Underwood, Iowa Property Taxes
The median property tax rate in Underwood, IA is 1.37%, which is considerably higher than the national median of 0.99% but lower than the Iowa state median of 1.54%. With a median home value of $269,000 in Underwood, the typical annual property tax bill reaches $3,796, significantly exceeding the national median of $2,690. Property taxes in Underwood 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 Underwood'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 Underwood 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
Underwood, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.37%
Estimate Property Tax Bill
$3,685
Ownwell’s Underwood Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Underwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Underwood 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 Underwood, Iowa
Property taxes in Underwood, Iowa, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Underwood is 1.29%, higher than both the Iowa state median of 1.25% and the U.S. national median of 0.99%. Local government entities within Underwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Underwood 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 Underwood's effective property tax rate to other counties in Iowa and the national median. For comparison, the 51576 zip code has the highest median property tax rate of 1.29%, while the 51576 zip code also has the lowest median tax rate of 1.29%. Understanding how these cities compare with Underwood provides valuable insights into the varying tax landscape across Pottawattamie County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Underwood Tax Rate
1.37%
Average Pottawattamie County Tax Rate
1.73%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Underwood, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51576 | 1.21% | 1.25% | 1.37% | 1.64% | 1.76% |
Source: Ownwell
Property Tax Assessment Values Across Underwood, Iowa
In Underwood, 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 Pottawattamie 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 Underwood, 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. Being aware of these valuation processes in Underwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The median home price in Pottawattamie County is $269,000, with the highest median tax bill in the 51576 zip code at $3,796.
Average Underwood Assessed Value
$269,000
Average Pottawattamie County Assessed Value
$173,400
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Underwood, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51576 | $139,590 | $189,400 | $269,000 | $351,925 | $449,270 |
Source: Ownwell
Property Tax Bills Across Underwood, Iowa
In Underwood, IA, property tax bills are calculated based on the assessed value of the property and the local tax rate. The assessed value is determined by the county assessor, who evaluates the property's market value. Homeowners in Underwood typically see a property tax rate that aligns closely with the national median of 0.99%. Factors such as property size, location, and improvements can influence the assessed value, which in turn affects the tax bill. For instance, with a median home price of $269,000, a homeowner might expect a tax bill anywhere from $2,676 at the 25th percentile to $5,074 at the 75th percentile. The highest median tax bill recorded in the zip code 51576 stands at $3,796. These values illustrate the range of property taxes that can significantly impact homeowners' finances. Understanding these factors helps homeowners anticipate their annual property tax obligations and plan their budgets accordingly.
Average Underwood Tax Bill
$3,796
Average Pottawattamie County Tax Bill
$2,932
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Underwood, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51576 | $1,934 | $2,676 | $3,796 | $5,074 | $6,162 |
Source: Ownwell