Davis City, Iowa Property Taxes
The median property tax rate in Davis City, IA is 1.40%, which is higher than the national median of 0.99% but lower than the Iowa state median of 1.54%. With the median home value in Davis City being $24,310, the typical annual property tax bill amounts to $414, well below the national median of $2,690. Property taxes in Davis City are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as primary residence and agricultural exemptions. Understanding Davis City'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 Davis City or another part of Decatur County, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Davis City, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.4%
Estimate Property Tax Bill
$340
Ownwell’s DAVIS CITY Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in DAVIS CITY with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in DAVIS CITY 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 Davis City, Iowa
Property taxes in Davis City, Iowa, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Davis City is 1.40%, which is significantly higher than both the Iowa state median and the U.S. national median of 0.99%. Local government entities within Davis City set these rates annually, and they can vary significantly across different neighborhoods. Each year, Davis City 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 Davis City's effective property tax rate to other areas in Decatur County and the national median. For comparison, the 50065 zip code has the highest median property tax rate of 1.40%, while the same zip code also represents the lowest median tax rate of 1.40%. Understanding how these areas compare with Davis City provides valuable insights into the varying tax landscape across Decatur County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Davis City Tax Rate
1.40%
Average Decatur County Tax Rate
1.59%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Davis City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50065 | 0.45% | 0.85% | 1.40% | 1.94% | 2.85% |
Source: Ownwell
Property Tax Assessment Values Across Davis City, Iowa
In Davis City, 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 Decatur 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 Davis City, 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. For instance, the median home price in Davis City is $24,310, with tax bills ranging from $60 at the 25th percentile to $2,350 at the 90th percentile. The zip code 50065 has the highest and lowest median tax bill of $414. Being aware of these valuation processes in Davis City helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Davis City Assessed Value
$24,310
Average Decatur County Assessed Value
$57,520
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Davis City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50065 | $1,631 | $4,190 | $24,310 | $77,969 | $157,671 |
Source: Ownwell
Property Tax Bills Across Davis City, Iowa
In Davis City, Decatur County, IA, property tax bills are calculated based on the assessed value of the property, which is determined by local assessors. This assessed value is then multiplied by the local tax rate to determine the annual tax bill. For homeowners in Davis City, the median home price is $24,310. Property tax bills can vary significantly, with the 25th percentile paying around $60, while those in the 75th percentile face bills up to $1,122. At the 90th percentile, tax bills can reach as high as $2,350. The local tax rate is influenced by various factors, including the funding needs of local schools, infrastructure, and public services. Homeowners in Davis City should be aware of these factors as they directly impact the amount they owe in property taxes. Compared to the national median property tax rate of 0.99%, Davis City's rates can be relatively high, especially for properties with higher assessed values. Understanding these elements can help homeowners better anticipate their annual property tax obligations.
Average Davis City Tax Bill
$414
Average Decatur County Tax Bill
$928
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Davis City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50065 | $20 | $60 | $414 | $1,122 | $2,350 |
Source: Ownwell