Sioux City, IA Short-Term Rentals: Taxes & Fees (2026)

Three rules drive the Sioux City STR tax stack. (1) Iowa State Hotel and Motel Tax: Iowa Code §423A.3 imposes a 5% excise tax on the sales price of lodging rented for less than 90 consecutive days, administered by the Iowa Department of Revenue. (2) Local Hotel and Motel Tax: Iowa Code §423A.4 authorizes cities to impose a local hotel/motel tax of up to 7% upon voter approval. Sioux City has adopted the maximum 7% rate, generating more than $2.8 million in fiscal 2024, with roughly half dedicated to the Sioux City Regional Convention and Visitors Bureau (Explore Siouxland) and the remainder to the city general fund. (3) 90-Day Exemption: Per Iowa Code §423A.5 and House File 760 (2020), when the same guest stays more than 90 consecutive days, the rental is exempt only after day 90; the first 90 days remain taxable and the tax is non-refundable. STR hosts collect 12% on each booking, file a single combined return through the Iowa Department of Revenue's GovConnectIowa portal, and Iowa remits the local share to Sioux City. Airbnb has a voluntary collection agreement with Iowa DOR that remits both state and local components for Iowa STR hosts; VRBO and direct bookings require the host to register, collect, and remit manually. Some Sioux City hotels also voluntarily participate in an additional 1.65% lodging fee benefiting Explore Siouxland; that fee is not currently mandatory for STRs.