Iowa Homestead Tax Credit

There are a number of different property tax exemptions available to Iowans. One of the most popular is the homestead tax credit.

The homestead exemption is a property tax exemption that exempts a portion of your home’s value from being taxed. In Iowa, the homestead exemption covers the first $4,850 of a home’s net taxable value. You can apply for this exemption once per household. Applying as soon as possible is a good idea because life gets busy, and you may miss the deadline!

Iowa Homestead Tax Credit Eligibility

The homestead tax credit is a reduction in your property’s net taxable value that is funded by the state. It is available to Iowa property owners who meet certain requirements. You must be an Iowa resident, declare the property as your homestead, and live in it for six months of the year. You must also file an application for the credit by July 1 each year. In addition, you must own the property and pay Iowa income taxes. Disabled veterans, nursing home residents, and members of the military are also eligible for this exemption.

You must submit an application for the credit each year by July 1. If this date falls on a Saturday or Sunday, the application may be submitted the following Monday. The application must be signed by the owner or their qualified designee. The credit is valid for successive assessment years as long as you continue to meet the eligibility requirements. If you cease to qualify for the credit, you must notify the assessor in writing.

How to Apply for Iowa Homestead Tax Credit
Iowa Homestead Tax Credit 1

How to Apply for Iowa Homestead Tax Credit?

The good news is you don’t need to reapply for the Iowa Homestead Tax Credit every year if you already qualified and remain eligible. It automatically renews as long as you meet the requirements. However, if you haven’t applied before or recently purchased a home in Iowa, here’s what you need to do:

Filing:

  1. Obtain the Homestead Tax Credit and Exemption Form (Form 54-028) from your county assessor’s office or the Iowa Department of Revenue website [Iowa Department of Revenue homestead exemption ON Iowa.gov].
  2. Complete the form and submit it to your county treasurer’s office by July 1st. You can usually file online, mail it in, or drop it off in person.

If you miss the July 1st deadline, you might still be eligible to file late with a penalty. Contact your county treasurer’s office for details. Since May 2023, individuals 65 years or older on January 1st of the assessment year may also qualify for a separate Homestead Tax Exemption alongside the credit. This exemption applies to a portion of the property’s taxable value.

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