Police officials said the attack took place this afternoon in Baghdad's mainly Shiite southeastern suburb of Nahrwan.
More than 5,000 people have been killed in Iraq since violent attacks began accelerating in April following a deadly security crackdown against a Sunni protest camp in Hawija town.
Medical officials in nearby hospitals confirmed the casualty figures.
All officials provided details of the violence on condition of anonymity as they were not authorized to release information.