Explore County

Exemptions & Credits

Iowa law provides for a number of exemptions and credits. All forms for the following exemptions and credits are available in our office. Questions should be directed to the Assessor’s Office.

Homestead Tax Credit

(Code of Iowa, Chapter 425) Originally adopted to encourage homeownership through property tax relief. Iowa residents who own and occupy their dwelling and the land it is located on may file for Homestead Credit. To qualify for the credit, the property owner must be a resident of Iowa and actually live on the property on July 1st and for at least six months of every year. It is the responsibility of the property owner to file.

The current credit is equal to the actual tax levy on the first $4,850 of actual value.

Disabled veterans are allowed to claim a Homestead Credit that would be equal to the entire amount of taxes levied on the homestead property. 

A property owner may have only one Homestead Credit on one parcel in the state.

Applications must be filed by July 1st of the year the credit is claimed. Once approved, the credit remains in effect until the owner moves or sells the property.

Military Tax Exemption

(Code of Iowa, Chapter 426A) To file for the exemption, the property owner must be a resident of Iowa and meet one of the following qualifications:

  1. Honorably discharged veteran who served in an eligible service period.
  2. Honorably discharged veteran who served for a minimum of 18 months, or for fewer than 18 months because of a service-related injury.
  3. Former member, or member who is currently serving, of Reserve Forces or Iowa National Guard who has served at least 20 years.
  4. Member of Reserve Forces or Iowa National Guard who was activated for Federal duty, not including training, for a minimum of 90 days.
  5. Former member of the Armed Forces whose enlistment would have occurred during the Korean Conflict but chose to serve 5 years in the Reserve Forces.

New applications must be made with the Assessor on or before July 1 of the year the exemption is first claimed. As with the Homestead Tax Credit, the exemption remains in effect until the property owner is no longer eligible. This exemption is worth the taxes calculated on $2,778 for WWI veterans and $1,852 for all others after that time.

It is the responsibility of each person who qualifies for and wishes to receive a military exemption to make an application with the county assessor and also have their discharge papers (DD214) on file in the Recorder's Office. A property owner may have only one Military Tax Exemption on one parcel in the state. The exemption remains in effect until the property is sold or the owner moves out of the state.

Family Farm Tax Credit

(Code of Iowa, Chapter 425A) Property owners of 10 or more acres of agricultural land, farmed by the owner or a qualifying family member may apply. Qualifying family members include parents, children, grandparents, grandchildren, brother, sister, aunt, uncle, niece, or nephew. Cousins do not qualify.

If a claim for the family farm credit is filed by November 1, 2001, or thereafter, and approved, further filing is not required provided the claimant owns the property on July 1 of subsequent years and the designated person actively engaged in farming the property remains the same.

If the ownership changes, the new owner must re-file for the credit, and if the "designated person" changes, the owner must re-file for the credit. The owner must notify the Assessor in writing of a change in the "designated person". Failure to do so may result in a penalty.

Forest Reserve Tax Exemption

(Code of Iowa, Chapter 427C) Property owners of 2 or more eligible acres of land containing at least 200 trees per acre may qualify for Forest Reservation tax exemption. Once approved, the exemption continues as long as the land remains eligible or until the owner requests that the exemption be removed. Livestock shall not be permitted upon a Forest Reservation. Forest Reservations shall not be used for economic gain other than the gain from raising forest trees. The filing deadline is February 1st. It is the responsibility of the property owner to file.

Fruit Tree Tax Exemption

(Code of Iowa, Chapter 427C) Property owners of 2 or more eligible acres of land containing at least 40 apple trees or at least 70 of other properly maintained fruit trees per acre may file for fruit tree reserve tax exemption. The exemption is for a period of eight years after planting. The filing deadline is February 1st. It is the responsibility of the property owner to file.

State Homestead Tax Credit

Description: Originally adopted to encourage homeownership through property tax relief. The current credit is equal to the actual tax levy on the first $4,850 of actual value.

Eligibility: Must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes, and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible.

Filing Requirements: Claim must be filed on or before July 1. The claim is allowed for successive years without further filing as long as eligible.

Not For Profits

(Code of Iowa, Chapter 427C) Certain organizations such as churches, charitable and benevolent organizations may be eligible for property tax exemption. If an additional property is acquired by an exempt organization, an exempt application must be completed for the new property. The application must be made by February 1st in the year in which the exemption is to be claimed. Once approved, the exemption stays in effect until the property is sold, the exempt status of the organization changes, or the property is used for pecuniary profit.

Contact Information


Shelby County Courthouse
612 Court Street
Harlan, Iowa 51537