Iowa City, Iowa Property Taxes
The median property tax rate in Iowa City, 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 Iowa City, the typical annual property tax bill reaches $3,838, exceeding the national median of $2,690. Property taxes in Iowa City 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 Iowa 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 Iowa City 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
Iowa City, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.81%
Estimate Property Tax Bill
$3,887
Ownwell’s Iowa City Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Iowa City with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Iowa 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 Iowa City, Iowa
Property taxes in Iowa City, Iowa, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Iowa City is 1.81%, significantly higher than both the Iowa state median and the U.S. national median of 0.99%. Local government entities within Iowa City set these rates annually, and they can vary significantly across different neighborhoods. Each year, Iowa 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 Iowa City's effective property tax rate to other counties in Iowa and the national median. For comparison, the 52246 zip code has the highest median property tax rate of 1.88%, while the 52240 zip code has the lowest median tax rate of 1.79%. Understanding how these areas compare with Iowa City provides valuable insights into the varying tax landscape across Johnson County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Iowa City Tax Rate
1.81%
Average Johnson County Tax Rate
1.71%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Iowa City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52240 | 1.17% | 1.31% | 1.79% | 1.89% | 1.99% |
| 52242 | N/A | N/A | N/A | N/A | N/A |
| 52245 | 1.73% | 1.77% | 1.81% | 1.87% | 1.95% |
| 52246 | 1.53% | 1.76% | 1.88% | 1.92% | 2.03% |
Source: Ownwell
Property Tax Assessment Values Across Iowa City, Iowa
In Iowa City, 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 Johnson 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 Iowa 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 example, the highest median tax bill in Iowa City is $4,448 in the 52245 zip code, while the lowest median tax bill is $3,290 in the 52246 zip code. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Iowa City Assessed Value
$214,740
Average Johnson County Assessed Value
$229,790
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Iowa City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52240 | $75,930 | $155,105 | $222,070 | $324,360 | $507,700 |
| 52242 | N/A | N/A | N/A | N/A | N/A |
| 52245 | $111,608 | $184,305 | $240,880 | $306,930 | $402,797 |
| 52246 | $87,950 | $113,440 | $170,805 | $278,208 | $408,570 |
Source: Ownwell
Property Tax Bills Across Iowa City, Iowa
In Iowa City, Johnson County, property tax bills are calculated based on the assessed value of a home, which is determined by the county assessor. The assessed value is then multiplied by the local tax rate to determine the annual tax bill. Several factors influence the assessed value, including the home's market value, location, and any improvements or renovations made to the property. Homeowners in Iowa City can expect property tax bills to vary significantly. For instance, the 25th percentile tax bill is around $2,646, while the 75th percentile reaches up to $5,244. At the higher end, the 90th percentile tax bill can be as much as $6,985. The highest median tax bill in the area is $4,448 in the 52245 zip code, whereas the lowest median tax bill is $3,290 in the 52246 zip code. These property taxes directly impact homeowners by influencing their monthly mortgage payments and overall housing costs, making it crucial to understand how these taxes are calculated and managed.
Average Iowa City Tax Bill
$3,838
Average Johnson County Tax Bill
$3,786
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Iowa City, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 52240 | $1,766 | $2,828 | $3,836 | $5,234 | $6,828 |
| 52242 | N/A | N/A | N/A | N/A | N/A |
| 52245 | $2,469 | $3,488 | $4,448 | $5,580 | $7,103 |
| 52246 | $1,788 | $2,234 | $3,290 | $4,852 | $7,188 |
Source: Ownwell