Property Taxes in Iowa
Iowa's effective property tax rate is 1.23%, ranking #40 out of 50 states (1 = lowest). The median annual property tax paid is $2,522.
Iowa's property tax system includes a homestead credit that reduces your tax bill by a state-funded amount (currently around $645 annually) and a rollback percentage that limits the assessed value used for taxation. Residential property is assessed at approximately 54% of market value due to the rollback, which effectively lowers the tax burden. However, local rates vary significantly between school districts and cities — Des Moines suburbs like West Des Moines and Ankeny have different effective rates despite being in the same metro area.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
1.23%
Median Annual Tax
$2,522
National Rank
#40 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $2,460 | $205 |
| $300,000 | $3,690 | $308 |
| $400,000 | $4,920 | $410 |
| $500,000 | $6,150 | $513 |
| $750,000 | $9,225 | $769 |
* Based on the average effective rate of 1.23%. Actual rates vary by county and municipality.
Homestead Exemption in Iowa
Unlimited value, up to 1/2 acre in city
File for the homestead exemption after purchasing your primary residence in Iowa to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
