A bomber detonated an explosives-laden vehicle at a security checkpoint at the northern entrance of al-Khalis town, lieutenant Mahmoud al-Dalwi said.
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The Islamic State (IS) militant group has issued a statement, claiming responsibility for the attack in downtown Baghdad.
Col Attiyah said the checkpoint was crowded with cars, and that a number of them were burnt in the blast.
In Iraq, at least 17 people including women and children were killed in a suicide vehicle bomb attack in Khalis, about 70 kilometers north of Baghdad.
Earlier this month 292 people were killed in another suicide attack in central Baghdad, one of the largest attacks of its kind since the US-led invasion in 2003.
This latest suicide bombing comes on the heels of the July 3 terror attack in Baghdad, considered the worst in recent history. In that Karrada attack, a suicide truck drove in to a busy shopping area and killed almost 300 people.
Hospital sources said the death toll was expected to rise, Reuters reported.
It is not yet known who was behind the bombing in Khalis, a predominately Shia town about eight miles north of Baquba, the main city of Diyala province.
A medical official confirmed the casualty figures.
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ISIS claimed responsibility for the attack on its social media accounts.
