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Iowa Real Estate Transfer Tax

Under Iowa Code chapter 428A, the tax is 80 cents for each $500, or fraction, of consideration in excess of $500, owed by the seller (grantor) and paid to the county recorder before recording, along with a declaration of value stating full consideration. Exemptions include deeds of $500 or less, divorce deeds, mortgages, leases, corrective and tax deeds, easements, and deeds in lieu. The county keeps 17.25% and the state receives 82.75%.

Exam tip: 'Take off 500, count the 500s (round up), times 80 cents.' Forgetting to subtract the first $500 or rounding down are the common traps.
Example: A $287,350 sale: $286,850 / $500 = 573.7, rounded up to 574 x $0.80 = $459.20, paid by the seller.

1. What is the Iowa real estate transfer tax rate?

Answer & explanation

Answer: B. The tax is 80 cents for each $500 or fractional part of $500 of consideration in excess of $500. The $1.60 per $1,000 choice is close in rate but uses the wrong base and threshold and ignores per-$500 rounding.

Related terms & state variants

grantor Groundwater Hazard Statement (Iowa) (IA)transfer tax

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23