Iowa law provides for a number of credits and exemptions. It is the property owner's responsibility to apply for these as provided by law. It is also the property owner's responsibility to report to the Assessor when he or she is no longer eligible for any credit or exemption previously applied for. Please visit the Assessor's Office to complete application forms for any credit or exemption being claimed.

The following is a list of several credits and exemptions available in Iowa:

FOREST AND FRUIT TREE RESERVATIONS EXEMPTION

This application must be filed or postmarked to your county assessor on or before February 1 of the exemption year. Once the application has been accepted, the exemption is applicable to the current and subsequent assessment years and no further application shall be required so long as the property remains eligible for the exemption.

Application
Iowa Code Chapter 427C

HOMESTEAD TAX CREDIT AND EXEMPTION

To qualify for the credit, the property owner must be a resident of Iowa and occupy the property on July 1 and for at least six months of every year. New applications for homestead tax credit are to be filed with the Assessor on or before July 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. This credit reduces the value on which taxes are calculated by a maximum of $4,850 (Refer to Code of Iowa, Chapter 425).  In addition to the homestead tax credit, eligible claimants who own the home they live in and are 65 years of age or older on or before January 1 of the assessment year are now eligible for a homestead tax exemption. For the assessment year beginning on January 1, 2023, the exemption is for $3,250 of taxable value. For assessment years beginning on or after January 1, 2024, the exemption is for $6,500 of taxable value. 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.

Application

DISABLED VETERAN HOMESTEAD CREDIT

Veterans with 100% service-related disability status qualify for this credit. Veterans also qualify who have a permanent and total disability rating based on individual un-employability paid at the 100% disability rate. The veteran must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. A surviving spouse of a disabled veteran receiving DIC payments also qualifies. The surviving spouse as a beneficiary of the estate of a veteran who received the credit may continue to receive the credit as long as the spouse resides in the qualified homestead and does not remarry. Claim must be filed on or before July 1. A current Benefits Paid letter and DD214 must be included with your application (Refer to Code of Iowa, Chapter 425.15).

Application, Other Information, Questions

MILITARY SERVICE TAX EXEMPTION

Iowa residents who meet one of the following service requirements are eligible for the exemption:

  • Honorable discharged veteran who served for a minimum aggregate of eighteen months.
  • Honorable discharged veteran who served for fewer than eighteen months because of a service related injury.
  • Honorable discharged former member of Reserve Forces or Iowa National Guard who served at least 20 years.
  • Member of Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve.
  • Honorable discharged former member of the Armed Forces if any portion of their term of enlistment would have occurred within the Korean Conflict but who opted to serve 5 years in the reserve forces as allowed by federal law.
  • Honorably discharged veteran who served in an eligible service period (Iowa Code Chapter 35).
Eligible Service Dates:

  • WW 1 - April 6, 1917 through Nov 11, 1918
  • Occupation of Germany - Nov 12, 1918 through July 11, 1923
  • American Expeditionary Forces in Serbia - Nov 12, 1918 through April 30, 1920
  • Second Haitian Suppression of Insurrections - 1919 through 1920
  • Second Nicaragua Campaign with Marines or Navy - 1926 through 1933
  • Yangtze Service with Navy and Marines - 1926 through 1927 and 1930 through 1932
  • China Service with Navy and Marines - 1937 through 1939
  • WW II - Dec 7, 1941 through Dec 31, 1946
  • Korean - June 25, 1950 through Jan 31, 1955
  • Vietnam - Feb 28, 1961 through May 7, 1975
  • Lebanon on Grenada Service - Aug 24, 1982 through July 31, 1984
  • Panama Service - Dec 20, 1989 through Jan 31, 1990
  • Persian Gulf - Aug 2, 1990 through Still Open
Application must be made with the Assessor on or before July 1 of the year the exemption is first claimed. The military certificate of satisfactory service, order transferring to inactive status, reserve, retirement, order of separation from service, or honorable discharge must be recorded in the Office of the County Recorder. Members of the Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve shall record the veteran's retirement points accounting statement issued by the armed forces of the United States, the state adjutant general, or the adjutant general of any other state. The exemption from taxation is $4000 for all service periods. If the qualified veteran does not claim the exemption the spouse, unmarried widow(er), minor child or widowed parent may be eligible to claim the exemption (Refer to Iowa Code Chapter 426A).

Application

FAMILY FARM TAX CREDIT

This is a tax credit on agricultural tracts of land 10 acres or more that are farmed by the owner or immediate family members (this includes brothers/sisters, sons/daughters, grandchildren, great-grandchildren, uncles/aunts, nephews/nieces). Beginning July 1, 2001, this tax credit went to a one-time signing. New applications for family farm tax credit are to be filed with the Assessor on or before November 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. Applications are taken in the Assessor's Office (Refer to Iowa Code Chapter 425A).

Application