If you’re an Iowa homeowner, you may be eligible for the Homestead Tax Credit—a valuable property tax benefit designed to reduce the taxable value of your primary residence. This credit can lead to significant savings on your annual property tax bill.
What Is the Iowa Homestead Tax Credit?
The Homestead Tax Credit is a state-funded program that provides property tax relief to eligible homeowners. Specifically, it reduces the taxable value of your home by up to $6,500, effectively lowering the amount of property tax you owe.
Eligibility requirements include:
- Ownership and occupancy of the property as your primary residence on July 1 of the assessment year.
- Residency in Iowa for income tax purposes.
- Occupancy of the property for at least six months each year.
Additionally, homeowners aged 65 or older on or before January 1 of the assessment year may qualify for an additional homestead exemption, which further reduces the taxable value of the property.
Important Deadline: July 1
To take advantage of the Homestead Tax Credit for the current assessment year, you must submit your application to your local assessor’s office by July 1. Applications received after this date will apply to the following assessment year.
Once approved, the credit remains in effect for as long as you continue to own and occupy the property as your primary residence. However, if you move, sell the property, or no longer meet the eligibility criteria, you must notify your assessor’s office.
How to Apply
To apply for the Homestead Tax Credit, complete the Homestead Tax Credit and Exemption form (54-028) and submit it to your city or county assessor’s office.
For more information and to access the application form, visit the Iowa Department of Revenue’s website.
Don’t miss out on this opportunity to reduce your property tax burden. Ensure your application is submitted by July 1 to benefit from the Homestead Tax Credit for the current assessment year.
Have other questions regarding your home or interested in buying/selling? Contact me today and we’ll schedule a call or coffee – 515-205-9931!