Red Oak, Iowa Property Taxes
The median property tax rate in Red Oak, IA is 1.81%, considerably higher than both the national median of 0.99% and the Iowa state median of 1.54%. With the median home value in Red Oak, the typical annual property tax bill reaches $1,751, which is lower than the national median of $2,690. Property taxes in Red Oak are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Red Oak's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Red Oak or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Red Oak, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.81%
Estimate Property Tax Bill
$1,809
Ownwell’s RED OAK Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in RED OAK with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in RED OAK to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Red Oak, Iowa
Property taxes in Red Oak, Iowa, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Red Oak is 1.81%, significantly higher than both the Iowa state median and the U.S. national median of 0.99%. Local government entities within Red Oak set these rates annually, and they can vary significantly across different neighborhoods. Each year, Red Oak estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Red Oak's effective property tax rate to other areas in Iowa and the national median. For comparison, the 51566 zip code has both the highest and lowest median property tax rate of 1.81%. Understanding how these figures compare with Red Oak provides valuable insights into the varying tax landscape across Montgomery County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Red Oak Tax Rate
1.81%
Average Montgomery County Tax Rate
1.71%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | 1.17% | 1.45% | 1.81% | 2.00% | 2.23% |
Source: Ownwell
Property Tax Assessment Values Across Red Oak, Iowa
In Red Oak, Iowa, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Montgomery County Assessor for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Red Oak, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Red Oak’s highest median tax bill is $1,751 in the 51566 zip code, while the lowest is also $1,751 in the same zip code. Being aware of these valuation processes in Red Oak helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Red Oak Assessed Value
$99,930
Average Montgomery County Assessed Value
$96,860
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | $19,396 | $51,358 | $99,930 | $163,078 | $248,561 |
Source: Ownwell
Property Tax Bills Across Red Oak, Iowa
In Red Oak, located in Montgomery County, IA, property tax bills are calculated based on the assessed value of the property, which is determined by local assessors. The assessed value is then multiplied by the local tax rate to determine the annual tax bill. For homeowners in Red Oak, the median home price is $99,930, and the property tax rate is relatively low compared to the national median property tax rate of 0.99%. The tax bills in this area vary significantly, with the 25th percentile tax bill at $910 and the 75th percentile reaching $2,778. For those in the higher end, the 90th percentile tax bill can be as high as $4,173. The highest and lowest median tax bills in Red Oak are both $1,751, indicating a consistent median tax rate within the zip code 51566. These property taxes fund local services such as schools, infrastructure, and public safety, directly impacting the quality of life for homeowners in the region.
Average Red Oak Tax Bill
$1,751
Average Montgomery County Tax Bill
$1,611
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | $423 | $910 | $1,751 | $2,778 | $4,173 |
Source: Ownwell