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Updated 2025 Tax Year

Butler County
Property Tax Guide

Everything you need to know about property taxes in Butler County, IA. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
7% of assessed value, varies by taxing district location, proposed 10% increase for 2025
1st Due
Mar 25
Exemptions
4+ Available
Section 1

How Property Tax Works

Butler County, Iowa operates on a property tax system that funds essential local services including schools, county government operations, emergency services, and infrastructure maintenance. Property taxes are the primary revenue source for these vital community services. The county's property tax rate is currently seven percent of assessed value, though a proposed 10% increase is under consideration for 2025, with final rates to be determined after public hearings scheduled for March 25, 2025.

Property tax rates in Butler County vary by location within the county due to different combinations of taxing districts, including school districts, city boundaries, and special service districts. The actual tax rate you pay depends on your specific property location and which taxing jurisdictions serve your area. Assessment increases for homestead properties may be limited through available tax credits, but these require separate applications and are not automatically applied to your property tax bill.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
Base County Rate7.00%Current base property tax rate for Butler County
Rural Services Supplemental0.07689%Additional levy for rural area services
School District LevyVariesRate depends on specific school district boundaries
City/Municipal LevyVariesApplied only to properties within city limits
Special DistrictsVariesAdditional rates for fire districts, library districts, etc.

Rates shown are for current levy year. Proposed rates for FY 2025-2026 include a potential 10% increase pending public hearings. Final rates will be announced after March 25, 2025. Your actual total rate depends on your property's location and applicable taxing districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Butler County, property taxes are due in two installments:

First Installment
Mar 25
Delinquent after Dec 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in Butler County are triggered by changes in property ownership, new construction, or significant improvements that increase assessed value during the tax year. These supplemental taxes are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year remaining after the change occurs.

For example, if you purchase a home in Butler County that was previously assessed at $200,000 but sells for $350,000, triggering a reassessment, you may receive a supplemental tax bill for the increased assessed value. The supplemental amount would be calculated on the assessment increase, applied for the remaining months of the current tax year. New construction or major improvements completed during the year are similarly subject to supplemental taxation based on the added value.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: -$4,850 (estimated, requires application)
  • Net Taxable Value: $295,150
  • Tax Rate: 7.0% + applicable districts (~8.5% total estimated)
  • Annual Tax: $25,088
  • Monthly Escrow: $2,091

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$4,850 (estimated, requires application)
  • Net Taxable Value: $595,150
  • Tax Rate: 8.5% (estimated with districts)
  • Annual Tax: $50,588
  • Monthly Escrow: $4,216

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: -$4,850 (estimated, requires application)
  • Net Taxable Value: $995,150
  • Tax Rate: 8.5% (estimated with districts)
  • Annual Tax: $84,588
  • Monthly Escrow: $7,049

Note: Tax credits require separate application and are not automatic. Rates vary by specific taxing districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Butler County require property tax escrow accounts, collecting monthly payments along with your mortgage payment. Your lender will pay your property taxes directly to Butler County when due. The first installment is typically due by April 1st, and the second installment by October 1st for the current tax year.

Your lender estimates annual property taxes and divides by 12 for monthly escrow payments. They must maintain an escrow account analysis and may adjust monthly payments annually based on actual tax bills and account balance. You'll receive an annual escrow statement showing all deposits, payments, and any surplus or shortage. If property taxes increase due to reassessment or rate changes, your monthly escrow payment will be adjusted accordingly. Verify that your lender has current exemption and credit information to ensure accurate tax calculations.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Butler County property taxes due for the current fiscal year? A: The first installment is due by April 1, 2026, and the second installment is due by October 1, 2026.

Q: What tax credits are available and do I need to apply? A: The primary credit is the Homestead Credit for owner-occupied residences. You must apply once with the county assessor, and it continues as long as you remain eligible. Applications received after July 1 apply to the next assessment year.

Q: How does the Homestead Credit work? A: The Homestead Credit limits annual assessment increases rather than reducing market value. You must be an Iowa resident, file Iowa income taxes, and own and occupy the property as your homestead. You cannot have homestead credits on multiple Iowa properties.

Q: What are the eligibility requirements for the Homestead Credit? A: You must be an Iowa resident filing Iowa income taxes, own and occupy the property as your primary residence, and not have a homestead credit on another Iowa property.

Q: When does the county conduct property assessments? A: Iowa conducts reassessments in odd-numbered years. Tentative and final equalization orders are issued by the Director of Revenue and Finance.

Q: What happens if I pay my taxes late? A: Late payments are subject to penalties and interest. The county holds an annual tax sale for delinquent properties, with the 2025 tax sale scheduled for Monday, June 16, 2025, beginning at 9:00 AM.

Q: Can I pay property taxes online? A: Contact the Butler County Treasurer's office for current online payment options and accepted payment methods.

Q: How do special district taxes affect my bill? A: Your location determines which taxing districts apply to your property, including school districts, city limits, fire districts, and other special services. These vary throughout Butler County.

Q: How can I appeal my property assessment? A: Contact the Butler County Assessor's office for the appeals process and deadlines, typically following reassessment years.

Q: Where can I get more information about exemptions and credits? A: Check with the Butler County Assessor for available exemptions and credits specific to your situation, as requirements and applications vary by program type.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
Property Taxation - Butler County Iowabutlercounty.iowa.gov
02
Local Government Property Valuation Systembutlercounty.iowa.gov
03
County
3/12/24, 9:51 AM - Butler County Iowabutlercounty.iowa.gov
04
Tax Doc
notice to tax sale purchasers of the terms and conditionsbutlercounty.iowa.gov
05
File a Homestead Exemptioniowa.gov
06
Tax Doc
Property Taxco.washington.ia.us
07
State
in the united states bankruptcy courtgovinfo.gov
08
Tax Doc
Homestead Tax Credit and Exemption | Department of Revenuerevenue.iowa.gov
09
RESOLUTION #23-2025butlercounty.iowa.gov
10
County
proposed property tax levy - Butler County Iowabutlercounty.iowa.gov
All sources verified as of 2025 Tax Year

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