Main Content:
Calculating Selling Price of Real Estate (Transfer Tax)
Real Estate Transfer Tax Rates:
| From | To | Rate |
| June 21, 1932 | June 30, 1940 | .50 per $500 |
| July 1, 1940 | June 30, 1991 | .55 per $500 |
| July 1, 1991 | Present | .80 per $500 |
- Step 1. Amount of transfer tax paid divided by rate (per $500) = A
- Step 2. Multiply A by 500 = B
- Step 3. Add B to 500 (exempt amount) = Price paid for Real Estate
Examples:
Tax paid in 1994 of $159.20
159.20 divided by .80 = 199
199 x 500 = 99,500
99,500 + 500 = $100,000 (Price paid for Real Estate)
Tax paid in 1949 of $54.45
54.45 divided by .55 = 99
99 x 500 = 49,500
49,500 + 500 = $50,000 (Price paid for Real Estate)
Source: Iowa Department of Revenue & Finance
