How Iowa property tax works
Iowa bills look simple, a levy rate per $1,000 of taxable value, but two steps come first:
- The rollback. Only part of a home's assessed value is taxable. The state sets the percentage every year to keep statewide residential value growth to about 3%. For the 2025 assessment (taxes paid in September 2026 and March 2027, fiscal year 2027) it's 44.5345%, down from 47.4316% the year before.
- The levy rate. Your consolidated rate adds the city, county, school district, community college, hospital and other levies for your tax district.
So the effective rate on market value is roughly the levy rate × 0.445 ÷ 1,000. A $43.74 levy is about 1.95% of market value, before credits.
FY2027 levy rates in Iowa cities
These are the Iowa Department of Management's consolidated rates for each city's main tax district and school district. The last column is the estimated tax on a $250,000 home with the $4,850 homestead credit.
| City | FY2027 levy per $1,000 | FY2026 | Effective rate | Tax on $250,000 home |
|---|---|---|---|---|
| Waterloo | $45.83 | $45.74 | 2.04% | $4,880 |
| Des Moines | $43.74 | $42.32 | 1.95% | $4,658 |
| Marshalltown | $42.92 | $40.73 | 1.91% | $4,570 |
| Council Bluffs | $42.39 | $42.46 | 1.89% | $4,514 |
| Clinton | $40.51 | $39.24 | 1.80% | $4,314 |
| Marion | $40.39 | $40.67 | 1.80% | $4,301 |
| Iowa City | $40.11 | $40.16 | 1.79% | $4,272 |
| Urbandale | $38.73 | $38.75 | 1.72% | $4,125 |
| Cedar Rapids | $38.45 | $38.19 | 1.71% | $4,095 |
| Mason City | $37.24 | $33.76 | 1.66% | $3,965 |
| Davenport | $36.95 | $37.68 | 1.65% | $3,934 |
| Ankeny | $36.68 | $36.68 | 1.63% | $3,905 |
| Sioux City | $36.39 | $38.11 | 1.62% | $3,875 |
| West Des Moines (Polk County) | $34.92 | $34.12 | 1.56% | $3,719 |
| Cedar Falls | $33.71 | $33.93 | 1.50% | $3,589 |
| Bettendorf | $32.68 | $32.61 | 1.46% | $3,480 |
| Ames | $30.88 | $30.58 | 1.38% | $3,288 |
| Dubuque | $30.41 | $30.32 | 1.35% | $3,238 |
| West Des Moines (Dallas County) | $29.94 | $29.23 | 1.33% | $3,188 |
Rates differ inside the same city by school district. In Des Moines, homes in the Urbandale school district pay $45.65, and in Cedar Rapids the Linn-Mar district is $42.53. West Des Moines is split between Polk and Dallas counties, with about a $5 gap.
Notice that most FY2027 bills fall even where levy rates didn't change much. That's the rollback dropping from 47.4% to 44.5%. On the same $250,000 Des Moines home, the FY2026 bill was about $4,814; FY2027 is about $4,658.
What the 2026 property tax law changes
Iowa passed a broad property tax law in May 2026 (Senate File 2472). The changes homeowners will notice:
- The homestead credit becomes an exemption. Starting with the 2026 assessment (taxes paid September 2027), the credit, worth the tax on $4,850 of value, is replaced by an exemption of 10% of taxable value, at least $5,500 and at most $20,000. People who already have the credit get it automatically. In the Department of Revenue's example, a $300,000 home's bill drops from about $3,912 to about $3,639.
- Levy limits. From fiscal year 2028, many city and county levies are capped at 102% of the prior year's dollars plus new construction, with hard rate caps added later, and the school foundation levy falls in steps.
- Assessors carry the burden of proof when a residential assessment rises 10% or more.
The 65 and older exemption stays at $6,500 of taxable value, with no income limit. In Des Moines it's worth about $284 a year.
Deadlines and how to lower your bill
- Payments: the first half is due September 1 and becomes delinquent after September 30; the second half is due March 1, delinquent after March 31.
- Appeals: file a protest with your local Board of Review between April 2 and April 30. See our appeal guide.
- Credits and exemptions: make sure you have the homestead credit (or, from 2027, the exemption), the 65+ exemption and, if you qualify, the military exemption. See senior exemptions.
Where these numbers come from
Levy rates are from the Iowa Department of Management's Consolidated Property Tax Rates in Iowa by Tax District and Fiscal Year. The rollback percentages are from the Legislative Services Agency (January 2026) and the Iowa Department of Revenue. The 2026 law changes are from the Department of Revenue's homestead credit and exemption guidance and summaries of Senate File 2472. Appeal dates are from Iowa Code § 441.37. For ZIP-level data, start from our Iowa page.