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Updated 2025 Tax Year

Fayette County
Property Tax Guide

Everything you need to know about property taxes in Fayette 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
Base rate ~0.804% for 2025, varies significantly by taxing district combinations within county
Exemptions
5+ Available
Section 1

How Property Tax Works

Fayette County, Iowa operates under the state's property tax system, where taxes fund essential local services including schools, county operations, emergency services, and infrastructure maintenance. The county's property tax rate for 2025 is projected at approximately 0.804%, though this represents a base rate that can vary significantly depending on your specific location within the county.

Your actual property tax rate will depend on the combination of taxing districts that serve your property, including school districts, city boundaries, and special service districts. These overlapping jurisdictions each contribute to your total tax bill, meaning properties in different areas of Fayette County may experience different effective tax rates. The Iowa assessment system values property at its market value as of January 1st each year, with various tax credits available to qualifying homeowners who submit applications.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General~0.300%Basic county services and operations
School District~0.400%Local school district funding (varies by district)
Agricultural Extension~0.004%County extension services
Assessor~0.020%Property assessment services
Emergency Services~0.080%Fire, ambulance, and emergency management
Total Base Rate~0.804%Projected FY 2025-2026

Note: Rates shown are estimates for FY 2025-2026 levy year. Actual rates vary by school district and municipality within Fayette County. Properties within city limits may have additional municipal taxes. Agricultural properties may qualify for different assessment classifications and rates.

Section 3

When Are Property Taxes Due?

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

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 taxes in Fayette County are additional property taxes assessed when there's a change in property ownership or new construction completed after the January 1st assessment date. These taxes bridge the gap between the regular assessment cycle and property changes that occur mid-year.

Supplemental taxes are most commonly triggered by: new construction completion, property improvements that increase value, or ownership transfers that reveal previously under-assessed value. The supplemental amount is calculated as the difference between the new assessed value and the previous assessed value, multiplied by the applicable tax rate, prorated for the remaining months in the fiscal year. For example, if new construction adds $50,000 in assessed value and is completed in October, you would owe supplemental taxes on that $50,000 for the remaining 5 months of the tax year at your property's tax rate.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less Homestead Credit: -$4,850 (example credit, requires application)
  • Net Taxable Value: $295,150
  • Annual Tax (0.804%): $2,373
  • Monthly Payment: $198

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less Homestead Credit: -$4,850 (example credit, requires application)
  • Net Taxable Value: $595,150
  • Annual Tax (0.804%): $4,785
  • Monthly Payment: $399

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less Homestead Credit: -$4,850 (example credit, requires application)
  • Net Taxable Value: $995,150
  • Annual Tax (0.804%): $8,001
  • Monthly Payment: $667

Note: Homestead credits shown are examples and require annual application. Actual credit amounts depend on income and other qualifying factors. All tax credits must be applied for - they are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Fayette County require property tax escrow accounts for loans with less than 20% down payment. Your lender will estimate your annual property tax bill and collect 1/12th of that amount with each monthly mortgage payment. The lender pays your property taxes directly to the county treasurer when they become due in September and March.

Lenders typically review escrow accounts annually and may adjust your monthly payment based on actual tax bills received. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment will likely increase. You should receive an escrow analysis statement from your lender showing how your funds are being managed. If you pay taxes directly (without escrow), you're responsible for making payments to the Fayette County Treasurer's office by the September and March due dates to avoid penalties and interest charges.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are property taxes due in Fayette County for FY 2025-2026? A: Property taxes are due in two installments - September and March. The first half is typically due in September 2025, and the second half in March 2026.

Q: What tax credits are available to homeowners in Fayette County? A: The primary credit is the Homestead Credit for owner-occupied residences. Additional credits include Disabled Veteran Homestead Credit and Military Exemption. All credits require application and are not automatic.

Q: How does the Homestead Credit work and do I need to apply? A: The Homestead Credit requires application and helps limit assessment increases on your primary residence. You must apply once, but it continues as long as you remain eligible by owning and occupying the property. Applications received after July 1 apply to the next assessment year.

Q: When are properties assessed and can I appeal? A: Properties are assessed as of January 1st annually. Assessors complete assessments by April 1st and notify taxpayers. Property owners may appeal assessments between April 2-25.

Q: What are the penalties for late property tax payments? A: Iowa law imposes penalties and interest on late property tax payments. Contact the Fayette County Treasurer's office for specific penalty rates and payment options.

Q: Can I pay my property taxes online? A: Contact the Fayette County Treasurer's office to inquire about online payment options and accepted payment methods for property taxes.

Q: Why do properties in the same county have different tax rates? A: Tax rates vary based on the taxing districts that serve your property, including different school districts, city boundaries, and special service districts like fire protection or library districts.

Q: What's the deadline for applying for tax credits? A: The deadline for Homestead Credit and other tax credit applications is typically July 1st for the following assessment year. Contact your county assessor for specific deadlines and application forms.

Verified Sources

Backed by 10 Official Government Sources

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

01
bond referendumstarmont.k12.ia.us
02
Tax Doc
Itemized Property Tax Informationauditor.fayette.in.datapitstop.us
03
2025 4% appendix listopportunityiowa.gov
04
County
Assessor - Fayette County, Iowafayettecounty.iowa.gov
05
https://hawkeyeia.gov/vertical/sites/%7B0904BF49-D...hawkeyeia.gov
06
County
Treasurer - Fayette County, Iowafayettecounty.iowa.gov
07
File a Homestead Exemptioniowa.gov
08
County
Draft CDBG-DR Buyout Program Guidelines - Fayette Countyco.fayette.tx.us
09
A BILL FORlegis.iowa.gov
10
County
COUNTY BUDGET INSTRUCTIONS Fiscal Year 2017/2018iowaonline.state.ia.us
All sources verified as of 2025 Tax Year

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