New Iowa Homestead Tax Exemption

June 5, 2023

Iowa homeowners who are at least 65 years old can benefit from a new state law, but they must file paperwork soon to qualify for this year.

The new law established a homestead tax exemption, which is in addition to the previously established homestead tax credit.

Who qualifies for the exemption?

The state Department of Revenue reports that the exemption is open to Iowa homeowners who are at least 65 years old at the beginning of an assessment year.

How much is it for?

This year, the exemption is for $3,250 of taxable value. Starting in 2024, it doubles to $6,500 of taxable value.

The state agency notes that “an exemption is a reduction in the taxable value of the property rather than a direct reduction in the amount of property tax you pay.”

How do I apply?

An application for both the homestead tax credit and the new exemption is available online at Homestead Tax Credit and Exemption, 54-028 (iowa.gov).

Applications must be submitted to your city or county assessor by July 1 for the exemption to be given for this year. Applications received after that date will be treated as requests for an exemption next year. 

For questions regarding the homestead tax credit, contact us.