Derby, Iowa Property Taxes
The median property tax rate in Derby, IA is 1.31%, which is higher than the national median of 0.99% but lower than the Iowa state median of 1.54%. With a median home value of $63,413 in Derby, the typical annual property tax bill amounts to $824, falling below the national median of $2,690. Property taxes in Derby are calculated based on the tax assessed value, which is often lower than the market value due to various exemptions, such as those for primary residences and agricultural properties. Understanding Derby'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 Derby 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
Derby, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.31%
Estimate Property Tax Bill
$831
Ownwell’s Derby Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Derby with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Derby 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 Derby, Iowa
Property taxes in Derby, Iowa, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Derby is 1.31%, significantly higher than the U.S. national median of 0.99%. Local government entities within Derby set these rates annually, and they can vary significantly across different neighborhoods. Each year, Derby 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 Derby's effective property tax rate to other counties in Iowa and the national median. For comparison, the 50068 zip code has the highest median property tax rate of 1.31%, while the same zip code also has the lowest median tax rate of 1.31%. Understanding how these cities compare with Derby provides valuable insights into the varying tax landscape across Lucas County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Derby Tax Rate
1.31%
Average Lucas County Tax Rate
1.47%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Derby, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50068 | 0.50% | 1.03% | 1.31% | 1.68% | 2.11% |
Source: Ownwell
Property Tax Assessment Values Across Derby, Iowa
In Derby, 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 Lucas 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 Derby, 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 Derby helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code with the highest median tax bill is 50068 at $824.00, while the lowest is also 50068 at $824.00.
Average Derby Assessed Value
$63,413
Average Lucas County Assessed Value
$94,795
Average Iowa Assessed Value
$167,100
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Derby, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50068 | $3,597 | $8,704 | $63,413 | $128,108 | $219,791 |
Source: Ownwell
Property Tax Bills Across Derby, Iowa
In Derby, Lucas County, IA, property tax bills are calculated based on the assessed value of a property, which is determined by the local assessor. The assessed value is then multiplied by the local tax rate to calculate the tax bill. Factors such as property size, location, and market conditions are considered during assessment. Homeowners in Derby experience a range of property tax bills, with the 25th percentile paying around $88 and the 75th percentile seeing bills up to $1,738. For those in the 90th percentile, tax bills can reach as high as $3,062. The median home price in Derby is $63,413, and the property tax rate in Derby is lower than the national median of 0.99%. This lower tax rate can significantly affect homeowners by reducing their annual financial burden compared to other regions. The highest median tax bill in Lucas County is $824, indicating that even the highest bills in the area remain relatively affordable.
Average Derby Tax Bill
$824
Average Lucas County Tax Bill
$1,460
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Derby, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 50068 | $28 | $88 | $824 | $1,738 | $3,062 |
Source: Ownwell