When an Iowa deed is presented for recording, Iowa's transfer tax statute requires a declaration of value to go with it, unless the deed falls under one of the exemptions the statute lists. For those, a signed exemption statement on the deed takes the form's place. A family gift, a correction deed, a divorce transfer and any deed for $500 or less are all on that list.
Tied to the declaration is a second document, the groundwater hazard statement, or the one-sentence no-hazard statement on the deed's first page. This page explains the declaration, every exemption, how to write the statement, and how the groundwater rule fits.
What the Declaration Is For
Iowa taxes the transfer of real estate at 80 cents for each $500 of consideration above the first $500, and the declaration of value is how the price is reported. The statute says that when a deed conveying Iowa real property is presented to the county recorder, a declaration of value signed by at least one of the sellers or one of the buyers, or their agents, is submitted with it. The recorder does not record the declaration. The recorder enters the recording details on it and sends it to the city or county assessor, who uses the sale price in the sales-assessment ratio studies the Department of Revenue runs to keep assessments in line with the market.
The recorder is required to refuse a taxable deed until the tax is paid and to refuse any deed that needs a declaration until the declaration is submitted. A deed recorded in breach of the rule is still valid between the parties and still gives notice, but a recorder who follows the statute will not record it in the first place.
Which Deeds Are Exempt, and Which Still Need the Form
The exemptions are in section 428A.2 of the Iowa Code, numbered 1 through 22, and the statute then says which of them excuse the declaration as well as the tax. The Department of Revenue's instructions put it simply: the form is not required for any document that clearly states on its face that it is an exempt transaction, except for a land contract, certain transfers involving a federal agency or eminent domain, and a new category of assignment transfers that takes effect in 2027. The exemptions a quitclaim deed is likely to meet:
- 11. Between spouses, or between parent and child, without actual consideration. Canceling a debt secured by the property, up to its fair market value, is not actual consideration. Statement on the deed; no form.
- 21. Consideration of $500 or less. Statement on the deed; no form.
- 10. A deed that, without additional consideration, confirms, corrects, modifies or supplements a deed already recorded. Statement on the deed; no form.
- 16. A deed between former spouses under a decree of dissolution of marriage. Statement on the deed; no form.
- 20. A deed distributing assets to heirs at law or to devisees under a will, and 22. a deed distributing trust assets to beneficiaries without consideration. Statement on the deed; and since July 1, 2026 the Department no longer requires the form for the trust distribution either.
- 13. A partition deed among co-owners without consideration, with tax due only on any share taken above the party's undivided interest.
- 14 and 15. Transfers in a merger or reorganization, and deeds between a family company and its owners on organization or dissolution, where the deed says so on its face. Exempt, and since July 1, 2026 no form.
Where a gift is between people outside those relationships, a grandparent and grandchild for instance, exemption 11 does not reach it, but exemption 21 does if the consideration is $500 or less, and where there is no consideration at all the tax statute itself says there is no tax. The exemption statement then cites subsection 21.
Writing the Exemption Statement
The statute says the recorder shall not refuse to record an exempt deed if there is filed with it, or endorsed on it, a statement signed by the grantor, the grantee or an authorized agent that the instrument is excepted from the tax under section 428A.2. In practice the statement goes on the first page, below the three-inch margin, and cites the subsection, in substance: "Exempt from Iowa real estate transfer tax under Iowa Code section 428A.2(11), deed between parent and child without actual consideration." Sign and date it.
The wording has to fit the facts. A deed between siblings cannot claim subsection 11; a deed that recites $1,000 of consideration cannot claim subsection 21. The recorder reads the statement against the deed, and a mismatch is a rejection.
Filling In the Form When You Need It
Part I of the form takes the date of the instrument, whether it is a deed or a contract, the seller's and buyer's names, addresses, phone numbers and email, the property address and legal description, and two classifications: the type of sale, where the choices include a sale between related parties and a quitclaim deed, and whether agricultural land is being sold to a corporation, trust, alien, non-resident alien or limited partnership. Then the declaration itself: the total amount paid, the amount paid for personal property, and the difference, which is the amount paid for real property and the figure the tax is worked out on. One person signs, as buyer, seller, agent or attorney, declaring the information true and correct.
Personal property means what is not attached to the house and would normally leave with the seller: washers, dryers, drapes, stoves, refrigerators. The statute presumes the stated price includes any personal property unless its value is stated on the deed, so if the price includes furniture and you want it left out of the tax, say so on the deed and on the form.
Part II is the assessor's, and you leave it blank. Where the sale had unusual features, a sale between relatives, a trade, a partial interest, a related sales-condition form is attached so the assessor can decide whether the price reflects the market.
The Groundwater Hazard Statement Rides With It
Iowa's conveyancing statute says that with each declaration of value submitted to the recorder there is also submitted a groundwater hazard statement, on the form the Department of Natural Resources prescribes, signed by at least one seller. It states whether the property has a known private burial site, a well, a solid waste disposal site the Department has deemed potentially hazardous, an underground storage tank, hazardous waste, or a private sewage disposal system, and if it has a septic system, whether it has had the inspection Iowa requires at a transfer. The recorder sends the statements on to the Department, charges no fee for them, and the seller gives the buyer a copy.
Where none of those things is present, no statement is filed. Instead the first page of the deed carries this sentence, in the statute's words: "There is no known private burial site, well, solid waste disposal site, underground storage tank, hazardous waste, or private sewage disposal system on the property as described in Iowa Code section 558.69, and therefore the transaction is exempt from the requirement to submit a groundwater hazard statement." The owner is responsible for its accuracy. The recorder refuses a deed that has neither the form nor the sentence. Putting the sentence on the first page whether or not a declaration is being filed costs nothing and spares a question at the counter.
What This Means for Your Iowa Quitclaim Deed
- Decide which exemption fits, or none. For a gift between spouses, or between parent and child, it is subsection 11; for any other deed of $500 or less, including a gift for nothing to a brother, sister or grandchild, subsection 21.
- For an exempt deed, write the exemption statement on the first page, signed, and skip the declaration form.
- For a taxable deed, complete Part I of the declaration, have a buyer or seller sign it, and bring the tax to the recorder.
- Either way, file the groundwater hazard statement if the property has any listed hazard, or put the no-hazard sentence on the deed's first page if it has none.
Next step: our Iowa quitclaim deed page has the full sequence, from the first-page format rules and the spouse's signature to what recording costs.
Iowa Declaration of Value — Common Questions
What is an Iowa declaration of value?
A one-page state form, number 57-006, that reports what was paid for real estate when a deed is presented for recording. Iowa's transfer tax statute requires one, signed by at least one seller or one buyer or their agent, with every deed that conveys real property unless the deed falls under an exemption the statute lists. The recorder does not record the form; it goes to the assessor, who uses the price in the studies that keep assessed values in line with sales. Part I is completed by the parties, Part II by the assessor.
Do I need a declaration of value for a gift to a family member?
Not if the deed fits one of the exemptions that excuse the form. A deed between spouses, or between parent and child, without actual consideration is exempt from the transfer tax, and the statute lists that exemption among the ones for which no declaration is required. Instead, the deed carries a statement, signed by the grantor, the grantee or an agent, that it is exempt under section 428A.2 and which subsection applies. A gift to a brother, sister or grandchild cannot use that exemption, but it can claim the one for a deed of $500 or less. The Department of Revenue's instructions say the form is not required for any document that clearly indicates on its face that it is an exempt transaction, apart from three exceptions that do not concern a family quitclaim deed.
What do I write on the deed to claim the exemption?
A sentence citing the section and the subsection, signed. For a gift to a child, in substance: "Exempt from transfer tax under Iowa Code section 428A.2(11), deed between parent and child without actual consideration", followed by a signature. For a deed of $500 or less, cite subsection 21; for a correction deed, subsection 10; for a deed between former spouses under a divorce decree, subsection 16. The wording has to match the actual reason, because the recorder reads it, and a deed that claims the wrong subsection comes back.
Does a mortgage on the property change the family gift exemption?
Yes, if the child takes over the loan. Iowa counts a mortgage the grantee assumes as part of the consideration, so a parent who deeds a mortgaged house to a child who takes over the loan is not making a transfer without actual consideration, and the family exemption does not apply. The statute's separate rule about canceling a debt covers a debt owed between the parent and the child themselves, not a bank mortgage. A mortgage that stays on the property without the child assuming it is not counted.
What is the groundwater hazard statement, and does it go with the declaration?
Yes. Iowa's statute says that with each declaration of value there is submitted a groundwater hazard statement, on a Department of Natural Resources form, saying whether the property has a known private burial site, well, solid waste disposal site, underground storage tank, hazardous waste or private sewage disposal system. It is signed by a seller and filed at no fee. Where the property has none of those, no form is filed and the first page of the deed carries a one-sentence statement, in the statute's words, that there is none. The recorder refuses a deed that has neither.
Official Sources
Iowa's laws are collected in the Iowa Code, and a citation such as section 428A.2 is an address: the chapter, then the section within it. You do not need any of these to follow this page. They are here so that you, or an attorney, can read the exact wording rather than take this page's word for it. Each links to the section on the Iowa Legislature's website, which opens in a new tab.
- Iowa Code § 428A.1 — the tax, what counts as consideration, and the declaration of value: who signs it, what it states, and which exempt deeds need none.
- Iowa Code § 428A.2 — the 22 exemptions, including the family, correction, divorce, estate, trust and $500 exemptions.
- Iowa Code § 428A.4 — the recorder's duty to refuse a taxable deed until the tax is paid, and to accept an exempt deed on a signed exemption statement.
- Iowa Code § 428A.5 — the tax is paid to the recorder and the amount appears on the face of the deed.
- Iowa Code § 558.69 — the groundwater hazard statement, the first-page statement that replaces it, and the recorder's refusal without one.
- Iowa Department of Revenue — Declaration of Value Instructions (form 57-011) — the filing rule, the exemption list with the Department's notes on which still require the form, and the line-by-line instructions.
- Iowa Department of Revenue — Declaration of Value (form 57-006) — the form itself.
- Iowa Department of Natural Resources — Groundwater Hazard Statement (form 542-0960) — the statement filed with the declaration where a listed hazard exists.
Tax amounts checked against the Iowa Code and the Department of Revenue's instructions on September 3, 2026.