Iowa Bill of Sale: When It’s Required, the 30-Day Rule and the 5% Fee

A bill of sale records who sold a vehicle to whom, for how much and on what date. In Iowa it is more than a nice-to-have: the Iowa Department of Transportation (Iowa DOT) lists it among the documents a seller gives an Iowa buyer. Whether you need a separate sheet depends on which version of the Iowa title you are holding.

This page sets out what the Iowa DOT and the Iowa Code ask of the seller and the buyer, quoted from the official pages, and gives you a free Iowa bill of sale template in PDF and Word.

Is a bill of sale required in Iowa?

For a sale between two private individuals in Iowa, yes, in one form or another. The Iowa DOT’s “How to Sell a Vehicle” page puts “Bill of sale” on the list of things to give an Iowa buyer, and then explains the one way around a separate document:

“Depending on which version of title certificate your county is using, you may use the updated title as the bill of sale under the Transfer/Sale Date section. If the title certificate does not include this section, a bill of sale is still required.”

Situation	Separate bill of sale?
Iowa title with a Transfer/Sale Date section	The title section can serve as the bill of sale. A separate one is still a good record of price, terms and condition.
Iowa title without that section	Yes. The Iowa DOT says a bill of sale “is still required”.
Buyer will drive on the seller’s current plates for up to 30 days	The buyer carries a copy of a bill of sale “which describes the vehicle, and is signed and dated by the seller and the buyer”, or the assigned title.
Buyer lives outside Iowa	Not on the Iowa DOT list for non-residents (title, odometer and damage disclosure). The buyer’s home state may ask for one.

The Iowa DOT links to a bill of sale template published by the Iowa State County Treasurers Association. Ours, below, covers the vehicle, price, odometer and damage disclosure details and adds an after-sale checklist.

Iowa deadlines at a glance

When	Who	What
At the time of sale	Seller	Deliver the title. “Iowa law requires a title or junking certificate to be delivered at the time of sale to the buyer.” Remove the license plates.
Within 30 days	Buyer	Transfer the title at a county treasurer’s office: the title “needs to be transferred by the buyer within 30 days of a vehicle being purchased.”
After the sale	Seller	If you buy another vehicle within 30 days, the plates can go on it (fees paid on the new vehicle). If not, turn the plates in to the county treasurer.
Within six months	Seller	Claim a refund of unused registration fees (Claim for Refund form, any county treasurer) if the amount is $10 or more, no replacement vehicle took the credit, and the plates have been turned in.

What the seller has to do

• Assign the title. Sign the back as seller, “print the name/address of the buyer on the top line, and print the date of sale”. Give the buyer the name of the county where the vehicle was last registered and the date the plates expire.
• Complete the odometer statement. It is normally in the assignment area of the title. For transfers from December 31, 2020 through December 31, 2030, Iowa requires odometer disclosure for vehicles of model year 2011 or newer.
• Complete the damage disclosure statement. Also normally on the title; see the section below on when it applies.
• Remove the license plates and keep them. The Iowa DOT says this step “always remains the same” whoever the buyer is. If you buy another vehicle within 30 days, they can go on it; otherwise turn them in to the county treasurer.
• Keep proof of the sale. The DOT suggests a receipt from the buyer, a copy of the back of the assigned title, or filing form 411107, “Notice of Sale of Vehicle and Delivery of Title”, with any county treasurer.

What the buyer has to do

Driving home. If you have no plates to transfer and the vehicle is currently registered, the Iowa DOT says you can use it for 30 days without plates as long as you carry a copy of a signed and dated bill of sale that describes the vehicle, or the assigned title. The DOT still suggests going to the treasurer “immediately”. You can also buy a 30-day temporary permit from the county treasurer for $25. If the vehicle is not currently registered, it “cannot legally be operated on the highways until the registration fees are paid.”

The fee for new registration: 5% of the price

Iowa does not call it sales tax. Under Iowa Code section 321.105A, a “fee for new registration” is imposed “in the amount of ten dollars plus five percent of the purchase price for each vehicle subject to registration”. The owner pays it to the county treasurer when applying for the new registration and title. The annual registration fee is on top.

That is why the price on the bill of sale matters in Iowa. The Iowa DOT lists “tax fraud where the purchase price is under-reported, or an exemption improperly claimed to avoid payment of the tax (fee for new registration)” as a form of vehicle fraud. Write the real price. Under section 321.105A, a willful false statement about the purchase price is a fraudulent practice and carries a penalty of 75% of the unpaid fee, and filing the title application late adds a penalty of 10% of the fee for new registration.

Section 321.105A also sets out exemptions. Two matter most in private sales: a true gift between individuals “in a transaction in which no consideration is present”, and, in a trade between two private parties, the trade-in value of the vehicle traded (the names on both titles must match, with some family exceptions). Ask the county treasurer before claiming either.

Purchase price	Fee for new registration ($10 + 5%)
$3,000	$160
$8,000	$410
$15,000	$760

Note: these are worked examples of the statutory formula only. The annual registration fee is separate and depends on the vehicle; the Iowa DOT has a fee calculator.

Damage disclosure and odometer: the Iowa rules

Iowa also requires a written damage disclosure when the vehicle has had serious damage:

• The threshold. Damage must be disclosed “if it exceeds 70 percent of the fair market value of the motor vehicle before it became damaged”, using the retail cost of repair, with parts, labor and sales tax.
• Which vehicles. All motor vehicles except, among others, vehicles “more than seven model years old”, motorcycles, motor trucks with a gross vehicle weight rating of 16,000 pounds or more, and new vehicles with 1,000 miles or less unless repair costs exceeded 70% of fair market value.
• Where. Usually on the back of the title. For some titles, “such as when the title is one issued prior to Jan. 1, 2005, a separate damage disclosure statement is required.”
• Odometer. Required for model year 2011 or newer until December 31, 2030. From January 1, 2031, the rule becomes “the current year minus twenty”. If the reading is not the actual mileage, tick the box that says why.

The Iowa DOT’s own example: a vehicle worth $22,000 when damaged that cost $16,000 to repair crosses the 70% line, so the “Yes” box must be checked.

Selling to someone from another state

For a buyer who is not an Iowa resident, the Iowa DOT list is shorter: the completed odometer and damage disclosure statements and the title “with the assignment portion properly completed”. Remove the plates and the registration card, and write the out-of-state buyer’s name and address on the registration card. Unless the plates go on another vehicle, surrender the plates and card to the county treasurer: without the completed registration card, no refund of annual registration fees is possible (Iowa Code section 321.52). If the buyer has no valid plates and the vehicle is currently registered, the county treasurer can issue a 30-day transit plate for $3. The buyer then follows the rules of their own state, which may ask for a bill of sale.

What to put in an Iowa bill of sale

• Full names and addresses of seller and buyer.
• Year, make, model, body style, color and vehicle identification number (VIN). The Iowa DOT tells buyers to check that the VIN on the vehicle matches the VIN on the title.
• Title number and the odometer reading at the sale.
• Date of sale and the real purchase price, or “gift”.
• Any lien and whether it has been released.
• Signatures and dates of seller and buyer. The Iowa DOT pages on private sales describe a bill of sale “signed and dated by the seller and the buyer” and do not mention notarization.

Common mistakes

• Leaving the plates on the car. In Iowa the seller removes them and keeps them.
• Keeping the title in the glovebox. The Iowa DOT warns that it “could allow a fraudster to add a lien or transfer ownership illegally.”
• Writing a lower price. The 5% fee is worked out from the purchase price, and under-reporting it is on the DOT’s list of fraud.
• Skipping the damage disclosure. It applies to vehicles up to seven model years old, and the seller must give it “at or before the time of sale”.
• Missing the 30 days. Failing to transfer the title is a violation of Iowa law, according to the DOT.

Free Iowa bill of sale template

Fill it in online below, or download the 2026 Iowa version in PDF or Word. It has the vehicle, price and odometer fields, a damage disclosure line and a checklist of the Iowa DOT steps after the sale. Nothing is uploaded and there is no signup.

Iowa bill of sale: common questions

Does Iowa require a bill of sale to sell a car?

When the buyer is an Iowa resident, the Iowa DOT lists a bill of sale among the documents the seller gives the buyer. Newer Iowa titles have a Transfer/Sale Date section that can be used instead; if your title does not have it, a separate bill of sale “is still required”.

Does an Iowa bill of sale need to be notarized?

The Iowa DOT pages for private sales ask for a bill of sale that is “signed and dated by the seller and the buyer”. They do not ask for a notary.

How long does a buyer have to transfer a title in Iowa?

Thirty days from the purchase. The Iowa DOT says the title “needs to be transferred by the buyer within 30 days of a vehicle being purchased.”

How much tax do I pay on a used car bought from a private seller in Iowa?

Iowa charges a one-time fee for new registration of $10 plus 5% of the purchase price (Iowa Code 321.105A), paid to the county treasurer when you title the vehicle, plus the annual registration fee.

Who keeps the license plates when a car is sold in Iowa?

The seller removes them and keeps them. If you buy another vehicle within 30 days they can go on it; otherwise turn them in to the county treasurer.

Can I drive a car I just bought in Iowa without plates?

If the vehicle is currently registered, yes, for 30 days, as long as you carry a copy of a signed and dated bill of sale that describes the vehicle, or the assigned title. Otherwise the county treasurer sells a 30-day temporary permit for $25.

Related

• Bill of sale rules for all 50 states + DC
• Vehicle bill of sale template
• Kansas bill of sale: why most Kansas cars are sold on the title, not a bill of sale
• Missouri bill of sale: Forms 1957 and 5049