Tax Credits

Homestead Tax Credit

Any property owner in the State of Iowa who lives in the property can receive a homestead tax credit. To be eligible, a homeowner must occupy the homestead any six months out of the year, but must reside there on July 1. This exemption is a reduction of the taxable value of their property amounting to a maximum $4,850 or the amount which does not allow the taxable value to be less than zero.

Disabled veterans are allowed to claim a homestead credit that would be equal to the entire amount of taxes levied on the homestead property. The exemption is not allowed if the combined income of the veteran and their spouse, if any, exceeds $25,000 in the prior income tax year. Income means taxable income for federal income tax purposes plus income from any political subdivision exempt from federal income tax. See Code of Iowa Chapter 425.

Family Farm Tax Credit

This credit is available to all farm operators who own and operated farm land, or farm land owned by a family member such as parents, children, grandparents, grandchildren, brother, sister, aunt, uncle, niece, nephew. Cousins DO NOT qualify.

This credit must be applied for annually between July 1st and October 15th. Contact the Assessor's office for more information on the complexities of this law. See Code of Iowa Chapter 425A.

Iowa Rent Reimbursement

In addition to the homestead tax credit allowed under section 425.1, subsections 1 to 4, persons who own or rent their homesteads and who meet the qualifications provided in this division are eligible for an extraordinary property tax credit or reimbursement. See Code of Iowa Chapter 425.16.