Des Moines, IA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- City Rate
- 7%
- Iowa State
- 6% sales tax
- Combined
- ~13% on rooms
- Authority
- IA Code §423A
Summary
Des Moines lodging guests pay a combined ~13% tax: 7% city hotel-motel tax plus Iowa's 6% state sales tax, with revenues funding tourism, convention center, and Iowa Events Center operations.
423A.4 Locally imposed hotel and motel tax. 1. A city, a county, or a land use district created under chapter 303 may impose, by ordinance of the city council or by resolution of the board of supervisors or by ordinance of the board of trustees, a hotel and motel tax, at a rate not to exceed seven percent, which shall be imposed in increments of one or more full percentage points upon the sales price from the renting of lodging. The tax when imposed by a city shall apply only within the corporate boundaries of that city... 3. A local hotel and motel tax shall be imposed on January 1 or July 1, following the notification of the director of revenue. Once imposed, the tax shall remain in effect at the rate imposed for a minimum of one year.
Full Breakdown
Iowa Code §423A authorizes cities to levy a hotel-motel tax up to 7%, and Des Moines applies the maximum 7% rate. Combined with the 6% Iowa state sales tax, lodging guests pay approximately 13% on rooms. Some hotels in the downtown TIF district may collect additional self-supported municipal improvement district fees. Revenue funds Catch Des Moines tourism marketing, the Iowa Events Center, and Polk County convention infrastructure. Short-term rentals like Airbnb collect the same combined rate. Hotels file remittance through the Iowa Department of Revenue, which forwards the city share quarterly.
Violations & Fines
Tax assessments with interest, civil penalties, business-license suspension for chronic non-remitters, possible Iowa DOR fraud referrals.
Frequently Asked Questions
Does Airbnb collect this?
Where does the city tax money go?
Sources & Official References
Other rules in Des Moines
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