Property Tax Credits

Iowa Homestead Credit


  • Description: Originally adopted to encourage home ownership through property tax relief, the current credit is equal to the actual tax levy on the first $4,850 of actual value.
  • Eligibility: You 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.
  • Filing Requirements: A claim must be filed on or before July 1. A claim is allowed for successive years without further filing as long as you are eligible.


Iowa Business Property Tax Credit


  • Description: a credit against taxes based on valuation, for commercial, industrial, and railroad property.
  • Eligibility: Parcels, or property units, must be classified and taxed as commercial, industrial, or railroad property. A property unit is defined in the law as "contiguous parcels all of which are located within the same county, with the same property tax classification, are owned by the same person, and operated by that person for a common use and purpose."
  • Filing Requirements:  A claim must be filed on or before July 1. A claim is allowed for successive years without further filing as long as you are eligible.


Iowa Disabled Veteran Homestead Credit


  • Description: A tax credit to a disabled veteran who qualifies under code of Iowa Chapter 425.15.
  • Filing Requirements: Iowa residents who are an owner of a homestead property, and meet one of the following eligibility criteria are eligible for this credit which is equal to 100% of the actual tax levy.

    1a. A veteran of any of the military forces of the United States, who acquired the homestead under 38 U.S.C. §21.801, 21.802, or 38 U.S.C. §2101, 2102.

    1b. A veteran as defined in Section 35.1 with a permanent service-connected disability rating of 100%, or a permanent and total disability rating based on individual unemployability that is compensated at the 100% disability rate.

    1c. A former member of the National Guard of any state who otherwise meets the service requirements of Iowa Code section 35.1, subsection 2, paragraph "b", subsection (2) or (7), with a permanent service-connected disability rating of 100%, or a permanent and total disability rating based on individual unemployability that is compensated at the 100% disability rate.

    1d. An individual who is a surviving spouse or a child who is receiving dependency and indemnity compensation (DIC) pursuant to 38 U.S.C. §1301 et seg.

    To get this credit, the applicant needs to file an application with the Assessor on or before July 1 of the year the credit is first claimed, along with a DD214 and a current Benefits Paid letter issued within 12 months of the application date. Once the application is approved, reapplication for successive years is not required as long as the property is owned by someone who falls under one of the four categories of 'owner' listed in Iowa Code section 425.15, and used as a homestead by that person on July 1 of each of those successive years.

    A surviving spouse of a veteran receiving the disabled veteran homestead tax credit also continues to receive the credit, as long as the spouse lives in the homestead and does not remarry.

    Written notification must be provided to the assessor if the circumstances change which would result in a taxpayer being ineligible for the credit, or conveyance of this property, or its discontinued use as your homestead.

    The Veteran who qualifies for the Disabled Veteran Homestead Tax Credit may not claim a military service tax exemption on any property located in Iowa. 


Iowa Ag Land Credit


  • Description: This credit was established to partially offset the school tax burden borne by agricultural real estate. Current law allows a credit for any general school fund tax in excess of $5.40 per $1,000 of assessed value.
  • Eligibility: All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of 10 acres or more.
  • Filing Requirements: Land owners are not required to file a claim. The county auditor determines the amount of credit applicable to each tract of land.

Iowa Family Farm Land Credit


  • Description: Credit established to partially offset the school tax burden borne by agricultural real estate. Current law allows a credit for any general school fund tax in excess of $5.40 per $1,000 of assessed value.
  • Eligibility: All land used for agricultural or horticultural purposes in tracts of 10 acres or more and land of less than 10 acres if contiguous to qualifying land of more than 10 acres. The owner or designated person must be actively engaged in farming the land.
  • Filing Requirements: Claims must be filed with the assessor by November 1. Subsequent claims are not required if ownership and designated person actively engaged in farming remain the same.