Disabled Veteran Homestead Property Tax Credit
100% exemption from property taxes on homestead for 100% permanently disabled veterans.
Who qualifies
- Requires 100%+ VA disability rating
- Iowa residency
Details
Eligibility
Permanent 100% service-connected disability rating from the VA, OR permanent and total disability rating based on Individual Unemployability (IU) paid at the 100% rate, OR surviving spouse receiving Dependency and Indemnity Compensation (DIC). Must own and occupy the property as a homestead. Cannot receive this credit simultaneously with other military service-related property tax exemptions.
Covers
100% of annual property tax levy. Property size limits: up to 1/2 acre within city limits; up to 40 acres outside city limits (including house and outbuildings). No valuation cap in Iowa Code.
How to apply
File with your county Assessor on or before July 1. Requires DD-214 (or equivalent) and a current (within 12 months) VA Benefit Summary Letter stating service-connected disability rating (for IU claims, the letter must specify compensation at 100%). Reapplication not required annually; only notify the assessor if no longer qualifying.
Always confirm current rates and rules with the Iowa state agency before applying.
Other Iowa Tax Benefits
Military Service Property Tax Exemption
Up to $4,000 reduction in taxable value for honorably discharged veterans who served 18+ months.
$4,000 off taxable value
Military Retirement Pay State Income Tax Exemption
100% of military retired pay is exempt from Iowa state income tax.
~$1,140/year on $30,000 retirement pay (3.8% flat rate)
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