IA · #31 by population

Buying a home in Iowa

Costs and rules that are specific to Iowa. Main city: Des Moines.

In short

Iowa taxes property sales through its real estate transfer tax, requires an attorney for part of the closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for Iowa

If you buy

Iowa state transfer tax

Real estate transfer tax (Iowa Code chapter 428A): $0.80 for each $500, or fraction of $500, above the first $500 (about $1.60 per $1,000).

Price$227,300
State transfer taxnot computed
Who paysThe seller

Default price: the Iowa median value of owner-occupied homes, $227,300 (Census ACS 2024). Not computed: Tax = $0.80 x number of $500 blocks (a fraction counts as a full block) in the price above the first $500. Example: $300,000 gives 599 blocks x $0.80 = $479.20. Personal property stated on the deed is deducted first. Consideration of $500 or less is exempt. Who pays: By statute the person who conveys the property, normally the seller, is liable (428A.3); the contract can allocate it differently. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Iowa transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Iowa state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Iowa in short

Is there a real estate transfer tax in Iowa?

Iowa taxes real estate transfers at $0.80 for each $500 of price above the first $500, or $1.60 per $1,000, which is $479.20 on a $300,000 home. By law the seller, as the person conveying, is liable.

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What closing costs does Iowa law set?

Iowa has no official typical closing-cost total. The transfer tax is $0.80 per $500 of price above $500, Iowa Title Guaranty charges a flat $175 up to $750,000, and Polk County charges $12 for a deed's first page.

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How is property tax calculated in Iowa?

Iowa taxes a home's assessed market value after a state rollback, set at 44.5345% for residential property for the 2025 assessment year. In Des Moines the 2026-27 consolidated rate is $43.74496 per $1,000 of taxable value.

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What is the deadline to appeal a property tax assessment in Iowa?

In Iowa, file a written protest with the county board of review from April 2 through April 30 of the assessment year.

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Do you need a real estate attorney to close in Iowa?

No Iowa statute or court rule read requires an attorney at closing, but nonlawyers may not prepare deeds (Iowa Court Rule 37.5) and a title guaranty requires a title opinion from a participating attorney (Iowa Code 16.91(6)).

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What must a home seller disclose in Iowa?

An Iowa seller of a home with one to four units must give the buyer a written disclosure statement before making or accepting a written offer (Iowa Code 558A.2).

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How does foreclosure work in Iowa?

Iowa foreclosures are judicial: the lender must sue in court, and for an owner-occupied one- or two-family home must first give a 30-day right to cure. After a sheriff's sale the owner by default has one year to redeem and keeps possession meanwhile, unless the lender chose a faster track.

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What first-time home buyer programs does Iowa offer?

In Iowa, the Iowa Finance Authority (IFA) offers FirstHome buyers a $2,500 grant or a second loan of up to 5% of the price with no monthly payment.

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How are title insurance rates set in Iowa?

Iowa does not allow private title insurance (Iowa Code 515.48(10)). Iowa Title Guaranty, a division of the Iowa Finance Authority, issues title coverage for a flat $175 up to $750,000, then $1 per $1,000 above.

Full Iowa guide

How much tax when you sell a home in Iowa?

The federal rule is the same in Iowa as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Iowa income tax on the gain is not computed here.

Capital gains on a home sale

Iowa guides

Des Moines

Buying a home in Des Moines, Iowa

Professionals in Iowa

All states · Federal guides