Iowa housing costs at a glance
| Iowa | |
|---|---|
| Median home value (Zillow) | $240,000 |
| Average effective property tax | 1.25% |
| Typical rate for a new buyer (calculator default) | 1.4% |
| Average homeowners insurance ($300k dwelling) | $2,508 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Iowa home for $240,000, 20% down, 6.5% 30-year fixed: principal and interest $1,214 + property tax $280 + insurance $209 = about $1,703 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Iowa property tax
Iowa's average effective property tax rate is about 1.25% of value, one of the higher rates outside the Northeast. Only part of a home's assessed value is taxed: the state's residential rollback percentage, set every year, cuts the taxable value roughly in half. Owners of a primary residence should file for the homestead credit with the county assessor.
Other Iowa costs
- Transfer tax: $0.80 per $500 of the price (0.16%), usually paid by the seller.
- Insurance: about $2,510 a year on average, because of hail and derecho storms.
- See also the Iowa paycheck calculator for the 3.8% income tax.
Other states
See also the Iowa paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the property tax rate in Iowa?
About 1.25% of home value on average.
What is the monthly payment on a median-priced Iowa home?
On a $240,000 home with 20% down at 6.5%, principal and interest are about $1,214; with property tax at 1.4% and average insurance the total is about $1,703 a month.
What is the Iowa residential rollback?
A state-set percentage that limits how much of a home's assessed value is taxable; it roughly halves the taxable value.
How much is the transfer tax in Iowa?
$0.80 per $500 of the price (0.16%), usually paid by the seller.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Iowa Department of Revenue – property tax
- FHFA – 2026 conforming loan limits
- U.S. Census Bureau ACS 2024 – real estate taxes (via NAHB / Construction Coverage)
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026