Iowa Homestead Tax Exemption for Claimants 65 or Older

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On May 4, 2023, Iowa Governor Kim Reynolds signed House File 718 into law, bringing a new tax break for some. The new legislation establishes a homestead tax exemption for individuals aged 65 or older. Eligible claimants can now apply for the exemption through the Iowa Department of Revenue, offering potential long-term benefits. This must be done by July 1, 2023.

Eligibility Criteria and Exemption Amounts

Under the Homestead Tax Exemption, eligible claimants must be 65 years of age or older by January 1 of the assessment year and must own the home they reside in. The legislation provides two tiers of exemption amounts, depending on the assessment year.

For the assessment year starting January 1, 2023, qualified individuals are eligible for a $3,250 reduction in the taxable value of their property. Starting from January 1, 2024, the exemption amount doubles to $6,500 of taxable value. It's important to note that the exemption directly impacts the taxable value of the property rather than offering an immediate reduction in property tax payments.

 Application Process

To apply for the homestead tax exemption, interested claimants must complete the amended Homestead Tax Credit Exemption (54-028) form provided by the Iowa Department of Revenue. The deadline for submitting applications is July 1, 2023, to your local assessor's office. If the exemption is granted, claimants can enjoy the benefits in subsequent years without needing to reapply, if they continue to meet the eligibility requirements.

If you meet the eligibility criteria, make sure to submit your application before the deadline of July 1, 2023, and stay informed about any future changes or updates issued by the Iowa Department of Revenue.

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