Knowledge of the long-term effects of tillage on soil organic carbon is important to our understanding of sustainable agricultural systems and global carbon cycles. In landscapes susceptible to erosion, tillage can exacerbate losses of soil and C by increasing erodibility and stimulating microbial respiration. We measured long-term changes in soil carbon and soil loss in three small watersheds located in southwest Iowa, USA. The following soil series were formed on deep loess hills: Ida and Dow (Typic Udorthents), Napier and Kennebec (Cumulic Hapludolls) and Monona (Typic Hapludolls). All watersheds were cropped to continuous corn ( Zea mays L.) and two were moldboard plowed and disk tilled while the third was ridge-tilled. The ridge-tillage system had greater C contents in the surface soil than the disk tillage soils, but ridge-tillage was not different from the conventional tillage in carbon retention over time. The ridge-tillage system, however, was more effective in retaining soil within the watershed. Microbial respiration by soil microorganisms accounted for 97% of the carbon loss in the ridge-tilled watershed compared to carbon loss in eroded sediment (3%). Terrain analysis was used to segment the landscape into landform elements. Less total carbon was present in the soil profiles of backslope elements than in footslope or toeslope elements, reflecting the combined effects of soil erosion and deposition within the watersheds. Profile C content was also positively correlated with the wetness index, a compound topographic attribute, that identifies areas of the landscape where runoff water and sediment accumulate.