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Updated 2025 Tax Year

Madison County
Property Tax Guide

Everything you need to know about property taxes in Madison 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
Approximately 1.25% effective rate, varies by taxing district and location within county
Exemptions
5+ Available
Section 1

How Property Tax Works

Madison County, Iowa operates under 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 services, with the county assessor determining property values and the county auditor collecting payments.

The effective property tax rate in Madison County is approximately 1.25% of assessed value for the 2025 tax year, though this rate varies significantly depending on your specific location within the county. Different areas are served by various special taxing districts including school districts, rural fire districts, and drainage districts, which can add additional levies to your tax bill. Your actual rate depends on which combination of these taxing districts serve your property.

Property taxes in Madison County are paid in two installments annually, with the first half due September 1st and the second half due March 1st of the following year. The county offers convenient online payment options and various tax credits for eligible property owners, though most credits require a separate application process.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General~$3.50 per $1,000Basic county services and operations
School District~$8.00-$10.00 per $1,000Varies by school district boundaries
Community College~$1.00 per $1,000Des Moines Area Community College levy
Agricultural Extension~$0.15 per $1,000County extension services
Assessor Levy~$0.30 per $1,000Property assessment operations
Rural Fire Districts~$1.50-$2.50 per $1,000Where applicable, varies by district
Drainage DistrictsVariesSpecial assessments where applicable

Rates shown are approximate for FY 2025-2026 and expressed per $1,000 of assessed value. Your actual total rate depends on which special taxing districts serve your property location. School district rates vary significantly between Winterset Community School District, Interstate 35 Community School District, and other districts within the county.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Madison 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 Madison County are additional property tax bills issued when there are mid-year changes to property ownership, value, or taxable status. The most common trigger is new construction or major improvements completed after the January 1st assessment date but before the end of the tax year.

When supplemental taxes are levied, they are calculated by applying the current tax rate to the difference between the old and new assessed values, prorated for the portion of the tax year remaining. For example, if you complete a $100,000 home addition in July, you would receive a supplemental bill for approximately half the annual tax increase (six months remaining in the tax year).

Property owners receive supplemental tax bills separately from regular tax statements, typically within 30-60 days of the assessment change. These supplemental amounts become due immediately upon issuance and follow the same delinquency rules as regular property taxes, becoming delinquent 30 days after the due date specified on the bill.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: -$4,850 (requires application)
  • Net Taxable Value: $295,150
  • Tax Rate: 1.25% ($12.50 per $1,000)
  • Annual Tax: $3,689
  • Monthly Escrow: $307

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$4,850 (requires application)
  • Net Taxable Value: $595,150
  • Tax Rate: 1.25% ($12.50 per $1,000)
  • Annual Tax: $7,439
  • Monthly Escrow: $620

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: -$4,850 (requires application)
  • Net Taxable Value: $995,150
  • Tax Rate: 1.25% ($12.50 per $1,000)
  • Annual Tax: $12,439
  • Monthly Escrow: $1,037

Note: Homestead credit amounts are approximate and require annual application. Credits reduce your tax bill directly, not your assessed value. Actual tax rates vary by specific taxing districts serving each property.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Madison County require property tax escrow accounts for loans with less than 20% down payment. Your lender collects monthly escrow payments along with your mortgage payment, typically 1/12th of your annual property tax bill plus a small cushion amount as required by federal law.

Lenders typically pay your property taxes directly to Madison County before each due date (September 1st and March 1st). The county auditor mails tax statements to both the property owner and mortgage company when applicable. You should receive a copy of your tax statement even with an escrow account to verify the amounts being paid on your behalf.

At least once annually, your lender must provide an escrow account analysis showing all deposits, payments, and any shortage or surplus. If your property taxes increase significantly due to reassessment or new special district levies, your monthly escrow payment will be adjusted accordingly. You can verify that your taxes were paid by checking the Madison County Auditor's online payment system or calling their office directly.

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 Madison County for the current tax year? A: For fiscal year 2025-2026, the first half is due September 1, 2025 and becomes delinquent October 1st. The second half is due March 1, 2026 and becomes delinquent April 1st.

Q: What tax credits are available and do I need to apply? A: The primary credit is the Homestead Credit for owner-occupied homes, which requires a one-time application with the County Assessor. Military exemptions are available for veterans and require separate application. Most credits are NOT automatic and must be applied for by July 1st to be effective for the following assessment year.

Q: How does the Homestead Credit work? A: The Homestead Credit provides both a direct tax credit and caps annual assessment increases. You must own and occupy the property as your primary residence and be an Iowa resident filing Iowa income taxes. The credit continues automatically once approved, but you must reapply if you move or change properties.

Q: How often are properties reassessed in Madison County? A: Iowa law requires properties to be assessed at fair market value annually as of January 1st. The County Assessor reviews all properties regularly, with physical inspections on a rotating cycle and statistical updates in between.

Q: What are the penalties for late property tax payments? A: Property taxes become delinquent one month after the due date (October 1st for first half, April 1st for second half). Delinquent taxes accrue interest and penalties, and can eventually lead to tax sale proceedings.

Q: Can I pay my property taxes online? A: Yes, Madison County offers online payment options. You can pay with an electronic check for only 25 cents, or use a debit/credit card for 2.25% of the total amount.

Q: Why do tax rates vary within Madison County? A: Different areas of the county are served by different school districts, rural fire districts, drainage districts, and other special taxing entities. Your total rate depends on which combination of these districts serve your specific property location.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Madison County Board of Review, typically between April 2nd and May 1st annually. Contact the County Assessor's office for specific deadlines and required forms for the current assessment year.

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 Taxes & Payment - Madison County Treasurer, Iowamadisoncountytreasurer.iowa.gov
02
County
Madison County Taxnacdashboard.nara.gov
03
County
Assessor | Madison County, Iowamadisoncounty.iowa.gov
04
Frequently Asked Questionsmadisoncountytreasurer.iowa.gov
05
County
Madison Countyhomebaseiowa.gov
06
File a Homestead Exemptioniowa.gov
07
Tax Doc
Homestead Tax Credit and Exemption | Department of Revenuerevenue.iowa.gov
08
Iowa Legislature - BillBooklegis.iowa.gov
09
LEGISLATIVE SERVICES AGENCYarchive.iga.in.gov
10
CHAPTER 437Alegis.iowa.gov
All sources verified as of 2025 Tax Year

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