Iowa has statutory provision for automatic adjustment of personal exemptions to the rate of inflation. IA-1040, Schedule B . Click here for instructions for downloading. The sales tax rate in Iowa is 5 percent. Typical improvements include a building, house or mobile home, fences, and paving.
Homeowners pay less than half of the property tax collected each year in Iowa.
Farmers pay 21 percent and businesses and industry pay a total of 23 percent. Utility companies, including railroads, pay 10 percent. The tax rate differs in each locality and is a composite of county, city, school district and special levies. Property tax may be paid in two installments, the first of which becomes delinquent on October 1 and the second of which becomes delinquent on April 1. As a general rule, a husband and wife may file only one claim and must combine their incomes.