Iowa Car Sales Tax Calculator Tax, title & license fees (2026)
Fee for New Registration (FNR) instead of sales tax · 5% + $10 FNR
Calculate Iowa car tax & fees
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How much is car sales tax in Iowa?
Iowa doesn't charge retail sales tax on titled vehicles. Instead you pay a fee for new registration (FNR) of $10 plus 5% of the purchase price when you first register the vehicle. The county treasurer collects it, along with the title fee and annual registration.
Take the purchase price, subtract a qualifying trade-in, and subtract any manufacturer rebate that was applied at the time of purchase. A rebate you receive later doesn't count. Multiply by 5% and add $10.
A dealer's documentary fee isn't part of the FNR base, but it's still part of what you pay the dealer.
The title fee is $35. Annual registration depends on your specific vehicle, so use the Iowa DOT fee estimator for that number. Battery-electric vehicles add $130 a year and plug-in hybrids $65.
- Taxable = price - qualifying trade-in - manufacturer rebate applied at purchase
- FNR = $10 + 5% x taxable, minus tax paid elsewhere if applicable
- Doc fee (max $180) is excluded from the FNR base
- Total = FNR + title + annual registration + EV fee + lien + doc fee
Iowa car tax example with real numbers
Dealer purchase with a trade-in and rebate
You buy a new car for $30,000, trade in your old one for $7,000, and a $1,000 manufacturer rebate is applied at signing.
- FNR base: $30,000 − $7,000 − $1,000 = $22,000.
- 5% of the base: $1,100. Add the flat $10: FNR = $1,110.
- Add the $35 title fee: $35.
- Estimated total: $1,145, plus your annual registration fee.
| Taxes | |
|---|---|
| Fee for new registration ($10 + 5%)$10 + 5% of $22,000.00 | $1,110 |
| Title & registration | |
| Title | $35 |
| Estimated total | $1,145 |
Computed with the calculator on this page using the figures in our data. Local add-ons not mentioned in the example are left out.
Exceptions that change your Iowa tax bill
Gifts
A gift with no payment owes no FNR. A $1 'gift' is treated as a taxable purchase.
Inheritance
An inherited vehicle owes no FNR.
New residents and out-of-state purchases
Sales or registration tax already paid to another state is credited against the FNR if you have proof. New residents must title and register within 30 days of establishing residency.
Iowa vehicle sales tax rates
| FNR flat | $10 |
|---|---|
| FNR rate | 5% |
| Local rate | 0% |
Iowa title & registration fees
| Title | $35 |
|---|---|
| Title parts |
|
| EV battery EV | $130 |
| EV plug-in hybrid | $65 |
| EV motorcycle | $9 |
| Dealer doc fee cap | $180 |
| Annual registration | VIN-specific; varies |
| Residency days | $30 |
Iowa car tax exemptions & special cases
| Gift with no consideration | FNR $0 |
|---|---|
| Inheritance | FNR $0 |
| Rebate received after purchase | Does not reduce the base |
| Tax paid to another state / new resident | Credit against FNR |
| Nominal ($1) gift | Taxable purchase |
Iowa car tax FAQ
Does Iowa charge sales tax on cars?
No. It charges a fee for new registration of $10 plus 5% of the purchase price instead.
Does a manufacturer rebate lower Iowa's FNR?
Only if it's applied to the purchase price at the time of sale. A rebate you get afterwards doesn't count.
Is the dealer doc fee included in the FNR?
No. It's excluded from the FNR base.
How much is the Iowa EV fee?
$130 a year for battery-electric vehicles and $65 for plug-in hybrids.
Sources & verification
We checked these figures against the following official pages on October 7, 2026:
- www.legis.iowa.gov/docs/code/321.105A.pdf
- www.legis.iowa.gov/docs/code/321.116.pdf
- iowadot.gov/registration-plates/vehicle-registration-titles/register-vehicle
Not yet confirmed on an official page: title surcharge 5 (total 35); doc cap 180; EV motorcycle 9. Treat these figures as estimates.
Spotted something out of date? Tell us and we'll recheck it.