Iowa’s transfer tax is modest by national standards — a $200,000 sale generates $319.20 in tax. Understanding the three-part base calculation, the ceiling-rounding rule, and the Declaration of Value obligation covers the entire scope of an Iowa transfer tax computation. This guide works through two examples: a standard cash home sale in Johnson County and a farm conveyance with an assumed mortgage in Polk County.
1 Understand Iowa’s Transfer Tax Structure
Iowa’s real estate transfer tax is governed by Iowa Code Chapter 428A, with the rate set by §428A.1 and exemptions listed in §428A.2.[1][2] Administrative rules in Iowa Administrative Code 701-109 cover county recorder duties, the Declaration of Value form requirements, assumed mortgage treatment, and multi-county procedures.[5]
The tax is a per-$500-unit levy — not a straight percentage — that has been in place for decades. The statutory language: “a tax of eighty cents for each five hundred dollars or fractional part of five hundred dollars in excess of five hundred dollars of the consideration.”[1] “Fractional part” mandates ceiling rounding: any amount above a full $500 multiple triggers an additional $0.80 unit. The effective rate is exactly 0.16% on the taxable excess.
The grantor (seller) is liable for the tax under §428A.3, though parties may agree otherwise privately. The tax must be paid when the deed is presented for recording — there is no grace period.[1]
Example A — Home Sale, Johnson County (Iowa City), $200,000 Cash
A seller conveys residential property in Johnson County for $200,000 cash. No assumed mortgage, no personal property included.
Transfer tax and DOV calculated in Steps 2–5. TAXABLE
Example B — Farm Sale, Polk County (Des Moines), $150,000 + $30,000 Assumed Mortgage
A seller conveys farmland in Polk County for $150,000 cash. The buyer also assumes the seller’s existing $30,000 mortgage.
Assumed mortgage is added to the taxable base — calculated in Steps 2–5. TAXABLE
2 Build the Taxable Consideration Base
Iowa law defines “consideration” broadly to capture the full economic value of the transfer.[1][5] Three components make up the taxable base.
Add: Cash Sale Price
The agreed cash price is the starting point. For a straight cash purchase with no financing or personal property, it is the entire taxable base.
Add: Assumed Mortgage or Lien Balance
When a buyer assumes the seller’s existing mortgage, the outstanding loan balance is added to the taxable consideration.[5] Iowa Administrative Code 701-109.2(13) makes this explicit: the assumed mortgage balance is included in full. The seller walks away relieved of that debt — economically equivalent to receiving additional cash.
Subtract: Personal Property Value
Personal property conveyed with the real estate — appliances, farm equipment, livestock — is deductible from consideration, provided it is separately itemized on the deed or an attached exhibit.[1] A blended price covering both real and personal property is taxed in full.
The $500 Base Exemption
Only the consideration in excess of $500 is taxable. If total consideration is $500 or less, no tax is due — reinforced by both §428A.1 and §428A.2(21).[1][2]
Taxable Base Formula (Iowa Code §428A.1 / IAC 701-109.2(13)): Taxable Base = Sale Price + Assumed Mortgage − Personal Property Taxable Excess = max(0, Taxable Base − $500) IF Taxable Excess = 0 → Tax = $0.00 IF Taxable Excess > 0 → Proceed to Step 3
Example A — Johnson County, $200,000 Cash
Taxable Base: $200,000 + $0 − $0 = $200,000
Taxable Excess: $200,000 − $500 = $199,500
Example B — Polk County, $150,000 + $30,000 Assumed Mortgage
Taxable Base: $150,000 + $30,000 − $0 = $180,000
Taxable Excess: $180,000 − $500 = $179,500
The assumed mortgage added $48.00 to the final tax compared to a cash-only $150,000 sale.
3 Apply the $0.80-per-$500 Rate with Ceiling Rounding
Divide the taxable excess by 500, apply ceiling rounding (round up to the next whole number), then multiply by $0.80.[1] Any fraction of $500 above a whole multiple forces a full additional $0.80 unit — the tax increases in $0.80 steps at each $500 boundary.
Transfer Tax Formula (Iowa Code §428A.1): Units = CEILING(Taxable Excess ÷ $500) Transfer Tax = Units × $0.80 Equivalently: Tax = $0.80 × ⌈(Consideration − $500) ÷ $500⌉ Edge cases: $500.00 → excess $0 → 0 units → $0.00 (at threshold) $500.01 → excess $0.01 → 1 unit → $0.80 (one cent over) $1,000 → excess $500 → 1 unit → $0.80 (exactly $500 excess) $1,000.01→ excess $500.01→ 2 units → $1.60 (fraction forces 2nd unit)
Example A — Johnson County, $199,500 Excess
Units: ceil(199,500 ÷ 500) = ceil(399.00) = 399 units
Transfer Tax: 399 × $0.80 = $319.20
County share (17.25%): $55.07 | State share (82.75%): $264.13
Example B — Polk County, $179,500 Excess
Units: ceil(179,500 ÷ 500) = ceil(359.00) = 359 units
Transfer Tax: 359 × $0.80 = $287.20
County share (17.25%): $49.54 | State share (82.75%): $237.66
4 Check for Statutory Exemptions
Iowa Code §428A.2 lists thirteen categories of transfers exempt from the transfer tax.[2] Exemptions are strictly construed. When an exemption applies, tax is $0 — but recording fees still apply. The deed must cite the applicable subsection on its face (e.g., “Exempt Iowa Code §428A.2(11) — parent to child, no consideration”); with that citation, the DOV (Form 57-006) is waived.[2][6]
Family and Estate Transfers
- §428A.2(11) — Spouse / Parent-Child. Deed between spouses or lineal relatives with no monetary consideration. A below-market sale (not a true gift) is taxable on the actual consideration.[2]
- §428A.2(16) — Divorce / Dissolution. Deed between former spouses pursuant to a final dissolution decree.[2]
- §428A.2(20) — Probate / Inheritance. Distribution to heirs, devisees, or legatees under a will or intestate succession, without sale consideration.[2]
- §428A.2(22) — Trust Distribution to Beneficiaries. 2023 Trustee conveys trust assets to beneficiaries without monetary consideration. Added by House File 2749, effective July 1, 2023.[2][7]
Business and Entity Transfers
- §428A.2(14) — Entity Merger / Consolidation. Transfer pursuant to a statutory merger of corporations, LLCs, or partnerships. The deed must state on its face that it is made pursuant to a statutory merger.[2]
- §428A.2(15) — Family Entity Reorganization. Transfer from a majority-family-owned entity to its owners in exchange for stock or debt securities only (not cash).[2]
Government and Special Purpose Transfers
- §428A.2(6) — Government (No Consideration). To or from U.S. government, State of Iowa, or local government without consideration. Sales to government with consideration are taxable.[2]
- §428A.2(18) — Deed in Lieu of Foreclosure. Title surrendered to a lienholder to satisfy debt, no additional cash. Sheriff’s auction sales to third parties are taxable.[2]
- §428A.2(17) — Easement Grant. Any easement conveyance — utility, access, conservation.[2]
- §428A.2(13) — Equal-Share Partition. Each co-owner receives only their proportionate share. Tax applies on any excess consideration paid above a proportionate share.[2]
- §428A.2(10) — Corrective / Confirmatory Deed. Corrects a prior recorded deed; no new consideration or substance added.[2]
- §428A.2(7) — Cemetery Lot. Conveyance of a grave site or cemetery lot.[2]
- §428A.2(21) — Consideration ≤ $500. Coincides with the §428A.1 base threshold.[2]
Example A — No Exemption (Standard Cash Sale)
Arm’s-length sale for $200,000. No family relationship, no merger, no government entity. Transfer tax is due.
Transfer Tax: $319.20 — paid by grantor to Johnson County Recorder at recording.
Example B — No Exemption (Farm Sale with Assumed Mortgage)
Arm’s-length farm conveyance. No exemption applies. Transfer tax is due on the full $180,000 base.
Transfer Tax: $287.20 — paid by grantor to Polk County Recorder at recording.
5 File the Declaration of Value and Pay at Recording
The final step is completing Iowa DOR Form 57-006 (Declaration of Value) and paying the transfer tax to the county recorder when the deed is presented for recording.
Declaration of Value — Form 57-006
Iowa Code §428A.1(2) requires a DOV signed by the grantor, grantee, or their agent to accompany any non-exempt deed at recording.[1][6] The DOV captures full consideration (including assumed mortgages), party names, property legal description, and county of recording. The county recorder stamps the form and forwards copies to the county assessor (for valuation) and the Iowa DOR (for statistics). If the deed itself clearly cites a §428A.2 exemption, the DOV is waived.
Recording Refusal — Iowa Code §428A.4
County recorders must refuse to record any deed for which transfer tax is unpaid or the required DOV is missing — unless a written exemption claim is made or the deed contains the statutory cite.[3] This mandatory refusal rule is the primary enforcement mechanism and applies uniformly across all 99 counties.
Revenue Distribution — Iowa Code §428A.8
Of every dollar of transfer tax collected:[4]
- 17.25% is retained by the collecting county for its general fund (~$0.138 per $500 of taxable consideration).
- 82.75% is remitted to the Iowa Department of Revenue by the 10th of the following month, allocated among the state General Fund, the Iowa Housing Trust Fund, and the Shelter Assistance Fund.
Multi-County Transactions
When one deed covers parcels in multiple counties, the consideration must be apportioned and separate tax payments plus DOV forms filed in each county recorder’s office.[1][5] Unlike some states, Iowa does not allow a single filing in the “largest acreage” county.
Filing Summary: Who Pays: Grantor (seller) — at time of recording Where: County Recorder of the county where property is located Form: Iowa DOR Form 57-006 (DOV) — required unless deed cites §428A.2 Refusal Rule: Recorder MUST refuse if tax unpaid OR DOV missing Revenue Split: 17.25% county general fund / 82.75% Iowa DOR Remittance: State share due Iowa DOR by 10th of following month
Example A — Full Filing, Johnson County
Grantor presents deed + completed Form 57-006 (DOV, showing $200,000 consideration) + $319.20 to Johnson County Recorder at recording.
Recorder enters $319.20 on the deed face, stamps DOV, forwards copies to assessor and Iowa DOR.
By the 10th of next month, Johnson County remits $264.13 (82.75%) to Iowa DOR.
Example B — Full Filing, Polk County
DOV must show full consideration of $180,000 (cash $150,000 + assumed mortgage $30,000 per IAC 701-109.2(13)).
Grantor presents deed + DOV + $287.20 to Polk County Recorder at recording.
By the 10th of next month, Polk County remits $237.66 (82.75%) to Iowa DOR.
Rate Reference Tables
| Sale Price | Taxable Excess (Price − $500) | Units | Tax Due | County (17.25%) | State (82.75%) |
|---|---|---|---|---|---|
| $0 – $500 | $0 | 0 | $0.00 | — | — |
| $501 | $1 | 1 | $0.80 | $0.14 | $0.66 |
| $1,000 | $500 | 1 | $0.80 | $0.14 | $0.66 |
| $1,001 | $501 | 2 | $1.60 | $0.28 | $1.32 |
| $100,000 | $99,500 | 199 | $159.20 | $27.46 | $131.74 |
| $150,000 | $149,500 | 299 | $239.20 | $41.26 | $197.94 |
| $200,000 | $199,500 | 399 | $319.20 | $55.07 | $264.13 |
| $250,000 | $249,500 | 499 | $399.20 | $68.86 | $330.34 |
| $300,000 | $299,500 | 599 | $479.20 | $82.66 | $396.54 |
| $500,000 | $499,500 | 999 | $799.20 | $137.86 | $661.34 |
| $1,000,000 | $999,500 | 1,999 | $1,599.20 | $275.86 | $1,323.34 |
| Scenario | Taxable Base | Excess | Units | Tax |
|---|---|---|---|---|
| $100,000 cash, no liens | $100,000 | $99,500 | 199 | $159.20 |
| $200,000 cash (Example A) | $200,000 | $199,500 | 399 | $319.20 |
| $150K + $30K assumed (Example B) | $180,000 | $179,500 | 359 | $287.20 |
| $250K with $5K personal property deducted | $245,000 | $244,500 | 489 | $391.20 |
| $500 sale (at threshold) | $500 | $0 | 0 | $0.00 |
| $500.01 (one cent over threshold) | $500.01 | $0.01 | 1 | $0.80 |
| Spousal transfer, no consideration | $0 — Exempt §428A.2(11) | — | — | $0.00 |
| Probate deed to heirs | $0 — Exempt §428A.2(20) | — | — | $0.00 |
| Deed in lieu of foreclosure | $0 — Exempt §428A.2(18) | — | — | $0.00 |
| Trust distribution to beneficiaries (2023+) | $0 — Exempt §428A.2(22) | — | — | $0.00 |
| Exemption | Code | Key Condition |
|---|---|---|
| Spouse / parent-child | §428A.2(11) | No monetary consideration; lineal relatives |
| Divorce / dissolution | §428A.2(16) | Pursuant to final dissolution decree |
| Probate — heirs/devisees | §428A.2(20) | Will or intestate; no sale consideration |
| Trust distribution 2023 | §428A.2(22) | Without monetary consideration; eff. 7/1/2023 |
| Entity merger | §428A.2(14) | Statutory merger; deed must state on its face |
| Family entity reorg | §428A.2(15) | Stock/debt only; majority-family-owned entity |
| Government (no consideration) | §428A.2(6) | U.S./Iowa/local govt; sales with consideration are taxable |
| Deed in lieu of foreclosure | §428A.2(18) | To lienholder; no additional cash. 3rd-party auction bids taxable. |
| Easement grant | §428A.2(17) | Any easement — utility, access, conservation |
| Equal-share partition | §428A.2(13) | Proportionate shares only; excess consideration taxable |
| Corrective deed | §428A.2(10) | Corrects prior deed; no new consideration |
| Cemetery lot | §428A.2(7) | Grave site or cemetery plot |
| Consideration ≤ $500 | §428A.2(21) | Coincides with §428A.1 base threshold |
References
- Iowa Code §428A.1 — Rate ($0.80 per $500 over $500); First $500 Exempt; Consideration = Price + Assumed Mortgage − Personal Property; DOV Required; Grantor Pays.
The primary statutory authority for Iowa’s real estate transfer tax. Imposes $0.80 per $500 (or fractional part) in excess of $500 of consideration. Mandates ceiling rounding via the phrase “fractional part.” Defines consideration to include assumed mortgage balances. Permits deduction of separately itemized personal property. Subsection (2) requires a Declaration of Value (Form 57-006) for non-exempt transfers. The grantor/seller is liable; payment is made to the county recorder at recording. Effective rate: 0.16% on taxable excess.
Iowa Legislature: legis.iowa.gov — Iowa Code §428A.1 - Iowa Code §428A.2 — All 22 Exemption Subsections; Deed Must Cite Applicable Subsection; DOV Waived with Statutory Citation.
Lists all transfers exempt from the Iowa transfer tax. Includes: (6) government without consideration; (7) cemetery lots; (10) corrective deeds; (11) spouse/parent-child gifts; (13) equal-share partition; (14) entity mergers (deed must state); (15) family entity reorganizations; (16) dissolution transfers; (17) easements; (18) deeds in lieu of foreclosure; (20) probate distributions; (21) consideration ≤ $500; (22) trust distributions without consideration (eff. 7/1/2023). For any claimed exemption, the deed must cite the subsection — e.g., “Exempt Iowa Code §428A.2(11).” With that citation, Form 57-006 is not required.
Iowa Legislature: legis.iowa.gov — Iowa Code §428A.2 - Iowa Code §428A.4 — Mandatory Recording Refusal; Tax Unpaid or DOV Missing; Written Exemption Claim Exception.
County recorders must refuse to record any instrument conveying real property unless the full transfer tax is paid, a written exemption claim is filed, or the deed contains a proper §428A.2 statutory citation. Also requires refusal when a required DOV is missing. This mandatory rule is the core enforcement mechanism and applies uniformly across all 99 Iowa counties. Practitioners must ensure tax is computed, DOV completed, and any exemption clearly cited on the deed before presenting it for recording.
Iowa Legislature: legis.iowa.gov — Iowa Code §428A.4 - Iowa Code §428A.8 — Revenue Distribution: 17.25% County / 82.75% State; Housing Trust Fund; Shelter Assistance Fund; Monthly Remittance by 10th.
Directs the split of transfer tax receipts: 17.25% to the county general fund; 82.75% remitted to Iowa DOR by the 10th of the following month. The state share is allocated among the General Fund, the Iowa Finance Authority’s Housing Trust Fund, and the Shelter Assistance Fund. County recorders must file monthly accounting reports with each remittance. At $0.80/$500, the county’s 17.25% share is approximately $0.138 per $500 of taxable consideration.
Iowa Legislature: legis.iowa.gov — Iowa Code §428A.8 - Iowa Admin. Code 701-109 — County Recorder Duties; IAC 701-109.2(13) Assumed Mortgage Rule; DOV Procedures; Multi-County Apportionment; Monthly Reporting.
The Iowa Department of Revenue’s administrative rules implementing Chapter 428A. Rule 701-109.2(13) explicitly states that assumed mortgage balances are included in taxable consideration. Recorders must use DOR-prescribed forms, refuse recording for incomplete DOVs, forward DOV copies to assessors, and file monthly reports. For multi-county deeds, the sale price must be apportioned by parcel and separate tax/DOV filings made in each county recorder’s office — Iowa does not permit consolidation in one county. Rules also address trades, installment contracts, and complex consideration structures.
Iowa Admin. Code: legis.iowa.gov — IAC 701-109 - Iowa DOR Form 57-006 — Declaration of Value; Required for Non-Exempt Transfers; Submitted at Recording; Forwarded to Assessor and Iowa DOR.
Iowa DOR Form 57-006 is the Declaration of Value form required for any non-exempt transfer. Signed by grantor, grantee, or authorized agent. Captures: full consideration (including assumed mortgages); party names; property legal description; county; and a certification of accuracy. The county recorder stamps it at recording and forwards copies to the county assessor (property valuation) and Iowa DOR (data collection). Form 57-011 provides instructions. Available at iowador.gov. If the deed contains a proper §428A.2 citation, the DOV requirement is waived.
Iowa DOR: tax.iowa.gov/forms — Form 57-006 and instructions (Form 57-011) - House File 2749 (Iowa Legislature, 2023) — §428A.2(22) Trust Distribution Exemption; Effective July 1, 2023.
Added subsection (22) to Iowa Code §428A.2 to explicitly exempt conveyances from a trustee to trust beneficiaries when no monetary consideration is paid. Before HF 2749, some county recorders treated trustee-to-beneficiary deeds as taxable. The amendment resolved this ambiguity, benefiting the large and growing number of Iowa families using revocable living trusts and irrevocable trusts for estate planning. The exemption applies to both revocable and irrevocable trusts and requires no consideration to pass. The 2026 executive summary also references HF 2749 as expanding DOV exemptions more broadly — practitioners should monitor the Iowa Legislature’s website for any further amendments to Chapter 428A.
Iowa Legislature: legis.iowa.gov — House File 2749, 90th General Assembly (2023) · Iowa Code §428A.2(22) - Iowa Land Records — Statewide Recorder Portal; Uniform $0.80/$500 Rate Confirmed; Transfer Tax Calculator Tool.
Iowa Land Records (iowalandrecords.org) is the statewide online portal operated by Iowa county recorders for remote access to recorded land documents. The portal’s resources confirm the $0.80 per $500 transfer tax rate applies uniformly across all 99 Iowa counties. The Iowa Land Records system includes a Transfer Tax Calculator used by county recorder offices, implementing the standard §428A.1 ceiling-rounding formula at the 0.16% effective rate. No county-specific rate differential has been identified — all 99 counties apply the uniform statewide schedule. The portal also provides the definitive list of all Iowa county recorder offices and their contact information.
Iowa Land Records: iowalandrecords.org - Iowa Department of Revenue — tax.iowa.gov; Transfer Tax Guidance; Forms; Monthly Remittance Procedures; Private Letter Rulings.
The Iowa DOR administers the transfer tax at the state level and publishes official guidance including current and historical Form 57-006, Form 57-011 instructions, rules on DOV completion for complex transactions, and county recorder monthly remittance procedures. The Iowa DOR issues administrative guidance and informal responses to unusual transaction questions. Its website (tax.iowa.gov) is the definitive source for any forms update, legislative change alert, or interpretive guidance. Practitioners with questions about unusual consideration structures, multi-party exchanges, or foreign entity mergers should consult the Iowa DOR before recording.
Iowa Department of Revenue: tax.iowa.gov - Polk County Recorder and Johnson County Recorder — Confirmed $0.80/$500 Statewide Rate; Separate Recording Fees Under Iowa Code §331.507.
Iowa’s two most prominent county recorder offices — Polk County (Des Moines) and Johnson County (Iowa City) — publish fee schedules confirming the $0.80/$500 transfer tax and the Form 57-006 DOV requirement for non-exempt deeds. Both offices confirm mandatory recording refusal for unpaid tax or missing DOV. Separate recording fees (typically $7 first page, $5 each additional page under Iowa Code §331.507) apply in addition to the transfer tax; these page-based fees vary slightly by county and are set by state statute, not local ordinance. Neither Polk County nor Johnson County imposes any county-specific transfer tax supplement. Contact information for all 99 Iowa county recorders is available through the Iowa Land Records portal and the State Association of County Auditors and Recorders of Iowa (SIACAR).
Polk County Recorder: polkcountyiowa.gov/recorder/ · Johnson County Recorder: johnsoncountyiowa.gov/recorder
Disclaimer: This guide is for general informational and educational purposes only and does not constitute legal or tax advice. Iowa’s real estate transfer tax is governed by Iowa Code §§428A.1–428A.8 and Iowa Admin. Code 701-109. All rates and exemptions are current as of 2026. Verify current rates, exemptions, and DOV requirements with the Iowa Department of Revenue (tax.iowa.gov) and your county recorder before recording. Consult a licensed Iowa real estate attorney or title professional for advice on specific transactions.