Closing costs by state
Closing costs in Iowa
Closing costs in Iowa run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. Iowa charges a state transfer tax of $0.80 per $500 of consideration above the first $500 (real estate transfer tax, Iowa Code § 428A.1), about 0.16% of the price, and the seller customarily pays it.
Last verified ·Sources:legis.iowa.gov·legis.iowa.gov
The rules
What Iowa does differently
- State transfer tax
- $0.80 per $500 of consideration above the first $500 (real estate transfer tax, Iowa Code § 428A.1) (about 0.16% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- None; no county or city transfer taxes.
- Attorney at closing
- In Iowa closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Owner’s title policy
- Who pays the owner’s title policy in Iowa varies by county or region; it is set by local custom and the contract.
- Notes
- The statute puts the tax on the grantor: $639 on a $400,000 sale. Iowa bars private title insurance; coverage comes from Iowa Title Guaranty after an attorney's opinion on the abstract, which the seller customarily furnishes, so attorneys are part of every closing.
- legis.iowa.gov — “the tax is eighty cents for each five hundred dollars or fractional part of five hundred dollars in excess of five hundred dollars”
- legis.iowa.gov — “Any person, firm or corporation who grants, assigns, transfers, or conveys ... shall be liable for such tax”
Worked example
A $400,000 home in Iowa, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax follow Iowa’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.16%) | $640 |
| Total | $25,640 |
Questions
What people ask about Iowa
- Who pays the transfer tax in Iowa?
- Iowa charges a state transfer tax of $0.80 per $500 of consideration above the first $500 (real estate transfer tax, Iowa Code § 428A.1), about 0.16% of the price, and the seller customarily pays it.
- Do you need an attorney to close on a house in Iowa?
- In Iowa closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Who pays for the owner’s title policy in Iowa?
- Who pays the owner’s title policy in Iowa varies by county or region; it is set by local custom and the contract.
- How much are seller closing costs in Iowa?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,640 for the seller, including $640 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
Agent Workspace
Put the numbers to work
The workspace turns the figures you trust into a market update film, a seller net sheet in the CMA, or a buyer education video, from the same numbers. Free to start; one Pro covers every tool and every EstatePass exam channel.