Houghton, Iowa Property Taxes
The median property tax rate in Houghton, IA is 1.25%, slightly above the national median of 0.99% but below the Iowa state median of 1.54%. With a median home value in Houghton, the typical annual property tax bill amounts to $1,346, which is lower than the national median of $2,690. Property taxes in Houghton are calculated based on the assessed value, which is often lower than the market value due to exemptions like primary residence and agricultural exemptions. Understanding Houghton'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 Houghton 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
Houghton, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.25%
Estimate Property Tax Bill
$1,337
Ownwell’s Houghton Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Houghton with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Houghton 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 Houghton, Iowa
Property taxes in Houghton, Iowa, are essential for funding crucial local services such as public schools, road maintenance, and emergency services. The median tax rate in Houghton is 1.25%, which is higher than the U.S. national median of 0.99%. Local government entities in Houghton set these rates annually, and they can vary significantly across different neighborhoods. Each year, Houghton 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 Houghton's effective property tax rate to other counties in Iowa and the national median. For comparison, the zip code 52631 has the highest median property tax rate of 1.25%, while the same zip code also has the lowest median tax rate of 1.25%. Understanding how these cities compare with Houghton provides valuable insights into the varying tax landscape across Lee County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Houghton Tax Rate
1.25%
Average Lee County Tax Rate
1.57%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Houghton, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52631 | 0.97% | 1.14% | 1.25% | 1.33% | 1.36% |
Source: Ownwell
Property Tax Assessment Values Across Houghton, Iowa
In Houghton, 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 Lee 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 Houghton, 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. The median home price in Houghton is $106,980, with tax bills ranging from $930 at the 25th percentile to $2,752 at the 90th percentile. The zip code 52631 has both the highest and lowest median tax bill at $1,346. Being aware of these valuation processes in Houghton helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Houghton Assessed Value
$106,980
Average Lee County Assessed Value
$99,640
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Houghton, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52631 | $20,540 | $68,135 | $106,980 | $172,290 | $222,365 |
Source: Ownwell
Property Tax Bills Across Houghton, Iowa
In Houghton, located in Lee County, IA, property tax bills are calculated based on the assessed value of a home, which is determined by the local tax assessor. Homeowners in Houghton can expect their property taxes to be influenced by the median home price of $106,980. The assessed value is then multiplied by the local tax rate to determine the tax bill. For instance, homeowners in the 25th percentile pay around $930 annually, while those in the 75th percentile face bills closer to $2,174. The highest tax bills, representing the 90th percentile, can reach up to $2,752. Factors such as property improvements, changes in market conditions, and local government budgets can also affect these assessments. Compared to the national median property tax rate of 0.99%, Houghton's tax rates reflect the local economic conditions and funding needs. Understanding these factors helps homeowners anticipate their annual tax obligations and plan their finances accordingly.
Average Houghton Tax Bill
$1,346
Average Lee County Tax Bill
$1,604
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Houghton, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52631 | $314 | $930 | $1,346 | $2,174 | $2,752 |
Source: Ownwell