Iowa Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Iowa gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Iowa wipes out the entire property tax bill on the homestead of a veteran with a permanent 100% service-connected rating (or permanent-and-total TDIU paid at the 100% rate), and of a surviving spouse or child receiving DIC. Other honorably discharged veterans can claim a Military Service Exemption of $4,000 of taxable value. Military retired pay and military survivor benefits are fully excluded from Iowa income tax at any age. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Iowa

Iowa property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled Veteran Homestead Property Tax Credit	Iowa homestead owner-occupant who is a veteran (Iowa Code 35.1) or former National Guard member with a permanent service-connected disability rating of 100%, or a permanent and total disability rating based on individual unemployability compensated at the 100% rate, as certified by the VA; also a veteran who acquired the home under 38 U.S.C. 21.801/21.802 (before Aug. 6, 1991) or 2101/2102 (VA specially adapted housing). A surviving spouse or child receiving Dependency and Indemnity Compensation (DIC) qualifies (a surviving spouse on DIC stays eligible after remarriage); a surviving spouse of a qualifying owner keeps the credit already granted until changing homesteads or remarrying. Must also qualify for the homestead exemption (own and occupy on July 1 and at least 6 months a year, Iowa income-tax resident). No income limit.	Full exemption: credit equals 100% of the property tax levied on the homestead. For applications filed on or after July 1, 2026, the homestead is limited to one-half acre and excludes appurtenances; there is no valuation cap.	File Form 54-049 together with Homestead Tax Exemption Form 54-028 with the city or county assessor by July 1 (later filings apply to the next assessment year). Attach a DD-214 or equivalent and a VA Benefit Summary Letter showing the rating, dated within the last 12 months (surviving spouses: DIC or CPD letter where required). No annual refiling. Electing this credit bars any other veterans' real property tax exemption, including the Military Service Exemption.	Iowa Department of Revenue
Military Service Property Tax Exemption	Iowa resident and domiciliary who is an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran as defined in Iowa Code 35.1(2)(a) or (b), or a former armed forces member with at least 18 months aggregate service discharged under honorable conditions (or fewer than 18 months if honorably discharged for a service-related injury). Includes Air Force, Merchant Marine and Coast Guard. Claimant or spouse must own the property on July 1; property may be a manufactured or mobile home. No income limit.	$4,000 of taxable value exempt (assessment years beginning on or after January 1, 2023; was $1,852 before 2023).	Record the discharge document (DD-214 or equivalent) with the county recorder, then file the military exemption claim on the assessor's form with the city or county assessor by July 1 of the first year claimed; it continues without refiling until the property is sold or a different property is designated. Cannot be combined with the Disabled Veteran Homestead Credit.	Iowa Code 426A.11

Is military retired pay taxed in Iowa?

Iowa state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully excluded. Military retirement pay and military survivor benefits received under 10 U.S.C. 1447 are excluded from Iowa individual income tax regardless of age, to the extent included in federal adjusted gross income.	No dollar limit (100% exclusion); effective for tax years beginning on or after January 1, 2014.	revenue.iowa.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Iowa veteran benefits

Vehicles and license plates

Iowa: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Registration fee exemption and free plates for seriously disabled veterans	Iowa-resident seriously disabled veteran who was provided a vehicle by the U.S. government under 38 U.S.C. 3901-3904 (VA automobile grant).	Exempt from the annual registration fee for that vehicle, plus one free set of regular or military-service special plates.	legis.iowa.gov
Veteran special registration plates	Honorably discharged veterans as defined in Iowa Code 35.1.	Specialty veteran plates available; personalized-plate fee applies if personalized.	dva.iowa.gov

Hunting, fishing and other licenses

Iowa: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Veteran designation on driver's license or ID	Honorably discharged veterans with a DD-214 or equivalent discharge document.	$10 duplicate license/ID fee.	dva.iowa.gov
Lifetime fishing or combined hunting and fishing license for disabled veterans and former POWs	Iowa resident who served in the U.S. armed forces on federal active duty and who was disabled (entitled to a VA service-connected rating under 38 U.S.C. ch. 11) or was a prisoner of war during military service.	One-time fee set by DNR rule; the Iowa Department of Veterans Affairs lists it as $7.	legis.iowa.gov
Annual armed forces fishing or combined hunting and fishing license	Iowa resident who has served in the U.S. armed forces on federal active duty.	Fee set by rule, not to exceed $5 per year.	legis.iowa.gov

Education

Iowa: education for veterans
Benefit	Who qualifies	Amount	Source
Children of the Fallen (Branstad-Reynolds) Scholarship	Children of service members who died in active status after September 11, 2001.	Help paying for college; the state does not publish a fixed amount on its benefits page.	dva.iowa.gov

Employment

Iowa: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans preference in public employment	Veterans (Iowa Code 35.1 definition, Iowa residency not required) applying for jobs with the state, counties, cities, school districts and public works.	Preference over other applicants of no greater qualifications; point-rated exams use the municipal civil service preference in Iowa Code 400.10.	legis.iowa.gov

State veterans homes

Iowa: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
Iowa Veterans Home (Marshalltown)	Honorably discharged veterans and their dependent spouses, surviving spouses of honorably discharged veterans, and Gold Star parents; eligibility follows VA health care eligibility (38 U.S.C. 1710).	Long-term nursing and residential care; cost depends on the resident's ability to pay.	legis.iowa.gov

Other benefits

Iowa: other benefits for veterans
Benefit	Who qualifies	Amount	Source
Injured Veterans Grant	Service members or veterans seriously injured in the line of duty in a hazardous area after September 11, 2001 (including where receiving combat or hazardous duty pay).	Up to $10,000, paid in $2,500 increments.	dva.iowa.gov
Military Homeownership Assistance grant	Service members who served on active duty after September 11, 2001 and purchased an Iowa home after March 10, 2005, or who served 90 days of active service between Aug. 2, 1990 and Apr. 6, 1991.	$5,000 grant toward down payment/closing costs.	dva.iowa.gov
Iowa Veterans Cemetery (Van Meter) burial	Honorably discharged veterans; spouses and dependents.	No charge for veterans; $300 fee for spouses and dependents.	dva.iowa.gov

Common questions

Does Iowa have a property tax exemption for disabled veterans?

Iowa lists 2 veteran property tax benefits. The main one: Disabled Veteran Homestead Property Tax Credit. Who qualifies: Iowa homestead owner-occupant who is a veteran (Iowa Code 35.1) or former National Guard member with a permanent service-connected disability rating of 100%, or a permanent and total disability rating based on individual unemployability compensated at the 100% rate, as certified by the VA; also a veteran who acquired the home under 38 U.S.C. 21.801/21.802 (before Aug. 6, 1991) or 2101/2102 (VA specially adapted housing). A surviving spouse or child receiving Dependency and Indemnity Compensation (DIC) qualifies (a surviving spouse on DIC stays eligible after remarriage); a surviving spouse of a qualifying owner keeps the credit already granted until changing homesteads or remarrying. Must also qualify for the homestead exemption (own and occupy on July 1 and at least 6 months a year, Iowa income-tax resident). No income limit.. Amount: Full exemption: credit equals 100% of the property tax levied on the homestead. For applications filed on or after July 1, 2026, the homestead is limited to one-half acre and excludes appurtenances; there is no valuation cap. (Iowa Department of Revenue - Disabled Veteran Homestead Tax Credit Application (54-049)).

How do I apply for the Iowa veteran property tax exemption?

File Form 54-049 together with Homestead Tax Exemption Form 54-028 with the city or county assessor by July 1 (later filings apply to the next assessment year). Attach a DD-214 or equivalent and a VA Benefit Summary Letter showing the rating, dated within the last 12 months (surviving spouses: DIC or CPD letter where required). No annual refiling. Electing this credit bars any other veterans' real property tax exemption, including the Military Service Exemption. (Iowa Department of Revenue - Disabled Veteran Homestead Tax Credit Application (54-049)).

Does Iowa tax military retirement pay?

Fully excluded. Military retirement pay and military survivor benefits received under 10 U.S.C. 1447 are excluded from Iowa individual income tax regardless of age, to the extent included in federal adjusted gross income. Amount or limit: No dollar limit (100% exclusion); effective for tax years beginning on or after January 1, 2014. (revenue.iowa.gov).

What other benefits do veterans get in Iowa?

Registration fee exemption and free plates for seriously disabled veterans (legis.iowa.gov); Veteran special registration plates (dva.iowa.gov); Veteran designation on driver's license or ID (dva.iowa.gov); Lifetime fishing or combined hunting and fishing license for disabled veterans and former POWs (legis.iowa.gov); Annual armed forces fishing or combined hunting and fishing license (legis.iowa.gov); Iowa Veterans Home (Marshalltown) (legis.iowa.gov); Veterans preference in public employment (legis.iowa.gov); Injured Veterans Grant (dva.iowa.gov); Military Homeownership Assistance grant (dva.iowa.gov); Children of the Fallen (Branstad-Reynolds) Scholarship (dva.iowa.gov); Iowa Veterans Cemetery (Van Meter) burial (dva.iowa.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Iowa senior property tax relief → Iowa state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →