Hey there, Iowa homeowners (and future homeowners)! If you own your primary residence in Iowa, you could be eligible for a tax break that helps keep more money in your pocket—the Iowa Homestead Tax Credit.
This credit is an easy way to lower your property tax bill, but you have to apply to get it! Let’s break it down so you don’t miss out on these savings.
What Is the Iowa Homestead Tax Credit?
The Iowa Homestead Tax Credit is a property tax reduction available to homeowners who live in their homes as their primary residence.
Who Qualifies for the Homestead Tax Credit in Iowa?
To be eligible, you must:
✔️ Own and occupy the home as your primary residence on or before July 1 of the year you apply.
✔️ Apply with your local county assessor before the deadline (more on that below).
✔️ Not claim the credit on another property—it’s for your primary home only.
Good news! Once you’re approved, the credit automatically renews each year, as long as you continue to live in the home.
How Much Can You Save?
The credit applies to $4,850 of your home’s taxable value. Since property taxes in Iowa vary by county and local levy rates, the exact savings will differ.
For example:
• If your home is assessed at $200,000, the taxable value will be reduced to $195,150 before your property taxes are calculated.
• Depending on your county’s tax rate, this could save you around $100–$200 per year—not a life-changing amount, but definitely worth claiming!
How to Apply for the Iowa Homestead Tax Credit
Applying is easy and free! Here’s how to do it:
1️⃣ Download the application – You can find the Iowa Homestead Tax Credit application on your county assessor’s website or pick one up at their office.
2️⃣ Fill it out and submit it – Complete the form and return it to your local assessor’s office by July 1 of the year you want the credit to apply.
3️⃣ Provide proof of residency – Some counties may ask for additional documentation, like a driver’s license or utility bill, to confirm you live in the home.
After applying, the credit should appear on your property tax statement starting the following year. Once approved, you don’t have to reapply unless you move or make changes to your property ownership.
Don’t Miss Out on This Easy Tax Break!
If you own a home in Iowa, there’s no reason to leave this money on the table. The Homestead Tax Credit is a simple way to lower your tax bill, and it only takes a few minutes to apply.
Have questions about property taxes, buying a home, or maximizing your savings as a homeowner? I’m here to help! Reach out anytime, and let’s make sure you’re getting every benefit you deserve.
Until next time, happy home-owning!
— Allison Hart, Your Trusted Iowa Real Estate Expert
Phone: 515-210-5198
