State Tax Day - Current, S.7, Iowa—Property Tax: Property Tax System Changes Enacted, (May 20, 2026)
Iowa Governor Kim Reynolds has signed new legislation that introduce changes to the Iowa property tax system. Some of the changes include:
replacing the homestead property tax credit with a phased-in exemption;
increasing property tax exemptions for veterans;
increasing rental credit for elderly and disabled from $1,000 to $1,500 annually; and
creating the FirstHome Iowa program for first-time homebuyers.
Most changes are effective January 1, 2027, or for fiscal years beginning on or after July 1, 2027.
S.F. 2472, Laws 2026, effective as noted above