Tax Calculations

In the following calculations, the "=" symbol stands for equals and the "x" symbol stands for multiplication.

Calculation is as follows:

100% Actual Value x Rollback Rate by Property Class = Gross Taxable Value less Military Exemption = Net Taxable Value x Consolidated Tax Levy Rate = Gross Taxes less Homestead Credit less Ag Land Credit less Family Farm Credit less Elderly, Disabled, Low-Income Credit = Net Taxes

Tax Calculation Terms

  • 100% Actual Value: Determined by the City Assessor or County Assessor, except that values for Utility and Railroad property are determined by the Iowa Department of Revenue
  • Ag Land Credit: Parcels with an Agricultural Class of at least 10 acres in size qualify for the Ag Land Credit. Smaller parcels may qualify as they are contiguous to a qualifying parcel and under the same ownership.
  • Consolidated Tax Levy Rate: The total of the Levy Rate for all Levy Authorities within a specific Tax District
  • Elderly/Disabled/Low-Income Credit: Property owners may sign for the Elderly, Disabled, Low-Income Credit with the County Treasurer, and must qualify under standards set by the State of Iowa.
  • Family Farm Credit: Parcels that qualify for the Ag Land Credit may qualify for the Family Farm Credit if the land is farmed by the taxpayer or rented to a family member. Property owners must sign with the City or County Assessor and qualify under standards set by the State of Iowa.
  • Gross Taxable Value: Equals 100% Actual Value multiplied by the appropriate Rollback Rate
  • Gross Taxes: Equals the Net Taxable Value divided by 1,000 multiplied by the Tax Levy Rate and rounded to the nearest cent
  • Homestead Credit: Homeowners may qualify and sign for a Homestead Exemption with the city or county assessor. For most taxpayers, the Homestead Credit equals 4,850 divided by 1,000, multiplied by the Tax Levy Rate.
  • Military Exemption: Reduction in taxable value for men and women who served in the military may qualify and sign for a Military Exemption with the City or County Assessor. The tax value of this exemption is the Military Exemption divided by 1,000, multiplied by the Tax Levy Rate.
  • Net Taxable Value: Equals Gross Taxable Value minus Military Exemption. This is the value on which real estate taxes are calculated and on which the budgets of the various Levy Authorities are based.
  • Net Taxes: Equals Gross Taxes minus Homestead, Ag Land, Family Farm, and Elderly/Disabled, Low-Income Credits. This value is rounded to the nearest even whole dollar.
  • Rollback Rate by Property Class: Rollback Rates are statewide by Property Class that is determined annually by the Iowa Department of Revenue.

Additional Credit & Exemption Terms

Additional credits and exemptions defined at the Iowa State Association of Assessors website.