What is the Iowa real estate transfer tax rate?

Iowa charges a deed transfer tax of $0.80 for each $500 of consideration (or any fraction of $500), after exempting the first $500 of value. That works out to about $1.60 per $1,000, or roughly 0.16% of the price above the exemption. The tax is collected by the county recorder when the deed is recorded.

Who pays the transfer tax in Iowa, buyer or seller?

By custom and statute the seller (grantor) pays the Iowa real estate transfer tax, though a purchase contract can shift it to the buyer or split it. The tax must be paid before the deed is recorded with the county recorder, so it is typically settled at closing.

Is the first $500 of value really exempt?

Yes. Iowa law exempts the first $500 of consideration, then applies the $0.80-per-$500 rate to the remainder. So a $200,000 sale is taxed on $199,500, rounded up to the next $500 increment before the rate is applied.

Are any Iowa property transfers exempt from the tax?

Yes. Iowa exempts several transfers, including those between spouses, gifts where no consideration changes hands, transfers to or from government bodies, and certain transfers correcting or confirming title. Deeds with consideration of $500 or less owe no tax because of the base exemption.

How is the tax rounded?

Iowa rounds the taxable consideration up to the next full $500 before applying the rate, because the rate is charged on each $500 'or fraction thereof.' For example, a $250,300 sale is taxed as if it were $250,500 minus the $500 exemption.

Iowa Real Estate Transfer Tax Calculator

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Iowa levies a real estate transfer tax (often called the deed tax or documentary stamp) when a property deed is recorded. The rate is $0.80 for each $500 of the sale price, with the first $500 exempt, so the effective rate is about $1.60 per $1,000 of value above the exemption. This calculator applies Iowa’s exemption and rounding rule and shows who typically pays.

How it works

Iowa charges the tax on each $500 of consideration “or fraction thereof,” after the base exemption:

Taxable = sale price − $500 Units = ceil(taxable ÷ 500) Transfer tax = units × $0.80

Because the rate applies to each $500 or fraction, the taxable amount is effectively rounded up to the next $500 increment. A sale of $200,000 is taxed on $199,500, which rounds up to 399 units of $500, for 399 × $0.80 = $319.20.

Who pays and exemptions

The seller (grantor) customarily pays, but a contract can shift or split it.
The first $500 of consideration is exempt, so any sale of $500 or less owes nothing.
Common exempt transfers: between spouses, gifts with no consideration, government transfers, and title corrections.
The tax is collected by the county recorder at recording, normally settled at closing.

Worked example

A home sells for $325,000:

Taxable = $325,000 − $500 = $324,500
Units = ceil($324,500 ÷ 500) = 649
Transfer tax = 649 × $0.80 = $519.20

Note: This estimates the state-defined Iowa transfer tax only. Counties remit a portion to the state, but the rate is uniform statewide. Verify exemptions and current rules with your county recorder or the Iowa Department of Revenue.