What is the Property Tax Rate in Iowa?
Based on HomeLight’s analysis of publicly available data, the average effective property tax rate for a primary residence in Iowa is approximately 1.27% of its estimated value. This is higher than the national average of 0.90%.
For example, with a 1.27% effective tax rate, a homeowner with a $260,000 home might pay around $3,302 in annual property taxes.
An effective property tax rate represents the actual percentage of a property’s market value that a homeowner pays in taxes, considering the assessed value and any exemptions or deductions.
Note: HomeLight’s Iowa property tax calculator provides a ballpark estimate for a primary residence using average rates. Your tax can vary based on location and the specific taxing districts (e.g., schools, fire districts, and libraries) that apply to your parcel.
Step One: Consult with a Trusted Buyer's Agent
Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase), and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.
Are There Property Tax Exemptions in Iowa?
Iowa homeowners can qualify for a property tax credit on the first $4,850 of their property’s value.
When Are Iowa Property Taxes Due?
Iowa property taxes require an 18-month cycle. Taxes are assessed on January 1 each year, with the first half due in the Fall of the following year and the second half due in the Spring of the year after that. For example, if your property taxes were assessed in January 2024, the first portion would be due in Fall 2025, with the remainder due in Spring 2026.
What Do Property Taxes Pay For in Iowa?
Local property taxes in Iowa pay for important local services, including:
- Public schools
- Police, fire, and EMS services
- Roads, streets, and traffic signals
- Parks, libraries, and community centers
- City and county government operations
- Infrastructure like water, sewer, and trash services
- Repayment of local bond projects (such as transit and school improvements)
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What Does It Cost to Buy a Home in Iowa?
How Much House Can You Afford?
Affordability in Iowa depends on your income, debt, credit score, and mortgage rate. With a median household income of around $71,433 in the Hawkeye State, a buyer might afford a home $235,000 using standard debt-to-income guidelines. However, with the Iowa median home price hovering at $260,000, many buyers need dual incomes or additional savings to qualify.
Use HomeLight’s Home Affordability Calculator to estimate your budget based on your income, debts, and current rates.
What Down Payment Will You Need in Iowa?
According to Visual Capitalist, the average down payment on a house in Iowa is 15.5%. However, down payment amounts vary widely depending on loan type and credit score. While 20% used to be the expected standard, many buyers put down between 5% and 15%, with 3% options available for FHA and some conventional first-time buyer loans.
For a $260,000 home, here’s what your down payment could look like:
- 3% down = $7,800
- 5% down = $13,000
- 10% down = $26,000
- 15% down = $39,000
- 20% down = $52,000
Try HomeLight’s Down Payment Calculator to see how different down payments affect your monthly payment and loan size.
How Much Are Closing Costs in Iowa?
Buyers in Iowa can expect to pay about 2% to 5% of the purchase price in closing costs. These may include:
- Loan origination and underwriting fees
- Title insurance and escrow fees
- Appraisal and inspection costs
- Prepaid property taxes and homeowners’ insurance
- Filing and recording fees
For a $260,000 home, that means estimated closing costs of $5,200 to $13,000. Use HomeLight’s Closing Costs Calculator to get a personalized estimate based on your expected Iowa home purchase price.
How To Find a Trusted Iowa Real Estate Agent
An experienced Iowa agent can help you understand local tax rates, school districts, and development trends — and guide you toward neighborhoods that fit your lifestyle and budget.
HomeLight’s free Agent Match tool uses data from over 27 million transactions and thousands of verified reviews to match you with top Iowa agents based on proven performance. Tell us a little about your buying plans and get matched today with no obligation.
Additional resources when searching for a trusted buyer’s agent in Iowa:
Buying and Selling? Consider “Buy Before You Sell”
If you’re buying a new home in Iowa but need to sell your current property first, HomeLight’s Buy Before You Sell program can simplify the entire process. This modern solution helps you unlock equity from your current home so you can make a non-contingent offer on your new home — and only move once. Watch the short video below to see how it works.