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Updated 2025 Tax Year

Henry County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Approximately 1.5% effective rate, varies by taxing district combinations within county
1st Due
Sep 30
2nd Due
Mar 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Henry County, Iowa operates under the state's property tax system to fund essential local services including schools, roads, emergency services, and county operations. Property taxes in Henry County are assessed annually based on the assessed value of real estate and personal property, with the Iowa Department of Revenue providing oversight and the county assessor determining individual property valuations.

Property tax rates in Henry County vary by location within the county due to different combinations of taxing districts, including school districts, cities, rural fire districts, and other special service areas. For the 2025 tax year, Henry County has adopted a millage rate increase of 4.75 percent from the previous year. The effective tax rate typically ranges from approximately 1.5% to 2.5% of assessed value, depending on your specific location and the combination of taxing districts that serve your property.

Property owners should note that Iowa uses a consolidated tax rate system, meaning your single property tax bill includes levies from all applicable taxing authorities. The actual amount you pay depends not only on your property's assessed value but also on which school district, city, and special districts serve your property location within Henry County.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
County General Fund~$3.50-4.00 per $1,000Basic county services, roads, administration
School Districts~$12.00-16.00 per $1,000Varies by district (New London, Mount Pleasant, Winfield-Mount Union)
City Levies~$8.00-15.00 per $1,000Municipal services (varies by city)
Agricultural Extension~$0.20 per $1,000County extension services
Mental Health Levy~$0.50 per $1,000Regional mental health services
Emergency Services~$1.00-3.00 per $1,000Fire protection, ambulance (varies by district)
Total Consolidated Rate~$25.00-40.00 per $1,000Combined rate for FY 2025-2026

Note: Rates shown are estimates for FY 2025-2026 levy year reflecting the 4.75% increase. Actual rates vary significantly by specific location within Henry County based on your combination of taxing districts. Contact the Henry County Assessor for your exact consolidated tax rate.

Section 3

When Are Property Taxes Due?

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

First Installment
Sep 30
Delinquent after Dec 10
Second Installment
Mar 31
Delinquent after Apr 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 taxes in Henry County are additional property tax assessments that occur outside the regular annual billing cycle. These are typically triggered by changes in property ownership, new construction completion, or property improvements that increase assessed value after the annual assessment date but before the end of the tax year.

When supplemental taxes are assessed, they are calculated based on the difference between the old and new assessed values, multiplied by the applicable tax rate, and prorated for the remaining months in the tax year. For example, if you complete a $50,000 home addition in January that increases your assessed value, you may receive a supplemental tax bill covering the additional tax liability for the remaining portion of the fiscal year.

Supplemental tax bills are issued separately from your regular property tax statements and have their own due dates, typically 30 days from the bill date. Property owners should budget for potential supplemental taxes when making significant property improvements or purchasing newly constructed properties, as these additional assessments can represent substantial unexpected tax obligations during the year.

Example Calculation

Example 1: $300,000 Home in Mount Pleasant

  • Market Value: $300,000
  • Assessed Value (100%): $300,000
  • Homestead Tax Credit Applied: -$4,850 (requires application)
  • Net Taxable Value: $295,150
  • Tax Rate: $32.50 per $1,000
  • Annual Tax: $9,592
  • Monthly Escrow: $799

Example 2: $600,000 Home in New London

  • Market Value: $600,000
  • Assessed Value (100%): $600,000
  • Homestead Tax Credit Applied: -$4,850 (requires application)
  • Military Exemption Credit: -$1,852 (if applicable, requires application)
  • Net Taxable Value: $593,298
  • Tax Rate: $29.75 per $1,000
  • Annual Tax: $17,650
  • Monthly Escrow: $1,471

Example 3: $1,000,000 Property in Rural Henry County

  • Market Value: $1,000,000
  • Assessed Value (100%): $1,000,000
  • Homestead Tax Credit Applied: -$4,850 (requires application)
  • Agricultural Land Credit: -$12,500 (if applicable, requires application)
  • Net Taxable Value: $982,650
  • Tax Rate: $26.80 per $1,000
  • Annual Tax: $26,335
  • Monthly Escrow: $2,195

All credits shown require annual application and approval. Rates are estimates for FY 2025-2026.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Henry County require property tax escrow accounts for borrowers with less than 20% down payment or upon borrower request. Your lender collects monthly escrow payments along with your mortgage payment, holding these funds in a separate account to pay your property taxes when due in September and March.

Lenders typically collect escrow payments based on the previous year's tax bill plus a cushion amount (usually 1-2 months of taxes). After paying your taxes, the lender provides an annual escrow analysis showing deposits, payments, and any required adjustments to your monthly payment. If property taxes increase significantly, you may face an escrow shortage requiring either a lump sum payment or increased monthly payments.

Property owners should verify that their lender pays taxes on time, as late payment penalties begin accruing immediately after the due dates. You can monitor payments through the Henry County Treasurer's online system or by contacting their office directly. If you pay taxes directly without escrow, remember that Iowa's payment schedule splits your annual tax bill between September and March due dates, with the current March payment deadline of April 1st for the 2025-2026 tax year.

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 property taxes due in Henry County? A: Property taxes for FY 2025-2026 are due in two installments: September 2025 and March 2026, with the March payment deadline extended to April 1, 2026.

Q: What is the Homestead Tax Credit and how do I apply? A: The Homestead Tax Credit provides property tax relief for owner-occupied residences by limiting annual assessment increases and providing a credit amount. You must file an application with the Henry County Assessor's office by July 1st. This is NOT automatic and requires annual application for first-time filers.

Q: Are there military property tax credits available? A: Yes, Iowa offers military exemption credits for qualifying disabled veterans and active military personnel. Applications must be filed with the Henry County Assessor's office and require supporting documentation of military service and disability ratings where applicable.

Q: What happens if I pay my property taxes late? A: Late payments incur interest penalties immediately after the due date. Contact the Henry County Treasurer's office for current penalty rates and payment options for delinquent taxes.

Q: How often are properties reassessed in Henry County? A: Iowa requires property reassessment every two years, with Henry County conducting reassessments on the state-mandated schedule. Property owners receive assessment notices and have appeal rights through the local Board of Review.

Q: Can I pay property taxes online? A: Yes, Henry County offers online payment options through their website. However, non-residents may be subject to a $10.00 convenience fee unless they can provide proof of property tax payments in Henry County.

Q: How do special district taxes affect my bill? A: Your location determines which special districts serve your property (fire protection, library, etc.). Each district adds its levy to your consolidated tax rate, which is why rates vary significantly across different areas of Henry County.

Q: What business property tax credits are available? A: Iowa offers various business property tax credits including industrial machinery exemptions and commercial/industrial replacement credits. These require separate applications and have specific qualification criteria - contact the Henry County Assessor for details.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Henry County Board of Review during the specified appeal period, typically in April-May. You'll need comparable property data and evidence supporting your claimed value.

Q: What documentation do I need for tax credit applications? A: Requirements vary by credit type, but generally include proof of ownership, occupancy verification for homestead credits, military service records for veteran credits, and income documentation for certain need-based programs. Contact the Henry County Assessor's office for specific requirements.

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