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AARP AARP States Iowa

Older Iowans can apply for new property tax exemption until July 1

Iowans age 65+ have until July 1 to apply for a new property tax exemption included in legislation signed into law in May 2023. AARP supported this provision that allows older Iowans to apply for a property tax exemption worth $3,250 for the current assessment year that began on January 1, 2023. In subsequent years, the exemption doubles to $6,500. These amounts are in addition to the existing homestead tax credit that exempts the first $4,850 of a qualifying home from property taxes.

Tax text written on wooden block with stacked coins

To be eligible for the homestead credit, 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. The claim must be filed on or before July 1 and the claim is allowed for successive years without further filing if you remain eligible.

It is important to note that exemptions are a reduction in the taxable value of the property, not a direct reduction of how much property taxes a homeowner pays.

Applications must be submitted to the county assessor's office by July 1 of the year in which the exemption is claimed. Forms turned in after that date will count as a claim for the following year.

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