Iowa car tax
Iowa's yearly registration fee works as a car tax: 1% of the vehicle's list price plus 40 cents per 100 lb of weight. The value part drops after 7 model years. From 12 model years old the fee is a flat $50. You pay it to the county treasurer.
Iowa Code §321.109 and §321.113. Fee = 1% of list price + $0.40 per 100 lb (the weight part is not in the mills). The value part is 75% after 7 model years and 50% after 9. The fee is at least $50 after 7 years and a flat $50 from 12 years. Ages 0–7 = 10 mills. EVs add $130 and plug-in hybrids add $65.
Iowa car tax calculator
- $35,000 MSRP × 10 mills (vehicle age 2 yr) = $350
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Iowa
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Iowa: one-time tax
Iowa one-time registration fee (fee for new registration) — 5%. Your trade-in is subtracted before tax.
Iowa charges a 5% one-time registration fee in place of sales tax. No local option tax applies to cars.
Registration and due dates
The yearly fee is value plus weight, as described above. A title costs $25.
Due every year by the end of the month after your registration month (based on the owner's birth month).
Cut what your car costs in Iowa
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
How is Iowa car registration calculated?
1% of the list price plus $0.40 for every 100 pounds. After 7 model years the value part is 75%, after 9 years it is 50%, and from 12 years old the fee is a flat $50.
Is Iowa registration tax deductible?
Partly. The value-based part (1% of value) can be itemized as personal property tax. The weight part cannot.
Is there sales tax on cars in Iowa?
Iowa charges a 5% one-time registration fee in place of sales tax when you title the car.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.