IOWA CAR SALES TAX · 2026
Iowa car sales tax calculator
Iowa charges a fee for new registration in place of sales tax: 5% of the price less any trade-in, plus $10. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,260.00.
Tax on this purchase
- Tax due
- $1,260.00
- Fee for new registration
- $1,260.00
- Taxed amount
- $25,000.00
- Trade-in subtracted
- $10,000.00
Iowa car sales tax by price
A new car from a dealer.
| Price | No trade-in | $10,000 trade-in |
|---|---|---|
| $20,000 | $1,010.00 | $510.00 |
| $35,000 | $1,760.00 | $1,260.00 |
| $50,000 | $2,510.00 | $2,010.00 |
| $75,000 | $3,760.00 | $3,260.00 |
Iowa car sales tax questions
How much is car sales tax in Iowa?
Iowa charges a fee for new registration in place of sales tax: 5% of the price less any trade-in, plus $10. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,260.00.
Does a trade-in lower Iowa's car sales tax?
Yes. Iowa taxes the price less the trade-in. A $10,000 trade-in on a $35,000 car from a dealer saves $500.00.
Is a manufacturer rebate taxed in Iowa?
No. A manufacturer rebate applied at the sale lowers the taxed price in Iowa: a $2,000 rebate saves $100.00.
Is a private car sale taxed in Iowa?
Yes. Iowa taxes a private sale at the same rate, and a trade-in still counts.
What the calculator leaves out
Title, registration and plate fees, dealer fees, and any yearly tax on owning the vehicle are not included.