Iowans Can Now Pay Taxes With Their Phones, Online

Iowa continues to be a standout example of innovation in government, adopting new technologies to inject money back into the economy by making their processes faster and more cost-effective for citizens. Earlier this year, we proudly announced our government payments partnership with the state of Iowa, assisting retailers in paying a potential $130 million in certain retail taxes.

Starting later today, we’re thrilled to announce our partnership with Together, we’ll help them process up to 1.2 million tax payments as an online and mobile payment option for eligible residents.

Enjoy the convenience of paying online, without being charged high fees to do so. Currently, paying a $225 car registration fee with a credit or debit card online would result in an additional processing fee of $6.82 or $5.45, respectively (see their fee calculator to compare costs). If you pay online with Dwolla, the only additional charge will be a administrative fee of $0.30 or $0.40, depending on the county in which you reside.

And, because you’re paying with Dwolla, you’ll be able to create a payment from your bank or credit union account without sharing the sensitive banking information typically found on a check or credit card.

How it came about:

The idea for the integration spawned from a hackathon that Dwolla hosted in December of last year. Two IowaTaxAndTags employees joined our 36-hour coding session and ended up building a way for Iowans to easily pay their taxes with Dwolla. They took the idea back to IowaTaxAndTags  and proceeded to build the Dwolla network into the vendor’s platform.

Today, IowaTaxAndTags is now accepting Dwolla for in-person mobile payments and online check transfers for property tax and car registration taxes.

How it works:

Paying online at*

  • Select the Dwolla payment option at checkout

  • Sign in to Dwolla

  • Authorize a payment from a linked bank or credit union account, or Dwolla balance (Dwolla does not share your financial data with

*Users must pay through the IowaTaxAndTags website.

Mobile (in-person) tax payments

  • User adds funds to their Dwolla account from linked bank or credit union account

  • Download Dwolla’s free iOS or Android application

  • Users can submit payments at their county treasurer’s office by logging into the Dwolla app, finding the location with the “Around Me” option or search for the office by name.

  • When prompted, enter the amount and authorizing the transaction

Hi-Res-Mobile-Screen-Shot-of-Polk-County-Iowa-Tax-and-Tags services nearly a third of Iowa’s citizens. Residents in Buchanan, Clayton, Dickinson, Floyd, Iowa, Johnson, Linn, Montgomery, Polk, Pottawattamie, and Poweshiek are all eligible to pay with Dwolla.

Check out for more information.

Want to get your government involved? Let them know.

  • Adam

    this is sweet. if only they had it 2 weeks ago when i paid. damn fees.

  • Luke Bodeen

    now if dwolla can work out hooking to money market accounts?

    • CaityJones

      Hey Luke – As long as you have a US routing and account number, it should work on Dwolla’s side. However, it may depend on your financial institution and the rules they have set around their money market accounts.

  • Tony Parodi Camero

    Hey Caitlin! I am working on a local government/community solution in Fairfield, Iowa (in part) through use of the Dwolla API. I need someone who can help me enroll our local FIs into FiSync. Who is that person?

    • CaityJones

      Hey Tony! I believe I just replied to an earlier comment of yours, but feel free to shoot me an email to with a little information about what you’re working on and I’d be happy to get you connected with the right people!

Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.