Free Iowa Car Bill of Sale

Iowa Car Bill of Sale — What You Need to Know

Sales Tax Details

Iowa charges a One-Time Registration Fee — legally a "fee for new registration" under Iowa Code §321.105A, not a sales or use tax — of $10 plus 5% of the purchase price on private-party vehicle sales, collected by the county treasurer at the time of title transfer. Confirm the other title and registration fees with your county treasurer's office.

Exemption: A true gift from one person to another (no payment) and a vehicle passed on by inheritance are exempt from the fee for new registration; the county treasurer asks for a signed statement. A sale to a family member is not exempt.

Inspection Requirements

Iowa has no statewide safety inspection requirement and no emissions testing program. Vehicles may be driven to the county treasurer's office for title transfer without a pre-sale inspection.

Registration

Registration for this vehicle type is handled by Iowa Department of Transportation, Motor Vehicle Division — processed at county treasurer offices — not the same agency that handles cars in Iowa. Plan for separate filings.

Iowa Car Sale — Step-by-Step Checklist

1. Seller signs the back of the Iowa Certificate of Title over to the buyer, including the odometer disclosure section (federally required for vehicles of model year 2011 or newer).
2. Both parties complete a bill of sale recording the VIN, year, make, model, sale price, date of sale, and both parties' full legal names and addresses.
3. Seller removes Iowa license plates from the vehicle — plates belong to the owner in Iowa and must not be transferred with the car.
4. Within 30 days, the seller puts the plates on a replacement vehicle or turns them in to any county treasurer's office.
5. Buyer obtains Iowa liability insurance before driving the vehicle on public roads.
6. Buyer visits a county treasurer's office within 30 days of sale with the signed title, a bill of sale (or the Transfer/Sale Date section on Iowa titles issued since September 2023), and proof of insurance to complete Iowa DOT Form 411007 (Application for Certificate of Title and/or Registration).
7. Buyer pays the 5% One-Time Registration Fee (plus $10) on the purchase price, plus the title fee and registration fee, at the treasurer's office.
8. Buyer receives new Iowa plates and a new title issued in their name by the county.

Common Pitfalls

• Missing the 30-day title transfer window results in late fees charged by the county treasurer, and the buyer cannot legally register the vehicle until the title is transferred.
• Leaving plates on the vehicle: Iowa plates belong to the seller. Allowing the buyer to drive away with your plates means your registration — and potentially your insurance record — remains associated with a car you no longer own.
• Underreporting the sale price to reduce the One-Time Registration Fee is fraud; the fee is calculated on the purchase price, so record the real one.
• Assuming all 99 county treasurer offices work the same way: hours, appointment requirements, and processing times vary significantly — call ahead or check your county's website before making the trip.
• Failing to complete the odometer disclosure on the title itself: the federal Truth in Mileage Act requires odometer disclosure on the title document, not just on a separate bill of sale, for vehicles of model year 2011 or newer.

Pro Tip

The smoothest Iowa car sale happens when the seller prepares a complete document package before the buyer arrives: a clean title with odometer disclosure already filled in, a signed bill of sale with the agreed price clearly stated, and plates already removed. Because the buyer handles title transfer independently at their own county treasurer's office, the seller's job is essentially done at the moment of handoff — there is no seller filing requirement in Iowa equivalent to California's Release of Liability, which makes the process simpler as long as both parties have clean documentation from the start.

Iowa Car Bill of Sale — FAQs