Learn More About Iowa Property Taxes

Iowa Property Taxes – it starts with the assessment of value of each property, done on January 1.   Then all assessed property values are added together by classification (ag, residential, industrial, commercial)   those numbers are sent to the state for the equalization process and then each taxing entity establishes a budget.

Basically the county (and other taxing entities like school districts, etc) takes its budget and divides by the total taxable value of all property in the taxing district to come up with the levy (or millage) rate.  It’s just proportional math.

There are other factors like rollbacks and statewide equalization, but for the most part your taxes are primarily determined by your properties taxable valuation, the county wide valuations , and the budgets.  

In a hypothetical scenario, if everyone’s assessment and taxable value went up by exactly 10% but the county budget stayed the same, your taxes payable should remain the same.  

Your main concern on property tax assessment should be that if it is unrealistically above market rate, and if it was raised out of proportion to similar properties assessment increases.   (for example, your neighbor’s home went up 10% while yours went up 40%, and no improvements were done to your property since the previous assessment)

Your taxes increase if...

• The budgets increase and the taxable value of all properties remain the same.
• The budgets and taxable value of property in the entire government unit remain the same but the taxable value of the individual's property increases.
• The budgets and taxable value of the individual's property remain the same but the value of the property in the entire government unit decreases.

Your taxes decrease if...

• The budgets decrease and the taxable values of all properties remain the same.
• The budgets and taxable value of property in the entire government unit remain the same but the taxable value of the individual's property decreases.
• The budgets and taxable value of the individual's property remain the same but the taxable value of the property in the entire government unit increases.