How to Apply for the Iowa Homestead Tax Credit in 2025

Updated Step-by-Step Guide by The dsmSOLD Team

If you're an Iowa homeowner, the Homestead Tax Credit is a great way to reduce your property taxes permanently. Whether you're newly settled or have owned your home for years, this guide will walk you through the application process and what has changed for 2025.

What Is the Homestead Tax Credit?

The Homestead Tax Credit is a property tax credit for Iowa residents who:

• Own and occupy their home as a primary residence as of July 1, and
• Have lived in the home for at least six months of the year.
  
  

The credit is funded by the State of Iowa and is based on the first $4,850 of the actual value of your home. Most homeowners will see the credit as a deduction on their property tax statement.

Once approved, this credit automatically renews every year—no need to reapply unless your eligibility changes.

What’s New in 2025?

Expanded Benefits for Seniors (65+)

As of January 1, 2024, Iowa homeowners 65 years or older are eligible for an additional Homestead Exemption of $6,500 in taxable home value.

• This is in addition to the regular Homestead Tax Credit.
  
• You use the same application form (Form 54-028) for both.
  
• The exemption auto-renews each year if you continue to qualify.
  
  

Updated Deadlines

• The application must be submitted to your County Assessor by July 1 to qualify for the current year’s credit.
  
  

If you're 65+ and newly applying for the additional exemption, submit it by July 1 as well.

How to Apply for the Homestead Credit

You may apply using either:

1. The Iowa Department of Revenue’s Homestead Credit Form (Form 54-028), or
   
   
2. Your local county assessor’s office.
   
   

Here at The dsmSOLD Team, as our way of helping you, we prepared a step-by-step process that you can follow. 

Step-by-Step guide on how to navigate and fill out a Homestead Tax Credit application:

For Dallas, Warren, Madison, Marshall, Boone, Story  County: Homestead Credit Application

Assessor Website: Beacon

For Marion County: Homestead Tax Credit

Assessor Website: Marion Assessor Page 

For Jasper County: Application Guide 

Assessor Website: Jasper Assessor Page

For Polk County: Application Guide 

Assessor Website: Polk Assessor Page

What to Expect After Applying

• You will typically receive confirmation within 30 days.
  
• The credit will be applied to the next property tax cycle.
  
• Once approved, it automatically renews each year while you live in the home.
  
• You only need to reapply if your property status or ownership changes.

Why This Matters

In a time of rising interest rates and economic shifts, this credit offers:

• Real annual savings on your property taxes
  
• Long-term affordability for Iowa homeowners
• A solid reason to invest in primary homeownership

Need Help?

At The dsmSOLD Team, we don’t just help you find the right home—we help you get the most out of it. If you have questions about your eligibility, the application process, or where to file, reach out to us. We’re here to help walk you through every step.

📞 Contact us today or stop by—we’d love to help you take advantage of your Homestead Credit!