Johnson County, IA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- State Excise
- 5% on lodging
- Local Tax
- 7% Iowa City & Coralville
- Total
- About 12%
- Platforms
- Collect automatically
- Law
- Iowa Code 423A.4
Summary
Short-term stays in Johnson County owe Iowa's 5% state hotel/motel excise tax plus the local hotel/motel tax, which is 7% in Iowa City and Coralville, for a 12% total. Platforms collect the state tax automatically.
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
Full Breakdown
Iowa taxes short-term lodging under the state 5% hotel/motel excise tax, charged in lieu of regular sales tax. On top of that, Iowa Code 423A.4 lets a city or county add a local hotel/motel tax of up to 7%. Iowa City and Coralville both levy 7%, so a guest pays about 12% total; North Liberty and unincorporated Johnson County also impose the local tax. Airbnb and Vrbo collect and remit both taxes for bookings made on their platforms. Direct bookings require registering with the Iowa Department of Revenue and remitting the state and local tax yourself.
Violations & Fines
Failing to collect or remit lodging tax brings Iowa Department of Revenue penalties and interest, and can escalate to an audit. Tax evasion can carry misdemeanor charges.
Frequently Asked Questions
How much tax do I collect in Iowa City?
Does Airbnb handle the tax?
Sources & Official References
- [1]Iowa Code
Other rules in Johnson County
How Johnson County compares: Cities with the Highest Short-Term Rental Taxes·Compare Johnson County to another location·View the Iowa short-term rentals overview
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