Iowa Car Sales Tax Calculator

What you pay in tax when you buy a vehicle in Iowa, from the statute and the revenue department.

Verified September 21, 2026 · statute and revenue department cross-checked
The statute and the actual bill do not match.
Since January 1, 2025 the charge is $10 plus 5 percent. Older guides show only 5 percent.
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Buying the car is only half the cost. You still owe an annual registration fee.
See Iowa vehicle registration fees →

What to know about Iowa

Iowa calls this a fee for new registration rather than a sales tax, but it works the same way and applies to private sales too. Trade-in value is fully excluded as long as the same person is on both titles. Manufacturer cash rebates applied to the price are also excluded.

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See all 10 vehicle fee changes we found for 2026 →

Sources

Statute: Iowa Code § 321.105A
Iowa Code § 321.105A (2026)
“a "fee for new registration" is imposed in the amount of ten dollars plus five percent of the purchase price for each vehicle subject to registration”
Iowa Department of Revenue
“These vehicles are subject to a fee for new registration equal to ten dollars plus 5% of the sales or lease price. This fee for new registration also applies when vehicles are sold between private individuals.”


Last verified: September 21, 2026.
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Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.