Property tax, transfer tax and closing costs in Iowa

Iowa: Real estate transfer tax of $0.80 per $500 of consideration over the first $500. Seller pays by statute. Reassessment in odd-numbered years, with an annual assessment date of January 1.

Reviewed October 15, 2026. Every line links its statute or official source.

What Iowa sets

Transfer tax: Real estate transfer tax of $0.80 per $500 of consideration over the first $500. Source: revenue.iowa.gov
Who customarily pays: Seller pays by statute. Source: revenue.iowa.gov
Local transfer taxes: Not stated. No official source confirmed this yet.
Reassessment cycle: Reassessment in odd-numbered years, with an annual assessment date of January 1. Source: tax.iowa.gov
Homestead and other exemptions: Homestead tax credit on the first $4,850 of taxable value, and a homestead exemption of $6,500 of taxable value for owners 65 and over (2025). Source: revenue.iowa.gov
Owner’s title policy: Title opinions on an abstract are customary. Iowa has no private title insurers. The seller customarily pays for the abstract update. Source: iowafinance.com
How closings run: Attorney title opinion with closing by a title or closing company is customary. Source: iowafinance.com
Survey: Not stated. No official source confirmed this yet.
Other closing customs: Not stated. No official source confirmed this yet.

Iowa transfer tax on a $208,000 sale

State real estate transfer taxseller pays$332$208,000 less the first $500: $207,500 ÷ $500 = 415 units (rounded up for any fraction) × $0.80 = $332

seller pays: $332
Total transfer tax: $332

Statutory transfer taxes on a $208,000 sale, as of the reviewed date. Who pays is custom and contract outside the statute’s primary liability. Local taxes described above are not in this figure unless listed as a line. Recording fees, title and attorney charges are separate.

Open the Iowa transfer tax calculator, with a link to share and an embed for your site.

Typical property tax in Iowa

Median real-estate tax paid: $2,897 a year
Per month: $241
Median owner-occupied home value: $208,000
Effective rate they imply: 1.39%

Census American Community Survey five-year file, 2020-2024, tables B25103 and B25077, owner-occupied homes. The median bill rose 25% against the 2015-2019 file. An estimate for a typical home, not yours. Your bill depends on the parcel, its exemptions and the next reassessment.

For agents

Your buyers ask what closing costs in Iowa and who pays. This page answers from the statute, with the date it was checked. Send it, or embed the calculator on your own site.

Ike lets a licensed real estate agent originate the mortgage on the deals they already close. Expected compensation is about 100 basis points per eligible funded loan once licensed and sponsored. Ike is preparing licenses state by state.

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One email when Iowa rates, exemptions or transfer taxes change, and when the next reassessment lands.

Sources

Ike Mortgage LLC. NMLS ID pending. For licensing information, go to: www.nmlsconsumeraccess.org. Nothing on this page is a loan payment, rate, term or down payment, and nothing here is a Loan Estimate.