Red Oak, Iowa Property Taxes
The median property tax rate in Red Oak, IA is 1.20%, considerably higher than both the national median of 0.99% and the Iowa state median of 1.54%. With the median home value in Red Oak, the typical annual property tax bill reaches $2,918, exceeding the national median of $2,690. Property taxes in Red Oak 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 Red Oak'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 Red Oak 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
Red Oak, Iowa Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.2%
Estimate Property Tax Bill
$3,036
Ownwell’s RED OAK Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in RED OAK with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in RED OAK 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 Red Oak, Iowa
Property taxes in Red Oak, Iowa, are essential for funding crucial local services such as public schools, road maintenance, and emergency services. The median tax rate in Red Oak is 1.25%, which is significantly higher than both the Iowa state median of 1.57% and the U.S. national median of 0.99%. Local government entities within Red Oak set these rates annually, and they can vary significantly across different neighborhoods. Each year, Red Oak 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 Red Oak's effective property tax rate to other counties in Iowa and the national median. For comparison, the zip code 51566 has the highest median property tax rate of 1.25%, while the same zip code, 51566, also has the lowest median tax rate of 1.25%. Understanding how these cities compare with Red Oak provides valuable insights into the varying tax landscape across Montgomery, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Red Oak Tax Rate
1.20%
Average Pottawattamie County Tax Rate
1.73%
Average Iowa Tax Rate
1.54%
Average United States Tax Rate
0.99%
Property Tax Rates Across Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | 1.03% | 1.16% | 1.20% | 1.33% | 1.37% |
Source: Ownwell
Property Tax Assessment Values Across Red Oak, Iowa
In Red Oak, 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 Red Oak, 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. The median home price in Red Oak is $253,000, with tax bills ranging from $1,839 at the 25th percentile to $3,837 at the 90th percentile. Notably, the highest and lowest median tax bills in the area are both $2,918, found in the 51566 zip code. 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 Red Oak helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Red Oak Assessed Value
$253,000
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 Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | $136,640 | $175,600 | $253,000 | $284,350 | $296,140 |
Source: Ownwell
Property Tax Bills Across Red Oak, Iowa
In Red Oak, IA, property tax bills are determined by multiplying the assessed value of a property by the local tax rate. The assessed value is an estimate of the market value of a home, which is periodically reassessed to reflect changes in the real estate market. Red Oak’s property tax rate is influenced by various factors, including local government budgets, school funding requirements, and public services. For homeowners in Red Oak, the median home price stands at $253,000. Property tax bills can vary significantly; the 25th percentile tax bill is $1,839, while the 75th percentile reaches $3,645. At the 90th percentile, homeowners may see bills as high as $3,837. These figures highlight the range of property tax burdens within the city and underscore the importance of accurate property assessments. Compared to the national median property tax rate of 0.99%, Red Oak’s property taxes can have a substantial impact on household finances, making it crucial for homeowners to stay informed and proactive about their property tax obligations.
Average Red Oak Tax Bill
$2,918
Average Pottawattamie County Tax Bill
$2,932
Average Iowa Tax Bill
$2,508
Average United States Tax Bill
$2,690
Property Tax Bills Across Red Oak, Iowa
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 51566 | $1,727 | $1,839 | $2,918 | $3,645 | $3,837 |
Source: Ownwell