Property tax relief for seniors in Iowa

Programs at a glance

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Homestead exemption

A 2026 law (Senate File 2472, signed May 18, 2026) replaced Iowa's homestead tax credit with a homestead exemption. An exemption lowers the value you are taxed on, not the tax bill itself.

• Amount: 10% of your home's taxable value. The least it can be is $5,500 and the most is $20,000 of taxable value. The maximum will be adjusted for inflation starting with the 2027 assessment year.
• When it starts: With the 2026 assessment year, for taxes you pay in September 2027 and March 2028.
• If you already had the homestead credit, you do not need to file again.

Who qualifies

• You own the home and live in it on July 1 and for at least six months of the year.
• You say you are an Iowa resident for income tax.
• You do not claim a homestead on any other property.
• If you are in a nursing home, care facility or hospital, you can still qualify if the home is kept up and not rented out.

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Extra exemption at 65

If you were 65 or older on or before January 1 of the year you apply, you get an extra exemption of $6,500 of taxable value. This is on top of the regular homestead exemption.

How to apply for either exemption

1. Get form 54-028, Homestead Tax Exemption, from the Iowa Department of Revenue or your assessor.
2. Fill in your parcel number, the owners' names and birth dates, how you own the home, the date you moved in, and your previous address. Mark whether an owner is 65 or older.
3. Sign it. You also confirm that the home has a smoke detector, and a carbon monoxide alarm if it has fuel-burning appliances, a fireplace or an attached garage.
4. File it with your city or county assessor by July 1. A form filed after July 1 counts for the next year.

Once it is approved, the exemption goes on each year while you still qualify. You must tell the assessor in writing if you sell the home or stop living there.

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Elderly and disabled property tax credit

This credit pays part of your property tax if your household income is low. It is separate from the exemptions, and you must file it every year.

The limit for people 70 and older is 250% of the poverty level, so it is much higher.

How the credit is figured

• The credit is based on up to $1,000 of your property tax, including special assessments.
• The lower your income, the bigger the share you get back. With household income under $13,855, you get the full amount. The share drops in steps as income rises.
• If you are 70 or older, the treasurer also compares your current tax with your tax in the first full assessment year after you began claiming. You get whichever credit is larger.
• If you use part of the home for rent or business, the credit covers only the part you live in.

What counts as household income

Count your income and your spouse's if you live together. This includes:

• Iowa taxable income from your 2025 Iowa return
• All Social Security benefits, including the Medicare premium taken out, even if not taxed
• Pensions, annuities, IRAs and other retirement income
• Disability payments and workers' compensation
• Interest from government bonds, and capital gains not already counted
• Money others living with you pay you, and help with housing or utilities paid for you

Food assistance, medical help and other non-cash aid do not count. Property tax credits you got in 2025 do not count.

How to file

1. Get the Iowa Property Tax Credit Claim (form 54-001a) from your county treasurer or the Department of Revenue.
2. If you are under 65 and claim as disabled, attach proof: a Social Security paper showing when your disability began, a VA statement showing a 100% disability benefit, or a doctor's statement.
3. File it with your county treasurer, not the Department of Revenue. Find yours at iowatreasurers.org.
4. The 2026 claim was due June 1, 2026. The treasurer can allow a late claim up to March 31, 2027.

Mobile and manufactured homes can qualify if taxed as real estate. If not, you may claim the credit on the land if you own it, or ask the treasurer about the reduced tax rate program.

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Rent Reimbursement for renters

If you rent and are 65 or older, or an adult with a disability, Iowa HHS may pay back part of the rent you paid. The most it pays for one year is $1,000.

• How to apply: Online at benefits.stateofiowahhs.org/program/rentreimbursement. Claims for 2025 and 2024 opened January 2, 2026. Each year is a separate claim.
• What to send: Proof of your identity, income, rent paid, and disability if you claim as disabled.
• Nursing home residents: If you own a home and rent it out while you are in a nursing home, you cannot get the property tax credit, but you may qualify for Rent Reimbursement.
• Questions: Rent Reimbursement Team, 515-420-6077.

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After you file

• If your Rent Reimbursement claim is denied, you have 30 calendar days from the decision to appeal to Iowa HHS. Appeal online at hhs.iowa.gov/programs/appeals or by mail to HHS, Appeals Bureau, 321 E. 12th St., Des Moines, IA 50319.
• For questions about the credit, call your county treasurer. For the exemptions, call your assessor.

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Things people miss

• The homestead and 65+ exemptions are filed once. The property tax credit must be filed every year.
• People 70 and older have a much higher income limit for the credit.
• Social Security that is not taxed still counts as household income for the credit.

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Free help

• Iowa Department of Revenue, property tax: 515-281-3114.
• Iowa HHS: (800) 972-2017.

For other help, see all benefits in Iowa.

Phone numbers: Free help lines for Iowa agencies

Check what you may qualify for