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Updated 2025 Tax Year

Johnson County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
6.73092% for FY 2025-2026 (varies by location within county based on taxing districts)
1st Due
Sep 30
2nd Due
Mar 31
Exemptions
6+ Available
Section 1

How Property Tax Works

Johnson County, Iowa operates on a property tax system that funds essential local services including schools, county government, cities, and various special districts. Property owners pay taxes based on their property's assessed value multiplied by the applicable tax rate, which varies by location within the county due to different combinations of taxing authorities and special districts.

For the FY 2025-2026 tax year, the projected overall tax rate for Johnson County is 6.73092%, though this varies significantly depending on your specific location within the county. Rural agricultural properties saw modest assessment increases averaging 0.4%, while rural residential properties increased 1.2% on average. Iowa City residential properties also experienced relatively moderate assessment growth. Property taxes in Johnson County fund critical services including K-12 education, county operations, municipal services, libraries, and various special districts.

The actual tax rate you pay depends on which taxing districts serve your property location. Different areas within Johnson County may have varying rates due to school district boundaries, municipal boundaries, and special assessment districts for services like drainage, lighting, or infrastructure improvements.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
County General~1.5-2.5%County government operations and services
School Districts~3.0-4.0%K-12 education funding (varies by district)
Municipal~0.5-1.5%City services (varies by municipality)
Special Districts~0.1-0.8%Libraries, drainage, rural improvement zones
Total Combined Rate~6.73%FY 2025-2026 projected county average

Note: These rates apply to the FY 2025-2026 levy year and vary significantly based on your property's location within Johnson County. Properties in different school districts, municipalities, or special taxing districts will have different total rates. Contact the Johnson County Assessor's Office for your specific rate based on your property's taxing districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Johnson 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 Johnson County are additional property tax bills issued when there are mid-year changes to a property's assessed value or ownership. Common triggers include new construction completion, major improvements, ownership transfers that remove agricultural exemptions, or corrections to the original assessment.

When supplemental taxes are issued, they cover the period from when the change occurred through the end of the current fiscal year. The supplemental amount is calculated by applying the current year's tax rate to the difference between the old and new assessed values, then prorating for the applicable time period.

For example, if you complete a $100,000 home addition in January and it's assessed in March, you would receive a supplemental tax bill for the added value ($100,000 × 6.73% × 9/12 months = approximately $505) covering March through June of that fiscal year. The full increased assessment would then be included in the following year's regular tax bill.

Example Calculation

Example 1: $300,000 Home with Homestead Credit

  • Assessed Value: $300,000
  • Homestead Credit Applied: Limits assessment increases
  • Net Taxable Value: ~$295,000 (after credit benefit)
  • Tax Rate: 6.73092%
  • Annual Tax: $1,986
  • Monthly Escrow: $165

Example 2: $600,000 Home with Homestead Credit

  • Assessed Value: $600,000
  • Homestead Credit Applied: Limits assessment increases
  • Net Taxable Value: ~$595,000 (after credit benefit)
  • Tax Rate: 6.73092%
  • Annual Tax: $4,005
  • Monthly Escrow: $334

Example 3: $1,000,000 Home with Homestead Credit

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: Limits assessment increases
  • Net Taxable Value: ~$995,000 (after credit benefit)
  • Tax Rate: 6.73092%
  • Annual Tax: $6,697
  • Monthly Escrow: $558

Note: Homestead Credit requires application and helps limit year-over-year assessment increases. Tax credits are NOT automatic and must be applied for with the Johnson County Assessor's Office. Actual taxes may vary based on your specific taxing districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Johnson County require property tax escrow accounts to ensure timely tax payments. Your lender collects 1/12 of your estimated annual property tax bill with each monthly mortgage payment, holding these funds in escrow until tax payments are due.

Johnson County property taxes are paid in two installments: the first installment is due September 1, 2025, and the second installment is due March 1, 2026. Alternatively, you can pay the full annual amount by September 30, 2025. Your lender will typically pay from escrow on these due dates. After payments are made, you should receive documentation showing the payment was made on your behalf.

Lenders conduct annual escrow analyses to ensure adequate funds are collected. If your property taxes increase significantly, your monthly escrow payment may increase. You have the right to review escrow account statements and question any discrepancies. If you pay taxes directly rather than through escrow, mark your calendar for the September and March due dates to avoid penalties that begin October 1st for the first installment.

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 Johnson County property taxes due for FY 2025-2026? A: First installment is due September 1, 2025, and second installment is due March 1, 2026. You can pay the full amount by September 30, 2025. Late penalties begin October 1, 2025.

Q: What is the Homestead Credit and do I qualify? A: The Homestead Credit is available to homeowners who own and occupy their residence as their primary home. It helps limit assessment increases from year to year. This is a one-time application that remains valid as long as you own and occupy the property, but you MUST apply - it's not automatic.

Q: Are there additional tax credits for seniors? A: Beginning with assessment year 2023, homeowners aged 65 or older may claim a homestead exemption in addition to the homestead credit. This requires a separate application with the Johnson County Assessor's Office.

Q: How often are properties reassessed in Johnson County? A: Iowa law requires properties to be assessed annually as of January 1st. The assessor determines assessed values and classifications, which are then used to calculate taxes for the following fiscal year.

Q: Can I appeal my property assessment? A: Yes, you can appeal your assessment if you believe it's incorrect. Contact the Johnson County Assessor's Office for appeal procedures and deadlines, which typically occur in the spring following the January 1st assessment date.

Q: What happens if I pay my taxes late? A: Late penalties begin October 1, 2025 for the first installment. Continued non-payment can eventually lead to tax sale proceedings, so it's important to pay on time or contact the county treasurer if you're experiencing financial hardship.

Q: Can I pay my property taxes online? A: Contact the Johnson County Treasurer's Office for current online payment options and accepted payment methods. Many Iowa counties offer online payment systems for convenience.

Q: Why do tax rates vary within Johnson County? A: Different areas are served by different combinations of school districts, municipalities, and special districts (libraries, drainage districts, etc.). Your total rate depends on which taxing authorities serve your specific property location.

Q: Do I need to reapply for tax credits every year? A: The Homestead Credit is a one-time application that remains active as long as you own and occupy the property. However, other credits may require annual applications. Check with the Johnson County Assessor's Office about specific requirements for any credits you're claiming.

Q: What if I disagree with a supplemental tax bill? A: Contact the Johnson County Assessor's Office immediately to discuss the basis for the supplemental assessment. You may have appeal rights depending on the circumstances that triggered the supplemental bill.

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