A new law signed by Gov. Kim Reynolds gives seniors and veterans in Iowa a property tax break
On May 4th, Governor Kim Reynolds announced a new law signed the prior day by an overwhelming majority impacting the property tax exemptions for Iowa’s seniors and veterans.
Both of these new laws will help Iowans reduce their tax liability and keep more money in their pockets. Be sure to follow up with your situation to see if you qualify for these. Questions can be directed to your local assessor’s office.
For seniors
The new law gives Iowans aged 65 and older a property tax exemption worth $3,250 in 2023 and $6,500 in subsequent years. To receive the credit, the application form must be received by your local assessor’s office by July 1st. The application form (Homestead Tax Credit and Exemption 54-028) can be found at tax.iowa.gov/forms.
For veterans
Additionally, the law impacts Iowa’s veterans as well by increasing the property tax exemption from $1,852 to $4,000 per year. There is no action needed for this if the veteran is already receiving the exemption. However, it may be good to contact your assessor’s office to ensure you are getting this if applicable to your situation. The application form (Military Service Property Tax Exemption 54-146) can be found at tax.iowa.gov/forms.
You can read more about this in this article in the Des Moines Register.
Iowa homeowners who are 65 and older qualify for the senior homestead property tax exemption. It started at $3,250 of assessed value in 2023 and moved up to $6,500 in the years after. It's a nice little break, but it isn't automatic, so you have to actually apply for it.
You file the Homestead Tax Credit and Exemption form, number 54-028, with your local assessor's office. The deadline to have it in is July 1. You can find the form on the Iowa Department of Revenue site at tax.iowa.gov, and once you're approved you don't have to reapply every year.
This law bumped the military service exemption up from $1,852 to $4,000 per year of assessed value. If you're already receiving the veterans exemption, you don't have to do anything to get the increase. It just applies. That said, it's worth a quick call to your assessor to confirm you're actually getting it.
No. Once you're approved for the homestead exemption or the military service exemption, it carries forward. The thing to watch is that first application. If you've never claimed it, or you just turned 65, that's when you need to get the paperwork in by the July 1 deadline.
Your local county assessor's office is the right first stop, since they handle these applications and can tell you exactly what your situation calls for. Every county runs things a little differently. If you'd like a second set of eyes on how this fits your overall plan, just give us a holler.