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Iowa

You may be eligible to receive money back

Homeowners and renters are missing out on millions of dollars in tax relief.  Use the resources below to learn more.

Iowa Program Overview

Property Tax-Aide features three widely available property tax relief programs for older Iowa residents, with one specifically for renters. They are the Homestead Tax Credit and Exemption, Property Tax Credit, and Rent Reimbursement programs.

The information on this page is updated as new information becomes available by the relevant tax agencies.

Homestead Tax Credit and Exemption

The current credit is equal to the actual tax levy on the first $4,850 of actual value. In addition, eligible claimants 65 years or older are now eligible for a homestead exemption. For the assessment year beginning January 1, 2023, the exemption is $3,250. For assessment years beginning on or after January 1, 2024, the exemption is for $6,500.

Eligibility

  • Applicant must own and occupy the property as a homestead on July 1 of each year.
  • Applicant must occupy the property for at least 6 months each year.
  • The owner must declare residency in Iowa for income tax purposes.
  • Need to certify that a smoke detector and carbon monoxide alarm, if needed, have been installed.
  • Those 65 or older as of January 1 of this assessment year are now eligible for an additional exemption.

Application Deadline

Claim must be filed on or before July 1 and submitted to the city or county assessor. Claim is allowed for successive years without further filing as long as eligible.

A claim filed after July 1 of the year for which the person is claiming the credit or exemption shall be considered a claim filed for the following year.

Required Documentation

  • Homestead Tax Credit and Exemption application (form 54-028)

Additional Information & Resources

For more information, please refer to the Homestead Tax Credit and Exemption webpage or consult your county assessor.

A listing of the county assessors can be found on the Assessors of Iowa Map

Property Tax Credit

A credit is available for homeowners aged 65 or older. The credit is a percentage of property taxes, depending on your age and income. The maximum credit is limited to $1,000. Eligible income levels are different for those 65-69 and for those 70 or older.

Eligibility

  • Must be an Iowa resident as of December 31 of the year of the claim
  • Property owner’s total household income is less than $25,328 for those between the ages of 65 and 69.
  • For those 70 or older, the income limit is based on the 250% federal poverty level, which takes into account the number of persons in family or household, which for 2023 is $33,975 for single-person households and $45,775 for two-person households.

Application Deadline

Application form submitted to county treasurer on or before June 1, 2024. The treasurer may extend the filing deadline to March 31, 2025.

Required Documentation

  • The application requires that the Social Security number of the applicant and spouse must be included.
  • Income statement is included in the application.

Additional Information & Resources

Additional details can be found at https://tax.iowa.gov/tax-credits-and-exemptions

For questions about this program, please consult your county treasurer.

Homeowners file their applications with the County Treasurer. The location and contact information of your county treasurer can be found at the Iowa Treasurers website: www.iowatreasurers.org

Rent Reimbursement

People who pay rent in buildings that are not tax exempt may receive reimbursement of up to $1,000 of the gross rent paid each year.

Eligibility

  • You are 65 years of age or older, or disabled and 18 or older.
  • Must have lived in Iowa and still live in Iowa now.
  • You paid rent in Iowa at a property that pays property tax. If uncertain that building is subject to property taxes, ask your landlord or county treasurer.
  • To be eligible for Rent Reimbursement for claim year 2021, your total annual household income must be less than $24,354.
  • To be eligible for Rent Reimbursement for claim year 2022 and 2023, your total annual household income must be less than $25,328

Application Deadline

  • Rent Reimbursement claim for 2023 can be filed until December 31, 2025.
  • Rent Reimbursement claim for 2022 can be filed until December 31, 2024.
  • Rent Reimbursement claims for 2021 can be filed until December 31, 2023.
  • Applications are submitted to Iowa Department of Health and Human Services

Required Documentation

Proof of identification, such as:

  • Driver’s license
  • Social Security card
  • Birth certificate
  • Passport

Proof of household income, such as:

  • Pay stubs
  • W-2 statements, or verification of self-employment
  • Cashed checks
  • HUD or Section 8 award letter

Proof of rent payments, such as:

  • HHS Form Number 470-5713 Rent Reimbursement Landlord Rent Verification
  • Copy of lease showing rent amount
  • Rent receipts or canceled checks from each month
  • A ledger from the rental office
  • Signed letter from your landlord with rent paid. (Include their name, address & phone number)

Proof of disability (if under 65), such as:

  • SSA 1099 form showing your name
  • VA Disability Award Letter

Additional Information & Resources

For more information on this program, including application assistance services, please visit https://benefits.stateofiowahhs.org/program/rentreimbursement

Call to speak with the Rent Reimbursement team at 515-420-6077

Property Tax Suspension for SSI and SSA Recipients

Homeowners who get Supplemental Security Income (SSI), or State Supplemental Assistance (SSA), or live in a health care facility which is receiving payment from the Department of Health and Human Services for the person’s care, can get their property taxes suspended. The suspension lasts until the property is sold or transferred or until the person no longer receives SSI, SSA, or assistance for living in a healthcare facility. A suspension of the taxes remains in place until DHS will send the county a letter saying the individual pas passed away or no longe qualifies. Suspended taxes remain a lien on the property and must be repaid

Eligibility

  • To prove eligibility for the suspension, you should get a Notice of Decision from the Iowa Department of Health and Human Services that will say that you are eligible for property tax suspension.
  • Take the Notice of Decision to your County Board of Supervisors and the Board will order the County Treasurer to suspend your taxes.
  • If you receive a tax suspension, you may also qualify for the tax exemption and the elderly and disabled property tax credit. You should apply for the exemption and the credit, as well as the suspension, since the exemption and credit will eliminate part of their tax liability, while a suspension merely delays payment.
  • Prior to applying for the suspension, homeowners with a mortgage or reverse mortgage should consult with the mortgage holder to be assured that the suspension does not violate the terms of the mortgage. Failure to do so could result in foreclosure.
  • The Board of Supervisors will annually verify the continued eligibility with the tax suspension.

Additional Information & Resources

Request for a suspension should be submitted to the County Board of Supervisors. The Board will order the County Treasurer to suspend the taxes. There is no formal application.

The information above can also be found on the Iowa Department of Human Services Important Notice to Property Owners and Renters webpage

County Board of Supervisors
Phone: 319-642-3041

Property Tax-Aide has independently selected the property tax relief programs featured on this website that we think are the most relevant and beneficial to older adults. It is not an exhaustive list of all property tax relief programs available in each state. Please consult your local tax agency for a comprehensive listing of property tax relief programs in your area.

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