Iowa Property Tax: Rates, Home Values, and Comparisons

This article summarizes property‑tax information for the state of Iowa using data from the U.S. Census Bureau's American Community Survey (ACS). All figures are from the 5‑year estimates for 2023 unless otherwise noted.

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Overview

The property tax in Iowa is levied by local governments—counties, cities, school districts, and special districts. The revenue funds public services such as education, public safety, and infrastructure. Because the tax is imposed at the local level, rates can differ noticeably from one county to another.

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Effective Iowa Property Tax Rate

Definition – The effective property tax rate is the median tax amount paid divided by the median home value, expressed as a percentage. It provides a comparable measure across jurisdictions with different assessment practices.

How the rate is calculated

According to U.S. Census Bureau data, the median home value in Iowa is $195,900. Dividing the median annual tax of $2,795 by this value yields the 1.43 % effective rate.

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Median Home Value

• Median home value (ACS 2023): $195,900

This figure represents the middle value of owner‑occupied housing units in Iowa and is used as the denominator when calculating the effective tax rate.

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Example Property‑Tax Bills

Using the average effective Iowa property tax rate of 1.43 %, the following illustrative calculations show what a homeowner might expect to pay on two common price points:

These examples assume the statewide average rate and do not account for local variations, exemptions, or assessment differences.

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Variation by County

Property‑tax rates in Iowa are set by each county and other local taxing entities. As a result:

• Some counties have rates above the state average of 1.43 %, while others are below it.
• Additional levies for schools, municipalities, or special districts can increase the overall tax burden on a single property.

Prospective buyers should consult the specific county assessor’s office or the Iowa Department of Revenue for the most accurate rate for a given location.

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Comparison to the National Average

Interpretation – Iowa’s effective property tax rate is 47.43 % higher than the national average. The state ranks 43rd out of the 52 U.S. states and territories that report comparable data.

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Considerations for Retirees

• Tax burden: The higher-than‑average effective rate means retirees may pay more in property taxes relative to the national average, especially if they own higher‑valued homes.
• Exemptions: Iowa offers a senior property‑tax credit and a homestead deduction for qualifying residents age 65 or older. Eligibility depends on income and filing status.
• Overall cost of living: Property taxes are only one component of the cost of living; other expenses such as health care, utilities, and groceries also influence retirement affordability.

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Considerations for Landlords

• Revenue impact: The 1.43 % effective rate directly affects the operating expenses of rental properties. Landlords should incorporate the expected tax amount into cash‑flow analyses.
• Assessment frequency: Iowa counties reassess property values periodically (typically every five years). Changes in assessed value can increase or decrease the tax bill for rental units.
• Local variations: Because rates differ by county, landlords with properties in multiple jurisdictions may experience disparate tax costs across their portfolio.

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Frequently Asked Questions

Q1: How often are property values reassessed in Iowa?
A: Most Iowa counties conduct a comprehensive reassessment every five years. Some counties may perform interim updates for significant improvements or changes to a property.

Q2: Are there any statewide exemptions that lower the property tax for homeowners?
A: Yes. Iowa provides a homestead exemption that reduces the taxable value of a primary residence by a set amount, and a senior property‑tax credit for qualifying residents age 65 or older. Additional exemptions may be offered by local jurisdictions for veterans, disabled persons, or agricultural land.

Q3: Where can I find the exact property‑tax rate for a specific Iowa county?
A: County assessor offices publish current millage rates and total tax levies on their websites. The Iowa Department of Revenue also maintains a searchable database of county‑level tax information.

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All figures are derived from the U.S. Census Bureau's American Community Survey (ACS) 5‑year estimates for 2023. For the most current data, consult the Iowa Department of Revenue or the appropriate county assessor.