Property Taxes in Iowa? (real estate, insurance, income)

[cyerby]

Hey y'all,
Just trying to get all my ducks in a row....do you guys pay property tax on vehicles in Iowa? I've noticed on realty websites that real estate taxes are a little higher than here, but by the time you add in my prorerty tax, were about even. So, I'm wondering if it's a break even deal, or not. Any info would be a big help!

Thanks y'all!

[MattDen]

Depends on where in the state you live, Iowa has high property taxes but I dont know if they have a car property tax like Nebraska.

Iowa is a very high tax rate state. The income taxes are high, the property taxes are high and the sales taxes are average.

[windom_eagle]

Iowa does has a slightly higher tax rate on cars. You do pay a tax based on the weight and value of the car. A $25000 vehicle (new) would run in the range of $300 / year to license, dropping as the car ages. The tax is not as bad as what in other states, but is higher than a few others in the midwest.

[calsac]

Iowa has a what they call Property tax on cars based on the the hundred weight and purchase price of your car. It is paid when you get your new tags every year. you are not sent a form once a year to fill out and send in money. Neat thing is if you itemize on the State Income taxes you can deduct a portion of that car registration. The tax booklet tells you the formula to use. Registration fees are the same the first 5 years on a new car. After that they drop some to really a low rate. I believe after registering for 5 or 6 years it is fixed at something like 20 or so dollars. You buy a new car here you pay a use tax of 5% the first year. You can finance that or pay it outright at the County Treasurers office.
So a 18000 purchase price car is going to be $900 plus what ever the license fees are.
Not sure how it works if you transfer a car into the state. Knowing how this state likes to tax things, I would bet there is some type of tax you have to pay on transfering it into the state.
Our income tax can be brutal, and depending where you live the real estate taxes can be terrible. Sales tax is 6% and some cities, counties are 7%. Real Estate taxes are deductible if you can itemize. Read close the itemize instructions on the state tax forms, I believe you can or could in the past deduct what you paid in Federal taxes.

[moveagain]

Originally Posted by calsac

Iowa has a what they call Property tax on cars based on the the hundred weight and purchase price of your car. It is paid when you get your new tags every year. you are not sent a form once a year to fill out and send in money. Neat thing is if you itemize on the State Income taxes you can deduct a portion of that car registration. The tax booklet tells you the formula to use. Registration fees are the same the first 5 years on a new car. After that they drop some to really a low rate. I believe after registering for 5 or 6 years it is fixed at something like 20 or so dollars. You buy a new car here you pay a use tax of 5% the first year. You can finance that or pay it outright at the County Treasurers office.
So a 18000 purchase price car is going to be $900 plus what ever the license fees are.
Not sure how it works if you transfer a car into the state. Knowing how this state likes to tax things, I would bet there is some type of tax you have to pay on transfering it into the state.
Our income tax can be brutal, and depending where you live the real estate taxes can be terrible. Sales tax is 6% and some cities, counties are 7%. Real Estate taxes are deductible if you can itemize. Read close the itemize instructions on the state tax forms, I believe you can or could in the past deduct what you paid in Federal taxes.

Hi, I have a question on this: my car tax is due at the end of the week, and then 2 weeks later I am moving out of my current state to IA. So, will there be any problem if I don't pay my current state and wait till I move to IA and pay there when I register my car to IA? Thanks

[wingit]

The state of Iowa isn't going to check up on any past due fees from another state, at least they never have on me. I've bought several out of state cars and all I had to pay was the Iowa fees.

[deckdoc]

you do not have to itemize to deduct Federal taxes~ Iowa believes that taxable income is what you have left after you pay your federal taxes~ insurance rates on vehicles is the lowest in the nation~ real estate taxes fairly heavy but usually values are lower than in other states~ I've got a 10 yo house in Iowa with 3200 sq ft~ 3 3/4 car garage~ on 4 acres that RE taxes are $710/ year! Cheaper than much smaller places out here in Az!

[concretegold]

I live in a small town near dsm ia, I pay 2,050 dollars a year in property tax, my car reg. fee a year is 275, I paid just over 1,900 in last year in state taxes and got back 400.00 I kind of forgot to tell them about my fed refund from the year before so I owe them 900.00 or so now. (they never check to my knowledge I just dont want to not do so year after year and get fined or something later if they start lol) income last year was like 52k total with 5 dependants total. I know that sales tax is going up to 7 or 8 percent state wide but not sure when, an extra tax for schools since smaller districts dont have enough money I guess. I also believe our income tax goes up this coming year as well. My insurance on my 06 kia sedona is 1000 a year and my house is 50 or 60 a month. hope this helps you get a comparison.

[zz4guy]

Income taxes are high, property taxes are high compared to most states, sales taxes range from 6-9% and taxes on cars are quite high. COmmercial property taxes are outrageous (8-10%). And corporate taxes are far and away THE HIGHEST IN THE COUNTRY!

They used to cap pickup truck registration fees at $50/yr. That was great until the 2006 elected democrats did away with that law (big surprise).

After 5 years your car does NOT go down to a flat $30 or whatever. I have a 5 year old Chevy Impala and they decided to rape me for $100+ this year.

With all the taxes around here we should be driving on gold paved streets. But all we ever hear from our local officials is whining that they need more money

FWIW I pay $1700/yr property taxes on a $110k house. 6% sales tax. $300+/yr in vehicle registrations. 10% of my income goes to the state. It's great to be an Iowan!