If you’re 65 or older and own a home in Central Iowa, the Iowa 65+ homestead exemption can lower your property tax bill starting in 2026. Combined with the standard Homestead Credit, qualifying seniors can reduce their taxable home value by up to $11,350 — and the application deadline is July 1. As a Seniors Real Estate Specialist (SRES®) serving West Des Moines, Urbandale, Waukee, Ankeny, Johnston, and Grimes, I help seniors and adult children understand how these tax benefits work before deciding whether to stay, downsize, or move closer to family.
What Changed for Iowa Homeowners 65+ on Property Taxes
What is the Iowa 65+ homestead exemption? In 2023, Iowa created a new homestead tax exemption specifically for homeowners 65 and older that stacks on top of the existing Homestead Credit. For qualifying seniors, the law reduces the taxable value of your primary home by a set amount each year while you remain eligible.
For the 2023 assessment year, the exemption reduced taxable value by $3,250. For 2024 and beyond, it reduces taxable value by $6,500. This is in addition to the regular Homestead Credit, which can reduce taxable value by up to approximately $4,850. You’re not choosing one or the other — you can use both together if you qualify, for a combined reduction of up to $11,350 in taxable value.
Who Qualifies for the Iowa 65+ Homestead Exemption
Who is eligible for the Iowa senior property tax exemption? To qualify, you must meet all of these requirements: be 65 or older on or before January 1 of the assessment year, own and live in the home as your primary residence, file as an Iowa resident for income tax purposes, and live in the home at least six months each year.
For homeowners in Des Moines, West Des Moines (50265), Urbandale (50322), Waukee (50263), Ankeny, Johnston, and Grimes, “primary residence” generally means the address where you vote, receive mail, and spend most of the year. If you split time between Iowa and another state — winters in Arizona, for example — you can still qualify as long as Iowa is your primary home and you meet the six-month residency test.
Special situations like military service, nursing home or assisted-living stays, and certain medical circumstances may still qualify. It’s always worth a quick review with your county assessor.
How to Apply Before the July 1 Deadline
How do you apply for the Iowa 65+ homestead exemption? File with your county or city assessor by July 1 of the assessment year using the Homestead Tax Credit and Exemption form (54-028), which covers both the standard Homestead Credit and the 65+ exemption. Detailed guidance and the current form are available on the Iowa Department of Revenue website.
Once approved, your exemption generally renews automatically as long as you remain eligible and the home stays your primary residence. If you sell and buy another Iowa home — whether you move across town in Urbandale or downsize to a ranch in Grimes — you must reapply at the new address.
For Polk and Dallas County homeowners, set a reminder in early May so you have time to gather documents before the deadline. If you’re moving to or within Urbandale (50322), Waukee (50263), or North Des Moines (50313), timing your closing before July 1 ensures you don’t miss a year of savings.
How Much Can Seniors Save in Polk and Dallas Counties
How much does the Iowa 65+ exemption save on property taxes? The exemption lowers your taxable value, not your tax rate, so the dollar savings depend on your local levy (mill rate). In most Polk and Dallas County neighborhoods, a $6,500 reduction in taxable value translates to roughly $150–$275 per year in property tax savings.
Higher-levy areas — including some parts of Ankeny and Johnston — often see savings toward the higher end of that range. When you add the standard Homestead Credit ($4,850 reduction), total savings for qualifying seniors typically reach $250–$450 per year depending on location.
The savings show up across your September and March property tax payments, helping offset rising assessments or higher levies. To estimate your specific tax impact, the property tax calculator models costs for any Des Moines area neighborhood.
If your 2025 or 2026 assessment jumped, this relief can soften the hit while you decide whether staying put, downsizing in Waukee, or moving to a single-story in Grimes makes the most sense. The neighborhood comparison tool lets you see how different areas affect your long-term budget.
Can You Stack Homestead, 65+ Exemption, and Veteran Benefits?
Can Iowa veterans get additional property tax benefits at 65? Yes — you can stack the 65+ exemption with the traditional Homestead Credit on the same property if you meet the requirements for both. If you’re also a qualifying veteran, you may be eligible for an additional military or veteran’s property tax exemption, handled separately through your assessor or veterans affairs office.
Couples should note there is only one 65+ exemption per property, even if both spouses are 65 or older, but both names can still be on the deed.
When we plan a senior move together, I look at the full stack — Homestead Credit, 65+ exemption, and any veteran benefits — so you can see the real impact on your annual tax bill before deciding whether to stay, remodel for accessibility, or move.
Quick Answers for Snowbirds, Downsizers, and Senior Moves
Already have the Homestead Credit? You can still add the 65+ exemption on top of it — it does not replace your existing credit.
Snowbird who spends winters out of state? You can often keep the 65+ exemption as long as Iowa remains your primary residence and you meet the six-month occupancy requirement. Documentation like voter registration, tax filings, and driver’s license should all reflect Iowa.
Moving within Iowa? Whether you’re moving to a townhouse in West Des Moines, a condo in downtown Des Moines, or a ranch in Waukee, you’ll need to reapply for the exemption at the new property. The downsizing vs. aging in place budget guide covers the full financial comparison.
In assisted living or a care facility? Special provisions may still apply — review your situation with your county assessor. The senior housing options page covers the full range from independent living to assisted care.
How Property Taxes Fit Into Your Senior Housing Decision
Property taxes are one piece of a bigger picture that includes health, accessibility, proximity to family, and long-term financial planning. Whether you’re staying in West Des Moines or downsizing closer to grandkids in Urbandale or Ankeny, your tax situation should inform — not dictate — the decision.
When we plan a move together, I estimate your likely taxes by neighborhood and zip code before you write an offer so your retirement budget stays protected. The senior downsizing guide walks through the full process, and the 6 costly downsizing mistakes covers what to avoid.
Frequently Asked Questions About Iowa Property Taxes at 65
How do Iowa property taxes change when you turn 65?
At 65, qualifying Iowa homeowners can apply for the 65+ homestead exemption, which reduces your primary home’s taxable value by $6,500 annually (starting with the 2024 assessment). Combined with the standard Homestead Credit (up to $4,850), total taxable value can be reduced by up to $11,350. The actual dollar savings depend on your local levy rate, but most Polk and Dallas County seniors save $250–$450 per year with both credits applied.
Can I get the Iowa 65+ exemption if I spend winters in another state?
In most cases, yes — as long as Iowa remains your primary residence, you live in the Iowa home at least six months per year, and your voter registration, tax filings, and driver’s license reflect Iowa residency. The key is that your Iowa property is your main home, not your winter residence.
What is the deadline to apply for the Iowa senior homestead exemption?
July 1 of the assessment year. File with your county or city assessor using form 54-028, which covers both the standard Homestead Credit and the 65+ exemption. Once approved, it renews automatically as long as you remain eligible. If you move to a new Iowa home, you must reapply at the new address.
Can I combine the 65+ exemption with veteran property tax benefits in Iowa?
Yes. The 65+ exemption, standard Homestead Credit, and qualifying veteran exemptions can all apply to the same property. Each is filed separately — the Homestead and 65+ exemption through your county assessor, and veteran benefits through your assessor or county veterans affairs office. There is one 65+ exemption per property regardless of how many qualifying owners live there.
Do I lose my property tax exemption if I move to a different Iowa home?
You lose it at the old address, but you can reapply at the new address. If you’re moving within the Des Moines metro — from a larger home in Johnston to a ranch in Waukee, for example — file a new application with the assessor in your new jurisdiction before July 1 to avoid missing a year of savings. I help clients time closings around this deadline so no tax benefits fall through the cracks.
Your Next Step
- Estimate your savings:Calculate your property tax impact in any Des Moines area neighborhood
- Explore 55+ options: Browse the 2026 Central Iowa 55+ living guide for community-by-community options
- Start a conversation:Schedule a free consultation or call me at (563) 513-8771
From First Keys to Final Chapters — let’s make a smart move.
About Sarah Ingles
Sarah Ingles is a REALTOR®, Seniors Real Estate Specialist (SRES®), and Chartered Property Casualty Underwriter (CPCU®) who foundedSmart Move Des Moines, brokered by Fathom Realty. With over 10 years of property insurance expertise, Sarah helps families across the Des Moines metro navigate the emotional and logistical details of selling a parent’s home, handling estate and probate properties, and coordinating senior transitions with patience and clarity.
🗓️Book a Consultation: https://smartmovedsm.com/book
📞Call or Text: 563-513-8771
📧Email: [email protected]
Serving Urbandale, West Des Moines, Waukee, Ankeny, Johnston, Grimes, and the greater Des Moines metro. See what families say about working with Smart Move Des Moines →