Free Iowa Vehicle Bill of Sale
Selling or buying a vehicle in Iowa runs through your county treasurer's office, not a central DMV — each of Iowa's 99 counties processes title transfers locally for the Iowa DOT Motor Vehicle Division. Iowa requires a bill of sale or equivalent documentation, signed by the seller, to establish the purchase price, alongside the title application (Form 411007). The biggest source of buyer confusion is the 5% one-time registration fee: it is NOT a sales tax, and Iowa does not charge a separate sales tax on vehicle purchases. The fee is $10 plus 5% of the purchase price and is collected when you title at the county treasurer within 30 days.
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Iowa Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
Iowa charges a one-time fee of $10 plus 5% of the purchase price — this is NOT a sales tax. It is officially the "fee for new registration" under Iowa Code §321.105A and goes to road and bridge funds.
Exemption: A true gift from one person to another (no payment) and a vehicle passed on by inheritance are exempt from the one-time fee with a signed statement filed at the county treasurer. A sale to a family member is not exempt.
Inspection Requirements
Iowa is a no-inspection state — no annual safety inspection or emissions testing is required for private passenger vehicles. Out-of-state vehicles do not need a routine VIN inspection; one may be required in special cases, such as a vehicle from another state with only a registration as proof of ownership.
Registration
Registration for this vehicle type is handled by County Treasurer's Office (each Iowa county processes title transfers and registration) — not the same agency that handles cars in Iowa. Plan for separate filings.
Iowa Vehicle Sale — Step-by-Step Checklist
- Complete a bill of sale (signed by the seller) with full names, addresses, VIN, year/make/model, sale price, and date
- Seller signs and dates the Iowa title in the assignment block; complete the odometer disclosure if vehicle is model year 2011 or newer
- Buyer files Form 411007 (Application for Certificate of Title) at a county treasurer within 30 days
- Pay the 5% one-time registration fee (plus $10) at the county treasurer (NOT a sales tax — based on the purchase price)
- Bring valid Iowa driver's license or ID and proof of insurance to the county treasurer
- Buyer covers annual registration fee (weight + value based) and $35 title fee ($30 plus a $5 surcharge)
- Seller may file Form 411107 (Notice of Sale of Vehicle and Delivery of Title) with any county treasurer as proof of the sale — optional, not required
- Keep signed copies of the bill of sale and title for at least 5 years
Common Pitfalls
- Missing the 30-day titling window triggers a $10 penalty (Iowa Code §321.49) plus a penalty of 10% of the fee for new registration (§321.105A)
- Calling the 5% fee "sales tax" — it is a fee for new registration under Iowa Code §321.105A; a true gift with no payment is exempt, but a sale to a family member is not
- Skipping the optional Notice of Sale (Form 411107) leaves you with less proof of the sale date if tickets or tolls show up later
- Not checking county treasurer hours and appointment rules first — any county treasurer can take the application, but a wasted trip can push you toward late fees
- Skipping odometer disclosure on a vehicle of model year 2011 or newer voids the transfer — federal fines and civil damages possible for fraud
Pro Tip
Bottom line: file at a county treasurer within 30 days, bring Form 411007 plus a separate bill of sale if your title lacks the sale section, and budget for the 5% one-time fee — not sales tax.