What is a Transfer Tax?
Top 50 Questions about Farmland
In Iowa, a transfer tax (also known as revenue stamps) is a fee charged by the state when land is transferred from one person to another. It’s a standard cost associated with selling farmland or any real estate.
How Much Does Transfer Tax Cost?
The transfer tax rate in Iowa is $1.60 per $1,000 of the sale price.
- Example 1: If your farm sells for $1,000, the transfer tax is $1.60.
- Example 2: If your farm sells for $1,000,000, the transfer tax is $1,600.
Why Does Transfer Tax Exist?
The tax generates revenue for the state, helping fund public services and programs.
Key Takeaways
- Iowa charges $1.60 per $1,000 of the sale price as a transfer tax.
- The tax applies to all land transfers in the state.
- Factor transfer tax into your total costs when selling your farm.
For more insights on selling farmland, including understanding all costs, contact David Whitaker – Iowa Land Guy today!
David Whitaker | Iowa Land Guy