Iowa Home Seller Calculators
Estimate what you walk away with before you list. These calculators use Iowa's property tax schedule and state transfer tax rate. Your title or closing company sets the final figures.
How Iowa property taxes work at closing
Iowa property taxes are paid in arrears. The tax year runs July 1 through June 30, and each year's bill is paid in two halves the following September and March.
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That timing means a seller can owe two things at closing.
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Unpaid prior-year taxes. Any installment for the last completed tax year that has not been paid yet. Close before September and both halves are typically still open. Close between September and March and the March half is still open. Close after March 1 and the prior year is usually paid in full.
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Prorated current-year taxes. The share of the current tax year that falls before your closing date. These have not been billed yet, so the seller credits the buyer, who pays the bill when it arrives.
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Example: annual taxes of $4,000, closing November 15. The September installment has been paid. The March installment of $2,000 has not. July 1 through November 14 is 137 days, so prorated current-year taxes are about $1,501. Estimated seller credit to the buyer: about $3,501. How taxes are handled is set by the purchase agreement, so final numbers can differ.
Iowa real estate transfer tax
Iowa charges $0.80 for every $500 of the sale price, or part of $500, above the first $500. The seller customarily pays it when the deed is recorded. On a $400,000 sale, the tax is $639.20.