Top 50 Questions about Farmland
The Iowa farmland transfer tax is one of the closing costs sellers often ask about when preparing to sell land in Iowa. This tax, sometimes called revenue stamps, is charged by the state whenever farmland or any type of real estate is transferred. Understanding how it works helps you better estimate closing expenses.
How Much Does the Transfer Tax Cost?
The tax rate in Iowa is $1.60 for every $1,000 of the sale price. Because it is tied directly to the final selling price, the cost increases proportionally with the value of the property.
Examples:
- If your farmland sells for $100,000, the transfer tax is $160.
- If your farmland sells for $1,000,000, the tax totals $1,600.
Why Iowa Charges a Transfer Tax
This real estate tax helps fund county and state programs, public services, and infrastructure. Since nearly all property transfers include it, the fee is considered a normal part of selling land in Iowa.
How the Transfer Tax Affects Sellers
Sellers should factor this cost into their estimated closing expenses. While it is not the largest fee in a transaction, it does influence net proceeds. Knowing the amount in advance makes it easier to plan when comparing offers or evaluating expected returns.
Learn More About Selling Farmland
For more details on real estate transfer requirements, visit the State of Iowa website or review agricultural data at USDA.gov. To get personalized guidance, contact Iowa Land Guy David Whitaker for expert support.
