Disabled Veteran Homestead Tax Credit, Military Service Tax Exemption
Where to apply in Iowa
Your city or county assessor handles the homestead exemption, the 65+ exemption, the military exemption and the disabled veteran credit. The low-income elderly and disabled credit is claimed with the county treasurer.
The office that handles property in each Iowa county, with its phone number. In some places another office takes exemption applications; the “Where to apply” box above says which.
From assessment year 2026 (taxes paid September 2027 and March 2028): 10% of your home's taxable value is exempt, at least $5,500 and at most $20,000 of taxable value. It replaces the old homestead credit (tax on $4,850 of value). The $20,000 cap will be adjusted for inflation from 2027.
Who qualifies
You own and live in the home as your Iowa homestead.
How to apply
File Form 54-028 (Homestead Tax Exemption) with your city or county assessor. The form needs no extra documents. People who had the homestead credit or exemption before July 1, 2026 get the new 10% exemption automatically.
A credit equal to the entire property tax on your homestead. For applications filed on or after July 1, 2026, the homestead is limited to the house and one-half acre (no outbuildings).
Who qualifies
Veteran who owns and lives in the homestead and has a VA permanent and total service-connected disability, or a permanent and total rating based on individual unemployability paid at the 100% rate (or other categories in Iowa Code 425.1(2)(b)). Certain surviving spouses and children qualify (for example those receiving VA Dependency and Indemnity Compensation), as listed in Iowa Code 425.1(2)(b). No income limit.
How to apply
File Form 54-049 together with Form 54-028 with your assessor. Attach your DD-214 (or equivalent) and a VA Benefit Summary Letter dated within the last 12 months showing your rating. If you take this credit you cannot also get other veterans' property tax exemptions, such as the Military Service Tax Exemption.
$4,000 of taxable value is exempt (since assessment year 2023).
Who qualifies
Qualifying veteran (or certain surviving spouses and dependents) who owns the property, with an honorable discharge recorded with the county recorder. You cannot combine it with the disabled veteran credit.
How to apply
File the Military Service Tax Exemption application with your assessor; your DD-214 must be recorded with the county recorder.
Deadline
Apply by July 1 of the assessment year (not confirmed on an official page this round; check with your assessor).
A credit against the property tax on your home: 100% of the tax if 2025 household income was under $13,855, falling in steps (85%, 70%, 50%, 35%, 25%) to no credit at $26,895 or more. Owners 70 or older with household income at or below 250% of the federal poverty level can instead get a credit that holds their property tax at the base-year amount.
Who qualifies
Iowa resident who owns and lives in the home and, on December 31, 2025, was (a) 65 or older with household income under $26,895, (b) 70 or older with household income at or below 250% of the federal poverty level, or (c) totally disabled and 18 or older with income under $26,895. A nursing-home resident can claim it if the home is not rented out.
Income limit
For 2026 claims (2025 income): under $26,895 for the regular credit. 70+ freeze credit: at or below 250% of the federal poverty level, which is $39,125 for one person, $52,875 for two, $66,625 for three, $80,375 for four, plus $13,750 for each extra person.
How to apply
File Form 54-001 (Iowa Property Tax Credit Claim) with your county treasurer, with proof of household income.
No per-home cap. Statewide residential assessment limitation ('rollback') sets the share of assessed value that is taxable each year (44.5345% for assessment year 2025 per the Department example), and the 70+ freeze credit holds qualifying seniors' tax in place.
Good to know in Iowa
SF 2472 (signed May 18, 2026) replaced the homestead credit with a 10% homestead exemption starting with 2026 assessments; you don't need to refile if you already had the homestead.
Disabled veteran credits applied for on or after July 1, 2026 cover only the house and one-half acre.
The elderly and disabled credit must be refiled with the county treasurer every year by June 1.
Savings estimate for Iowa
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for Iowa
Answer a few questions to see which property tax breaks may fit you.
Document checklist for Iowa
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in Iowa
Is there a homestead exemption in Iowa?
Yes: the Homestead Tax Exemption. From assessment year 2026 (taxes paid September 2027 and March 2028): 10% of your home's taxable value is exempt, at least $5,500 and at most $20,000 of taxable value. It replaces the old homestead credit (tax on $4,850 of value). The $20,000 cap will be adjusted for inflation from 2027. Who qualifies: You own and live in the home as your Iowa homestead.
When is the deadline to apply for the homestead exemption in Iowa?
July 1 of the assessment year; later applications count for the next year.
Do I have to reapply for the homestead exemption every year in Iowa?
One-time; continues while you own and live in the home.
Are there property tax breaks for seniors in Iowa?
Homestead Tax Exemption for Claimants 65 or Older: An extra $6,500 of taxable value is exempt, on top of the 10% homestead exemption. Elderly and Disabled Property Tax Credit (and 70+ tax freeze credit): A credit against the property tax on your home: 100% of the tax if 2025 household income was under $13,855, falling in steps (85%, 70%, 50%, 35%, 25%) to no credit at $26,895 or more. Owners 70 or older with household income at or below 250% of the federal poverty level can instead get a credit that holds their property tax at the base-year amount.
Do disabled veterans get a property tax exemption in Iowa?
Disabled Veteran Homestead Tax Credit: A credit equal to the entire property tax on your homestead. For applications filed on or after July 1, 2026, the homestead is limited to the house and one-half acre (no outbuildings).
Is there a limit on how fast my home's taxable value can rise in Iowa?
No per-home cap. Statewide residential assessment limitation ('rollback') sets the share of assessed value that is taxable each year (44.5345% for assessment year 2025 per the Department example), and the 70+ freeze credit holds qualifying seniors' tax in place.
Where do I apply for property tax exemptions in Iowa?
Your city or county assessor handles the homestead exemption, the 65+ exemption, the military exemption and the disabled veteran credit. The low-income elderly and disabled credit is claimed with the county treasurer.
Think your home’s assessed value is too high? An exemption and an appeal are separate: you can do both.
Median effective tax rate: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, tables B25103 (median real estate taxes paid, owner-occupied homes) and B25077 (median value, owner-occupied homes). The rate is the median tax paid divided by the median home value.