Iowa Property Tax Proration Calculator

Selling a home in Iowa? Use this free calculator to estimate the property taxes you'll credit the buyer at closing—and learn why Iowa sellers often owe 8–14 months of property taxes at closing.

Enter the home's annual property taxes and your expected closing date to estimate the seller's property tax credit at closing. The calculator shows the estimated number of days owed, daily tax amount, and total proration.

Find Your Annual Net Property Taxes

Not sure what to enter? Find your property using your local assessor’s property search. Additional counties are available at the Beacon website.

Polk County  ·  Dallas County  ·  Warren County  ·  Madison County  ·  Story County  ·  Boone County  ·  Jasper County  ·  Marshall County  ·  Marion County  ·  Greene County  ·  Webster County  ·  Hamilton County  ·  Clarke County  ·  Lucas County

Iowa Property Taxes Are Paid in Arrears

The key to understanding property tax prorations is that Iowa property taxes are paid in arrears. This means that when you receive a property tax bill, you're paying taxes for a period that has already passed. We know, it's a bit of a pain in the rear.

When Are Iowa Property Taxes Due?

Iowa property taxes are paid in two installments:

• September 1: First-half payment is due. Interest begins October 1.

• March 1: Second-half payment is due. Interest begins April 1.

Both payments apply to the previous tax year. For example, property taxes payable in September 2026 and March 2027 cover the July 1, 2025 through June 30, 2026 tax year.

This delay between when property taxes accrue and when they're actually paid is why property tax prorations can be confusing when you sell a home.

Why Sellers Owe 8–14 Months of Taxes at Closing

Because Iowa property taxes are paid in arrears, a seller may still be responsible for taxes that have accrued but haven't yet been paid.

At closing, the buyer receives a credit for the seller's share of those unpaid property taxes. The buyer will eventually receive the tax bill and make the payment, so the seller's portion is accounted for at closing.

For most Iowa home sales, the seller's property tax proration represents approximately 8 to 14 months of taxes, depending on the closing date and where it falls in the property tax payment cycle.

What Affects the Amount?

The amount changes throughout the year based on your closing date and the most recent property tax payment. After a tax payment is made, the amount owed through closing is reduced. It then gradually increases as additional days of property taxes accrue.

This is why changing your closing date can change your property tax proration, even when the home's annual property tax amount stays the same.

FAQs

Do I Need to Bring Money to Closing?

Usually, no. The property tax proration is deducted from your proceeds at closing rather than paid separately out of pocket.

What If I Just Paid My Property Tax Bill?

The proration takes that payment into account. Your tax credit to the buyer is calculated based on the taxes that have accrued since the period covered by your most recent payment.

What If My Closing Date Changes?

Your property tax proration changes with it. Property taxes are prorated using a daily rate, so moving the closing date can increase or decrease the amount credited to the buyer.

Didn't I Already Pay These Taxes?

This is one of the most common points of confusion. Because Iowa property taxes are paid in arrears, being current on your tax bills doesn't mean all of the taxes attributable to your time as the owner have been paid yet.

You likely received a property tax credit from the seller when you purchased the home. When you sell, you'll provide a similar credit to your buyer. It's the same cycle continuing.

Selling a home in Central Iowa?

Property taxes are just one of the expenses that affect how much you'll walk away with when you sell. PROmetro Realty provides sellers with a detailed Estimate of Proceeds that breaks down your expected sale price, mortgage payoff, closing costs, property tax proration, and estimated net proceeds.

Want to know what your home could sell for and what you might walk away with? Learn more about selling with PROmetro Realty →

Don't Forget About Iowa Property Tax Exemptions

Iowa made an important change to its Homestead program in 2026. Beginning with the 2026 assessment year, the previous Homestead Tax Credit is replaced by a Homestead Tax Exemption equal to 10% of the home's taxable value, subject to minimum and maximum exemption amounts.

Because property taxes are paid in arrears, homeowners will see the effect of the new exemption on taxes payable in September 2027 and March 2028.

Already receiving the Homestead Credit? You generally do not need to reapply. Homeowners who received the credit or exemption before July 1, 2026 will automatically receive the new exemption in future years as long as they continue to qualify.

Age 65 or older? Eligible Iowa homeowners can also receive an additional $6,500 exemption from taxable value. This is in addition to the new Homestead Tax Exemption.

Disabled veterans: The 2026 change does not eliminate Iowa's Disabled Veteran Homestead Tax Credit for eligible veterans.

If you've recently purchased a home and haven't previously applied, be sure to file for the Iowa Homestead Tax Exemption with your county assessor.