The attack took place 170 km (100 miles) north of the capital Baghdad in a region which both the central government and autonomous Iraqi Kurdistan region claim as theirs.
The second bomb went off as people were trying to help casualties of the first explosion, witnesses said. The district was busy because there was a mourning ceremony for someone who had died, said Mohammed Jawdat, one of the wounded.
"I was hurt in my leg and someone evacuated me in their car," he said.
Iraq is experiencing its deadliest wave of violence in at least five years. More than 1,000 people were killed in attacks in July, the highest monthly toll since 2008. Sunni Muslim al Qaeda insurgents battling the Shi'ite-led government have claimed most of the bombings.
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