Iowa Real Estate Transfer Tax

Calculating Selling Price of Real Estate (Transfer Tax)

Iowa Real Estate Transfer Tax Rates:

From/To Rate:

• June 21, 1932 to June 30, 1940 was $0.50 per $500
• July 1, 1940 to June 30, 1991 was $0.55 per $500
• July 1, 1991 to Present is $0.80 per $500

Steps:

• Step 1. Amount of transfer tax paid divided by rate (per $500) = A
• Step 2. Multiply A by 500 = B
• Step 3. Add B to 500 (exempt amount) = Price paid for Real Estate

Examples:

Tax paid in 1994 of $159.20
159.20 divided by .80 = 199
199 x 500 = 99,500
99,500 + 500 = $100,000 (Price paid for Real Estate)

Tax paid in 1949 of $54.45
54.45 divided by .55 = 99
99 x 500 = 49,500
49,500 + 500 = $50,000 (Price paid for Real Estate)

Source: Iowa Department of Revenue & Finance