How to Apply for Homestead Credit in Iowa

The Iowa Homestead Credit is a state-funded program providing property tax relief to homeowners. It lowers the property tax liability on an owner’s primary residence by applying a credit directly to the tax statement. The program is administered at the local level by county assessors.

Eligibility Requirements for the Homestead Credit

To qualify for the homestead credit, an individual must own and occupy the property as their primary residence. The applicant must be residing in the home on July 1 of the claim year and live in the property for at least six months of the calendar year. The credit is calculated based on the first $4,850 of the property’s actual assessed value. Special provisions exist for individuals in the military or residing in a nursing home who may still qualify.

Homeowners who are 65 or older on or before January 1 of the assessment year may be eligible for an additional homestead tax exemption. For assessment years beginning on or after January 1, 2024, this exemption is for $6,500 of taxable value. This benefit is an exemption that reduces the taxable value of the property.

Preparing the Homestead Credit Application

To apply, you must obtain the “Iowa Homestead Tax Credit and Exemption Application” (Form 54-028). This form is available for download from the Iowa Department of Revenue’s website or as a physical copy from your local county assessor’s office.

When completing the form, you will need specific details about your property, including:

• The property’s parcel number, found on your tax statement or deed
• The full legal names of all property owners
• The date you began occupying the home as your primary residence
• The birthdates of the owners to apply for the 65+ exemption

Some counties offer online application portals, which allow for digital signatures and direct transmission to the assessor’s office. Be sure to fill out all required fields and sign the application.

Filing Your Application and Next Steps

The completed application must be filed with the local county assessor’s office by the July 1 deadline of the year the credit is first claimed. Filing can be done in person, by mail, or through an online portal where available.

After approval, the credit is automatically applied to future property tax statements. The homestead credit and the 65+ exemption are both a one-time filing, so it is not necessary to reapply each year as long as the applicant continues to own and occupy the home.

A new application is only required if the property is sold or if the owner moves to a new primary residence. The property owner is responsible for notifying the assessor’s office of any changes in eligibility status.