Iowa used car dealer paperwork and sales tax guide
How Iowa sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Iowa dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Iowa: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Iowa deal.
Iowa tax and fees at a glance
| Item | Iowa |
|---|---|
| State tax | 5% state rate |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Documentary fee | Not part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $35 |
How Iowa sales tax is worked out
Iowa has no sales tax on vehicles. The buyer pays a one-time registration fee of $10 plus 5% of the purchase price to the county treasurer at titling, so the amount shown is an estimate and is not added to what is due now. The purchase price leaves out the trade-in allowance, the documentary fee and a separately itemized service agreement. The documentary fee is capped at $180 and the notice is required in the purchase agreement. Title fee starts at $35.
Required wording beside the dealer fee
Iowa requires this wording where the dealer fee appears. The Buyer's Order prints it.
DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO A BUYER FOR THE PREPARATION OF DOCUMENTS AND THE PERFORMANCE OF RELATED SERVICES. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS DETERMINED BY IOWA CODE SECTION 322.19A. THIS NOTICE IS REQUIRED BY LAW.
Iowa paperwork a dealer prints
DMS Apex prints these documents for a Iowa deal, all in black and white:
- Buyer's Order with the documentary fee notice
- Buyers Guide
This is general information, not legal or tax advice. Iowa rules change: confirm current requirements with the Iowa Department of Transportation.
Common questions
How much is sales tax on a used car in Iowa?
5% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Iowa Department of Transportation.
Does a trade-in lower the tax in Iowa?
Yes. In Iowa the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Iowa?
No. In DMS Apex the documentary fee is not part of the taxable amount for Iowa.
Does DMS Apex print Iowa dealer forms?
Yes. It prints Buyer's Order with the documentary fee notice, Buyers Guide.
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