Iowa · Code §428A.1Iowa transfer tax: 80¢ per $500 above the first $500
Iowa taxes each deed transferring real estate for consideration at eighty cents for each $500, or fraction, of the price in excess of $500 (Iowa Code §428A.1). There is no tax when there is no consideration or on a deed recorded to correct title. Consideration is the full sale price, including any lien the buyer assumes; personal property is presumed included unless its value is stated on the deed, in which case it is deducted. On a $400,000 sale the tax is $639.20.
Rate, who pays and an example
Rate
80¢ per $500 or fraction above the first $500 of consideration (§428A.1(1)(a)(2)).
No tax
No consideration, or a corrective deed that says so (§428A.1(1)(a)(1)).
Consideration
Full sale price, including liens assumed by the buyer (§428A.1(1)(b)).
Personal property
Deducted only if its dollar value is stated on the deed (§428A.1(1)(c)).
Example
$400,000 sale → ($400,000 − $500) ÷ $500 = 799 × $0.80 = $639.20.
What the TC checks
- The tax line on the closing statement against the statutory rate.
- Who pays it – the statute, the contract or local custom.
- The value or consideration stated on the deed or declaration.
Questions about this tax
How much is Iowa's transfer tax?
80 cents per $500 of the price above the first $500 – $639.20 on a $400,000 sale (Iowa Code §428A.1).
Can personal property reduce Iowa transfer tax?
Yes, if the dollar value of the personal property is stated on the deed; otherwise it is presumed included in the price.
Is a gift deed taxed in Iowa?
No tax applies when there is no consideration.
Related guides
Add the transfer tax check to the closing statement review as a task with an owner and due date in ClosingCode.
Start free trialSource: Iowa Code §428A.1 (legis.iowa.gov, read October 25, 2026).
General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.