Iowa Car Sales Tax Calculator (2026)

• Iowa has no sales tax on vehicles subject to registration; buyers pay a fee for new registration of $10 plus 5% of the price.
• A manufacturer's cash rebate reduces the base only if it is applied to the purchase price.

Fee for new registration

5%

Local tax

None on vehicles

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Not taxed: the rebate lowers the taxable price

Figured with Iowa's rules for a buyer from a dealer.

• Used car, no trade-in$900

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,250

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $500.

• New car with a trade-in and a rebate$1,400

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $28,000. The trade-in saves $750. The rebate saves $100.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

Iowa has no local tax on vehicles, so buyers in Des Moines, Cedar Rapids and Davenport and everywhere else in Iowa are figured at the same state rate: $1,500 on a new $30,000 car. Whether the tax applies to your purchase still depends on the rules above.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Iowa.

Buying from a private seller

A car bought from a private seller owes the fee for new registration of $10 plus 5% of the purchase price. A bill of sale or equivalent document signed by the seller is required to establish the price. (legis.iowa.gov, checked Nov 10, 2026)

A car received as a gift

A car transferred from one individual to another as a gift, with no consideration, is exempt from the fee for new registration. A valid affidavit must be filed with the county treasurer when applying for registration. (legis.iowa.gov, checked Nov 10, 2026)

Moving to Iowa with your car

A car owned by someone who moves to Iowa is exempt from the fee for new registration if it was bought for use in the state or country the owner moved from and not, at or near the time of purchase, for use in Iowa. Iowa law requires new residents to title and register the car within 30 days of establishing residency. (legis.iowa.gov, checked Nov 10, 2026)

Buying outside Iowa

Iowa credits state sales, use or occupational tax paid to another state, or equivalent tax paid to another country, against the fee for new registration; if that tax was less than the Iowa fee, the difference is due. Only the other state's state-level tax counts, not county or local taxes. (legis.iowa.gov, checked Nov 10, 2026)

Active-duty military

A member of the armed forces stationed in Iowa is not counted as an Iowa resident if the member's vehicles are properly registered in the member's state of residency. Penalties for late annual registration are waived for owners in U.S. military service who were relocated after being placed on active duty on or after September 11, 2001. (legis.iowa.gov, checked Nov 10, 2026)

Deadline to pay

The buyer must apply to a county treasurer for a new registration and certificate of title within 30 calendar days after the purchase or transfer. The fee for new registration is paid at that time. (legis.iowa.gov, checked Nov 10, 2026)

Paying late

If the application for title or registration is not filed by the due date, a penalty of 10% of the fee for new registration is added. Filing inaccurate information that results in underpaying the fee adds a 5% penalty. (legis.iowa.gov, checked Nov 10, 2026)

Iowa is tied for 15th lowest of all 50 states and the District of Columbia for tax on a $30,000 car. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• South Dakota$1,200
• Iowa$1,500
• Wisconsin$1,500 – $2,370
• Missouri$1,568 – $3,446
• Nebraska$1,650 – $2,250
• Illinois$1,875 – $2,625
• Minnesota$2,063

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Iowa out-the-door price
• Auto loan calculator

• Illinois car sales tax
• Minnesota car sales tax
• Missouri car sales tax
• Nebraska car sales tax
• South Dakota car sales tax
• Wisconsin car sales tax