Iowa does impose a state real estate transfer tax under Iowa Code Chapter 428A. The rate is $1.60 per $1,000 of the sale price (equivalently stated as $0.80 per $500), applied to the amount above the first $500, which is exempt. This works out to an effective rate of about 0.16% of the sale price. The tax is uniform statewide — set by state statute, not by county or city ordinance — and county recorders collect it at the time the deed is recorded, using a Declaration of Value (DOV) form. By statute and standard local convention, the tax is paid by the seller/grantor (though, like most closing costs, it is technically negotiable between parties in the purchase contract). There is also a separate, small, statewide "county auditor transfer fee" (Iowa Code 331.507(2a)) and a flat recording fee ($7 for the first page, $5 per additional page) — these are distinct line items from the transfer tax itself, not local surcharges on the transfer tax rate. Numerous exemptions exist (e.g., transfers for no consideration, between spouses, into/out of certain trusts, government transfers) under Iowa Code 428A.2.
Seller closing costs in Iowa typically run roughly 6-10% of the sale price, dominated by real estate agent commissions (commonly cited around 5-6% combined for both sides, split roughly 2.5-3% per side), plus the transfer tax (~0.16%), title/escrow fees (title services often cited near 0.25% of price), recording fees, and prorated property tax credits to the buyer. Buyer closing costs (excluding commission, which sellers customarily pay) typically run roughly 2-5% of the purchase price, covering loan origination/lender fees, appraisal, home inspection, title insurance (owner's/lender's policies), and recording costs.
Who typically pays: Local convention in Iowa: the seller customarily pays the real estate transfer tax and the real estate agent commissions for both the listing and buyer's agents. The buyer customarily pays loan-related fees, appraisal and inspection costs, and lender's title insurance. All of this remains negotiable and can be reallocated in the purchase agreement (e.g., seller concessions).
No well-known county or city adds its own separate real estate transfer tax on top of the state rate — the $1.60-per-$1,000 rate is uniform statewide, and every county recorder's online "transfer tax calculator" (Scott, Polk, Dallas, Des Moines, Pottawattamie, Iowa, Wright counties, etc.) applies this same state-set rate; these county tools exist for convenience/collection, not because rates differ. Iowa has no "mansion tax" or supplemental high-value-transfer surcharge. Do not confuse the transfer tax with two other statewide, non-varying fees sometimes bundled into cost estimates: (1) a small statutory "county auditor transfer fee" under Iowa Code 331.507(2a), and (2) the flat document recording fee ($7 first page/$5 each additional page). As of July 1, 2022, Iowa also simplified the Groundwater Hazard Statement requirement (no longer always a separate filed document; can be satisfied via specific language on the deed itself in most cases), which affects seller disclosure paperwork but not the tax rate. Given the wide range and inconsistency across secondary sources (some blogs cite total seller costs as low as 6% and as high as 10%), commission-rate and total-cost figures should be treated as approximate market convention circa 2026, not fixed by law.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.