Credits & Exemptions
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’s also the property owner’s responsibility to report to the Assessor when they are no longer eligible for any credit or exemption they applied for. Following is a list of several credits and exemptions available in Iowa.
Homestead Tax Credit
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. File new applications for homestead tax credit with the Assessor on or before July 1 of the year the credit is 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)
Military Service Tax Exemptions
Iowa residents who meet one of the following service requirements are eligible for the exemption:
1. 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. A member of the Iowa National Guard who was activated for federal duty, other than training, for a minimum aggregate of ninety days, and was discharged under honorable conditions or was retired under Title X of the United States Code shall be included as a vetern.
2. Honorably discharged veteran who served in an eligible service period (Iowa Code Chapter 35)
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 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 $2,778 for WWI veterans and $1,852 for all other service periods. If the qualified veteran doesn’t 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)