Apr 10
Economy

Iowa Lawmakers Push to Eliminate Sales Tax on Everyday Essentials

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Iowa Lawmakers Push to Eliminate Sales Tax on Everyday Essentials

Iowa families could soon get a break on everyday essentials like laundry detergent, toilet paper, and vitamins, thanks to a new set of bipartisan-backed bills making their way through the state legislature. The proposals, led by House Speaker Pat Grassley, would remove the state sales tax from these common household items—part of a broader push to ease financial pressure on Iowans amid rising costs of living.

Earlier this session, Speaker Grassley made it clear that helping families afford basic necessities was a top priority for House Republicans in 2025. In March, he told reporters the party would begin introducing legislation aimed at lowering everyday costs. Now, that promise is taking shape through House Files 963, 964, and 966, which target the sales tax on laundry soap, toilet paper, and dietary supplements like vitamins and minerals.

All three bills passed House subcommittees on Wednesday with bipartisan support—an encouraging sign that lawmakers on both sides recognize the value in helping households stretch their dollars a bit further.

“I was actually frankly a little surprised that these items hadn’t been previously exempted,” said Republican Rep. Christian Hermanson, who sat on one of the subcommittees. “I think every little bit where the state can lean in and loosen the burden of sales tax on a family, on daily necessities like toilet paper … or just detergent in general, is probably a good thing,” he told The Gazette.

Iowa isn’t alone in rethinking the way it taxes essentials. Across the country, states are taking a closer look at how their tax codes impact daily life. Dietary supplements, for instance, are already tax-exempt in several states including Connecticut, Maryland, Michigan, and New Jersey. Other states, like Hawaii and North Carolina, still tax vitamins and supplements, categorizing them as non-essential—even though they are part of millions of Americans’ health routines.

Groceries, on the other hand, are tax-free in many states, and some—like Arkansas—apply a reduced tax rate to food to lighten the load on families. However, everyday household items like laundry detergent and toilet paper are often still taxed across the board. That’s the category Iowa lawmakers are now trying to rethink.

While none of these individual changes will revolutionize state tax policy, the shift signals something more: a growing national awareness that small changes can make a real difference when it comes to essentials. If Iowa’s bills become law, they’ll join a wave of reforms aimed at prioritizing what families need most—not just what brings in the most tax revenue.

The proposed changes would apply to both in-store and online purchases, making them even more accessible to residents statewide. Though the bills still need full approval from the House and Senate, their early momentum suggests that help could be on the horizon.

In a time when families are balancing tight budgets with rising costs, this kind of relief—however small—can be meaningful. And Iowa may just be one of many states to start asking: Should we really be taxing the things people can’t live without?


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