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Iowa · What a car really costs

Buying a car in Iowa.

Iowa charges fee for new registration of 5% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.

5%
Fee for new registration on a vehicle
Full credit
Trade-in reduces the taxable price
$30.00
Title fee
$364
Registration, typical new car
$180
Doc fee, capped by law

How the tax works.

Iowa imposes no sales tax on vehicles; the one-time 'fee for new registration' ($10 + 5% of purchase price) applies at titling, with no local add-on.

Manufacturer cash rebates applied to the purchase price and trade-in allowances are both excluded from the purchase price.

Leases of six months or more: the lessor pays $10 plus 5% of the total lease price up front.

$10 plus 5% of the purchase price (Iowa Code 321.105A as amended for 2026).
Trade-ins: Trade-in value of a vehicle subject to registration traded toward the purchase is excluded from the purchase price (321.105A(2)(c)).

At the DMV.

FeeAmount
Title$30.00
Registration (value-based)~$364
Security interest (lien) notation (per lien)$20.00
Annual registration = 1% of the vehicle's value (list price) plus $0.40 per 100 lbs of weight (Iowa Code 321.109). A $35,000, 3,500 lb car: $350 + $14 = $364. Value depreciates on a statutory schedule after year 7.
Annual value-based tax: {"name":"Value-based annual registration fee","rate":"1% of value plus $0.40/100 lbs","notes":"The registration fee itself is the value-based charge; deductible portion is the value component."}

Leasing in Iowa.

upfront on total

Cities in Iowa.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

Des MoinesPolk CountyCedar RapidsLinn CountyDavenportScott CountySioux CityWoodbury CountyIowa CityJohnson CountyAmesStory CountyDubuqueDubuque CountyClintonClinton CountyWaterlooBlack Hawk CountyBooneBoone County
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Questions.

How much is sales tax on a car in Iowa?

5%. Iowa applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in Iowa?

Trade-in value of a vehicle subject to registration traded toward the purchase is excluded from the purchase price (321.105A(2)(c)).

What are title and registration fees in Iowa?

Title is $30.00. Annual registration = 1% of the vehicle's value (list price) plus $0.40 per 100 lbs of weight (Iowa Code 321.109). A $35,000, 3,500 lb car: $350 + $14 = $364. Value depreciates on a statutory schedule after year 7.

Is the doc fee capped in Iowa?

Yes, at $180. Iowa Code 322.19A: documentary fee may not exceed $180 and must be included in the advertised price.

How is a lease taxed in Iowa?

upfront on total

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.