Overview
The catch is exactly that question. Your bill of sale needs to say "gift" or "$0," and if the car is valuable enough that a county treasurer suspects a disguised sale, they can compare it against NADA or Kelley Blue Book value and assess the 5% fee against that instead - the same check applied to lowball private sales generally. There's also a separate, narrower provision for direct vehicle-for-vehicle trades between spouses, parents, and children that can exempt even a swap with unequal values, but the everyday one-way gift runs on the $10 rule above. The $35 title fee is due either way.
01 - Official fees
Iowa gift a car fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Fee for new registration (true gift) | $10.00 | $10 + 5% of $0 |
| Title transfer fee | $35.00 | |
| Lien notation fee (if applicable) | $20.00 | |
| High-value gift, treasurer applies NADA/KBB | $10 + 5% of book value | discretionary check |
| Family-to-family direct vehicle swap | May be exempt | narrower provision - ask your treasurer |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county treasurer (Iowa DOT) - counties can add small local fees.
02 - Step by step
How to gift a car in Iowa
- 1
Sign the title over to the recipient and write "Gift" and "$0" in the price field on the bill of sale.
- 2
Complete the odometer and damage disclosure sections on the back of the title, same as any transfer.
- 3
Recipient brings the title, bill of sale, proof of Iowa insurance, and ID to the county treasurer within 30 days.
- 4
Pay the $10 fee for new registration and the $35 title fee - no relationship documentation is required.
- 5
If the vehicle is unusually valuable for a '$0 gift,' be ready to explain - the treasurer can reference NADA/KBB value.
03 - Same state, other costs
More Iowa vehicle costs
04 - Common questions
Iowa gift a car FAQ
Do I have to be related to the recipient to gift a car tax-free in Iowa?
No. Iowa's fee for new registration is based purely on purchase price, not the relationship between giver and recipient. A true $0 gift to a friend costs the same $10 as a $0 gift to your child - most other states restrict their gift-tax break to immediate family.
What happens if I gift an expensive car?
Legally, still $10 - 5% of $0 is $0 regardless of the car's value. In practice, the more valuable the vehicle, the more likely a county treasurer scrutinizes a '$0 gift' and compares it to NADA or Kelley Blue Book value before accepting the transfer at face value.
Is there a separate rule for gifts or trades between spouses, parents, and children?
Yes - Iowa Code has a narrower exemption for a direct vehicle-for-vehicle trade between spouses, or between a parent/grandparent and child/grandchild (including step and adopted relationships), where no outside party is on either title. That's a swap provision, not the everyday one-way gift most people mean.
Does the recipient owe any other tax on a gifted car?
No Iowa income tax - gifts aren't taxable income to the recipient. The only state-level cost is the $10 fee for new registration and the $35 title fee, same as any transfer.
Can I gift a car that still has a loan on it?
Not cleanly - the lender holds the title until the loan is paid off or refinanced. Pay it off, get the lien release recorded (there's a $20 lien notation fee if a new loan replaces it), then complete the gift transfer.
Does gifting reset the 30-day title deadline?
Yes - gifts follow the identical 30-day rule as sales. Miss it and the flat $10 late title penalty applies just like any other transfer.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.