Selling land with back taxes in Iowa

How Iowa handles unpaid property taxes

Iowa sells tax lien certificates. An investor pays your overdue taxes and gets a lien with interest. You still own the land, but if the lien is not paid off, you can lose it through the process in the rule below. Paying off the lien, including from a sale, clears it.

The redemption rule in Iowa: The owner can redeem until 90 days after the certificate holder completes service of a notice that the right of redemption will expire. For a regular tax sale, the holder can serve that notice 1 year 9 months after the sale. It can be served after 9 months for a public bidder sale, held for land that went unsold for a year or more. It can be served after 3 months for special sales of vacant lots and abandoned homes meant for housing use. Redeeming costs the sale amount plus 2% interest per month, counting part of a month as a full month, plus later taxes the holder paid. If no one redeems in time, the treasurer issues a tax deed to the holder.

Law: Iowa Code 446.18, 446.19A, 446.19B, 447.1, 447.9, 447.12 and 448.1. Rules change, so confirm with the county tax collector.

What to do before the tax sale

• Call the county tax office and get the exact amount owed and the next sale date.
• Decide whether you want to keep the land. If not, selling before the sale stops the interest and penalties from growing.
• Gather the parcel number and any tax bills. A buyer and the title company need them to order a payoff.

Iowa land at a glance

• Average farm real estate value: $10,100 per acre (2026, USDA).
• Average property tax on farmland: about $22.02 per acre per year (2022 Census of Agriculture).
• Transfer tax: $0.80 per $500 of consideration (or fraction) above the first $500, about $1.60 per $1,000 (0.16%). No tax if no consideration.
• Seller disclosure: Iowa real estate disclosure law applies to transfers of property with 1 to 4 dwelling units, so vacant land is outside it.

These are statewide averages, not an appraisal. See selling land in Iowa for county values, or try the land value estimator.

How a cash sale handles this

Liberty Acres is a family-owned cash land buyer. We buy land anywhere in the US, in any condition, including land with back taxes, inherited land and land with no road access. We pay back taxes and all closing costs, use no agents and charge no commissions, and close through a title company, escrow company or real estate attorney who pays you by wire or check.

Common questions