There is a new tax exemption for Iowans 65 years or older. Iowa seniors have until July 1 to apply for a new property tax exemption that is part of a sweeping property tax cut bill signed into law last May. Iowans age 65 or older are eligible for a property tax exemption worth $3,250 for the assessment year beginning Jan. 1, 2023. In subsequent years, the exemption doubles to $6,500.
This does not equal a direct reduction in how much you pay. Exemptions are a reduction in the taxable value of the property, not a direct reduction of how much property taxes a homeowner pays. The current homestead tax credit already exempts the first $4,850 of a qualifying home from property taxes. This new exemption for older Iowans is in addition to the current tax exemption.
Take advantage before July 1. Iowans can find the application at tax.iowa.gov/forms. To claim the new exemption, applicants must provide their date of birth and certify that the information on the form is correct. Forms must be returned to the county assessor’s office by July 1. Forms turned in after that date will count as a claim for the following year.
The new law also includes a military service property tax exemption and credit will increase from the current $1,852 to $4,000. This exemption is available to “an honorably separated, retired, furloughed to a reserve, placed on inactive status or discharged veteran.” The application form is also due July 1, but veterans who already receive the military exemption do not need to reapply.
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