07/07/2026
As we start our new property tax year, July 1st to June 30th, this is a change for the Iowa property taxes worth a look at for first time home buyers that meet the requirements. While I don't have a lot of information on this program yet, I do expect it to be very helpful to those that fit into this exemption. Please read the notice that has been put out, I have copied and pasted it below!
Property Tax Relief and First-Time Homebuyer Opportunities.
One of the most significant pieces of legislation passed this year was SF2472, a comprehensive property tax reform package that includes several changes designed to benefit Iowa property owners.
The legislation transitions Iowa's Homestead Credit program to a Homestead Exemption beginning with assessment years starting January 1, 2026. Under the new system, homeowners will receive a property tax exemption equal to 10% of their home's taxable value, with a minimum exemption of $5,500 and a maximum exemption of $20,000. The maximum will be indexed for inflation annually moving forward.
SF2472 also establishes the FirstHome Iowa Program, a new tax-advantaged savings account for first-time homebuyers. The program allows eligible Iowans to save for down payments and closing costs while receiving state income tax benefits on contributions and earnings. The initiative is intended to help more Iowans overcome one of the biggest barriers to homeownership: saving for upfront purchase costs.