Property Tax Exemption for Veterans in Iowa

Iowa provides property tax exemptions specifically for veterans, including two significant programs.

The Disabled Veteran Homestead Property Tax Credit and the Military Service Property Tax Exemption.

Disabled Veteran Homestead Property Tax Credit

Eligibility: This credit offers a complete exemption from property taxes for veterans who are 100% disabled due to service-related injuries, as well as for those receiving Dependency and Indemnity Compensation (DIC).

Application Process: Veterans need to apply through their local county assessor’s office. Applications must be submitted by July 1 of the assessment year. Once granted, this exemption does not require annual reapplication as long as the veteran still meets the eligibility criteria.

Military Service Property Tax Exemption

General Exemption: Iowa also offers a property tax exemption that reduces a veteran’s assessed home value by $4,000. To qualify, the veteran must have served on active duty during wartime or for at least 18 months during peacetime.

Application: Like the Disabled Veteran Homestead Property Tax Credit, veterans must file their application with the local assessor’s office by July 1. This exemption is available to veterans who were honorably separated, retired, or discharged.

Additional Information

Surviving Spouses: The surviving spouse of a veteran may be eligible for certain property tax exemptions unless they remarry or change their homestead.

Limitations: Veterans opting for the homestead tax credit will not qualify for any other property tax exemptions or credits during the same tax year.