How to apply for Iowa Disabled Veteran Homestead Property Tax Credit (100% of property tax)

Who it's for

This Iowa credit pays the entire property tax on the home of a veteran with a permanent service-connected disability rating of 100%, or a permanent and total rating based on individual unemployability paid at the 100% rate. There is no income limit. The veteran must own and live in the home as a homestead. For applications received on or after July 1, 2026, the credit covers the home and up to one-half acre, not including outbuildings. A surviving spouse who inherits the home can keep the credit until moving or remarrying, and a surviving spouse who gets VA Dependency and Indemnity Compensation (DIC) qualifies even after remarrying. File the Disabled Veteran Homestead Tax Credit application (Form 54-049) together with the Homestead Tax Exemption form (54-028) with your assessor by July 1. You do not need to reapply each year.

What you'll need

• Disabled Veteran Homestead Tax Credit application (Form 54-049) and Homestead Tax Exemption form (54-028)
• DD-214 or equivalent discharge document
• VA Benefit Summary Letter (award letter) showing the 100% rating or individual unemployability paid at the 100% rate, dated within the last 12 months
• Surviving spouses: a current DIC or CPD letter

Where to apply

Step by step

1. Check that you qualify. You must own and live in the home as your homestead. This credit is for a veteran with a permanent service-connected disability rating of 100%, or a permanent and total rating based on individual unemployability paid at the 100% rate. There is no income limit. A surviving spouse who inherits the home may keep the credit until moving or remarrying, and a surviving spouse who gets VA Dependency and Indemnity Compensation may qualify even after remarrying.
2. Gather your required documents. Get the Disabled Veteran Homestead Tax Credit application (Form 54-049), the Homestead Tax Exemption form (54-028), your DD-214 or equivalent discharge document, and a VA Benefit Summary Letter dated within the last 12 months that shows the 100% rating or individual unemployability paid at the 100% rate. If you are a surviving spouse, get a current DIC or CPD letter.
3. Complete both forms. Fill out Form 54-049 and Form 54-028 fully and make sure the information matches your supporting documents.
4. Apply online through Iowa and submit both forms and your documents to your city or county assessor by July 1.
5. Ask the assessor if you have questions about special cases before you submit. Veterans rated below 100% may still qualify if the VA pays them at the 100% rate for individual unemployability. Surviving spouses who get DIC may qualify even if the veteran was not rated 100%. Do not claim this credit if you are also taking the Military Service Property Tax Exemption.
6. Keep copies of everything you submit for your records. The assessor and county board of supervisors decide the claim.

What to expect: After you apply, your assessor and the county board of supervisors review your claim and decide if you qualify. Processing times vary, so ask the assessor for an estimate if needed. You do not need to reapply each year, but you should tell the assessor if you no longer qualify.

Renewals

one-time application; tell the assessor if you no longer qualify