Updated October 8, 2026. Quick answer: No. Iowa is a common law state. At divorce, “The court shall divide all property, except inherited property or gifts” equitably (Iowa Code 598.21), and at death the surviving spouse has an elective share of one-third of listed property. The IRS lists nine community property states.
Iowa community property at a glance
| Item | What the documents say |
|---|---|
| Regime | Common law |
| At divorce | All property except inherited property and gifts is divided equitably (Iowa Code 598.21) |
| At a spouse’s death | An elective share of one-third of listed real property, personal property and revocable-trust property (Iowa Code 633.238) |
| Federal basis at the first death | A qualified joint interest between spouses: one-half is included in the estate and steps up |
| Source | Iowa Legislature; IRS Publications 551 and 555; 26 U.S.C. 1014 |
What the Iowa statutes say
Iowa’s divorce statute divides property “equitably between the parties after considering all of the following” factors, among them the length of the marriage and each party’s contribution. Inherited property and gifts are that party’s own and are not divided unless refusing to divide would be inequitable to the other party or the children.
At divorce in Iowa
Equitable is not equal: the court weighs the factors in section 598.21(5).
At a spouse’s death in Iowa
Under Iowa Code 633.238, the elective share is “One-third in value of all the legal or equitable estates” in real property the decedent possessed during the marriage, plus “One-third of all personal property of the decedent” not needed for debts and charges and one-third of certain revocable-trust property, and it takes “in lieu of any property the spouse would otherwise receive” under the will.
What it does to basis when the first spouse dies
Because Iowa is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.
Computed illustration, not tax advice: suppose an Iowa couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.
What the documents do not say
- The sections read do not state a rule for a couple who moved to Iowa.
- Section 633.238 does not scale the share by length of marriage.
Common mistakes
- Assuming the one-third applies to every kind of property; the section lists real property, personal property and certain revocable-trust property.
- Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.
Related: why only half steps up in a common law state, Iowa retirement taxes, and Iowa probate cost.
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Answer againSources
- Section 598.21 Orders for disposition of property, Iowa Code 2026: https://www.legis.iowa.gov/docs/code/598.21.pdf
- Section 633.238 Elective share of surviving spouse, Iowa Code 2026: https://www.legis.iowa.gov/docs/code/633.238.pdf
- IRS Publication 551, Basis of Assets (December 2025): https://www.irs.gov/pub/irs-pdf/p551.pdf
- 26 U.S.C. 1014, Basis of property acquired from a decedent (United States Code, 2024 Edition): https://www.govinfo.gov/link/uscode/26/1014?link-type=html
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.