There are two new homestead tax exemptions in Iowa and the Linn County Assessor and the Cedar Rapids City Assessor want to ensure Linn County residents are aware of these new exemptions.
Please note that the Cedar Rapids City Assessor serves residents within the city limits of Cedar Rapids. The Linn County Assessor serves residents outside of the city limits of Cedar Rapids. Enter your property address into the “Real Estate Search” bar on either the Linn County Assessor’s website or the Cedar Rapids City Assessor’s website to find your jurisdiction if you are unsure in which jurisdiction your property is located.
Increase in Military Exemption
The military service tax exemption is being increased to $4,000 in taxable value for assessment years on or after January 1, 2023, for an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran as defined in Iowa Code section 35.1(2)(a) or (b). Veterans who are already receiving the military exemption do not need to take any action to receive the increase in the military exemption – the exemption amount will increase automatically. You will see the exemption amount increase on the property taxes that are payable in the fall of 2024 and spring of 2025.
Qualifying veterans who have not yet applied for the military exemption can find the application on the Iowa Department of Revenue website and should submit it to their assessor’s office by July 1.
Claimants 65 Years of Age or Older
On May 4, 2023, Governor Reynolds signed House File 718, establishing a homestead tax exemption for claimants 65 years of age or older. This new exemption is in addition to the homestead tax credit that many homeowners already have. With this new tax exemption, eligible claimants who own the home they live in and are 65 years of age or older on or before January 1 of the assessment year are now eligible for a homestead tax exemption. For the assessment year beginning on January 1, 2023, the exemption is for $3,250 of taxable value. For assessment years beginning on or after January 1, 2024, the exemption is for $6,500 of taxable value. An exemption is a reduction in the taxable value of the property rather than a direct reduction in the amount of property tax you pay.
Applications for this exemption must be submitted to your local assessor’s office by July 1, 2023. If the exemption is granted, the exemption will be allowed for future years without future filing as long as the claimant continues to qualify. This exemption will show on your property taxes that are payable in the fall of 2024 and spring of 2025. Only one 65 and over homestead exemption per property is allowed.
Applications for this new homestead tax exemption are available on the Linn County Assessor’s website and the Cedar Rapids City Assessor’s website. Linn County residents who live outside the city limits of Cedar Rapids should submit their applications to the Linn County Assessor. Cedar Rapids residents should submit their applications to the Cedar Rapids City Assessor.
Homeowners who are 65 or older AND a qualifying veteran are eligible for both the military exemption and the homestead tax exemption.