Iowa out-of-state contractor bonds.
$275 flat.
An out-of-state (nonresident) contractor working in Iowa files a $25,000 surety bond to guarantee the Iowa taxes tied to its construction work. Ours is $275 flat — the price you see is the checkout price. No credit check. The original is mailed to you for signature before you file it.
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How much does an Iowa out-of-state contractor bond cost?
$275 at the $25,000 amount, the same for every applicant.
Three steps. One sitting.
Tax bonds like this are simple. Here's the entire process — note this one is mailed for a wet signature:
Apply online
Business details and an effective date. That is the application. No credit check.
Pay & issue
Bonds like this issue right after purchase. Because this bond is filed as a wet-ink original, the executed bond is then mailed to you.
Sign & file with Iowa DIAL
The original bond is mailed to your address. The principal signs it, then you file it with the Iowa Department of Inspections, Appeals, and Licensing before working as a nonresident contractor.
What it is and who needs it.
What the bond actually guarantees
Iowa wants assurance that an out-of-state (nonresident) contractor doing construction work in the state will pay its Iowa taxes — sales, use, and withholding tied to the job. This $25,000 tax bond is filed with the Iowa Department of Inspections, Appeals, and Licensing under Iowa Code 91C.2(3) as that financial guarantee.
If the contractor fails to pay taxes that come due, the Department of Revenue can recover against the bond the amount necessary to satisfy the tax. The contractor (or surety) gets notice and an opportunity to request a hearing; on failure to pay or timely request a hearing, the bond can be forfeited toward the tax.
This is the $25,000 bond Iowa Code chapter 91C requires when an out-of-state contractor registers: it is filed with the Department of Inspections, Appeals, and Licensing, and its condition is payment of the contractor’s Iowa taxes. A contractor prequalified with the Iowa DOT may file a statement of that prequalification instead of the bond.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
Sign & file with Iowa DIAL. The original bond is mailed to your address. The principal signs it, then you file it with the Iowa Department of Inspections, Appeals, and Licensing before working as a nonresident contractor.
What sets the price
The premium is fixed at $275 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check. This bond is filed as a wet-ink original, so the executed bond is mailed to you to sign before filing.
Start the application →Common questions.
Other Iowa bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Iowa’s contractor registration is waiting on one document.
$275 flat, no credit check, original mailed for your signature. Free until issued.