Iowa Real Estate Transfer Tax

Figures verified November 12, 2026 against Iowa Code § 428A.1 · Update log

Short answer

Iowa's real estate transfer tax is $0.80 per $500 over the first $500 (0.16%). Iowa law doesn't name a side; by custom and in the standard purchase agreement, the seller pays. The county recorder collects it with the declaration of value. On a $500,000 home, it comes to about $799. An executor's deed handing an inherited house to an heir owes none.

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Iowa transfer tax calculator

Enter the sale price to see each tax, who pays it, and the total. Amounts like 650k or 2.5m work.

Sale price

Property

Iowa

Transfer tax: $799 (0.16% of the price)

Iowa real estate transfer taxSeller$799

Seller pays: $799
Buyer pays: $0

Giving the house to an heir instead of selling it? The executor's deed to an heir is exempt here. How it works in Iowa

An estimate from the rates on our Iowa page. The title company or closing attorney works out the final figure; recording fees and the agent's commission aren't included.

Iowa transfer tax rates

Tax	Rate	Who pays
Iowa real estate transfer tax	$0.80 per $500 (0.16%) on the part above $500	Seller

Who pays the transfer tax in Iowa?

Iowa law doesn't name a side; by custom and in the standard purchase agreement, the seller pays. The county recorder collects it with the declaration of value.

Whatever the custom, the purchase contract can shift the tax to the other side, so check it before you agree a price. The closing agent collects the tax from the sale money and pays it when the deed is recorded.

Selling an inherited house in Iowa

An inherited house reaches the heirs in one of three ways, and the transfer tax depends on which:

The executor deeds the house to the heirs. Wills and deeds that distribute an estate's property to its heirs or devisees are exempt (Iowa Code § 428A.2).
The house passes outside probate, to a surviving joint owner or under a transfer-on-death deed. There is no sale and no new deed from the estate, so no transfer tax; the new owner records a death certificate or affidavit.
The executor sells the house. When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

The heirs or the estate also owe income tax only on any rise in value after the death, because the house gets a stepped-up basis. The seller's transfer tax counts as a selling expense and lowers that gain. See what's left for each heir in the inherited house net proceeds calculator.

Do it yourself, correctly

The Executor's Final Tax Returns Kit

An estate pays 37% on income above $16,000. Paid out to the heirs on time, the same income is taxed at their rates, often 12%. The kit shows how, and is $49.

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Forms, deadline and other rules

Form: Declaration of value, filed with the county recorder.

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The final Form 1040, the estate's Form 1041 and any state return are the parts executors most often hand off. Leave your email and the rough estate size, and a CPA or Enrolled Agent who prepares estate returns will reply with a fixed price. Free, and no obligation.

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Transfer taxes in other states

Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

Or compare them all in the 50-state table.

Frequently asked questions

How much is the transfer tax in Iowa?

Real estate transfer tax: $0.80 per $500 over the first $500 (0.16%). On a $500,000 home, that comes to about $799 in total.

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

Iowa law doesn't name a side; by custom and in the standard purchase agreement, the seller pays. The county recorder collects it with the declaration of value.

Do you pay transfer tax when you inherit a house in Iowa?

Wills and deeds that distribute an estate's property to its heirs or devisees are exempt (Iowa Code § 428A.2).

Does an estate pay transfer tax when it sells a house in Iowa?

When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

Is transfer tax deductible?

Not as a tax deduction, but the seller's share counts as a selling expense: it lowers the amount realized, and so the taxable gain on the sale. The buyer's share is added to the buyer's cost basis.

Sources

This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.