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Updated 2025 Tax Year

Marion County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
1% base rate plus district additions (varies significantly by location within county)
Exemptions
5+ Available
Section 1

How Property Tax Works

Marion County, Iowa operates under the state's property tax system to fund essential local services including schools, county government operations, emergency services, and infrastructure maintenance. Property taxes in Marion County are levied based on assessed values determined by the county assessor, with the state base rate around 1% of assessed value. However, actual effective tax rates vary significantly depending on your specific location within the county due to different combinations of special taxing districts, school districts, and municipal boundaries.

The total property tax rate in any given area of Marion County is comprised of several components: the county general fund levy, school district taxes, city taxes (if applicable), and various special district assessments such as drainage districts, fire districts, or library districts. For 2025, Marion County is projected to see a 4.5% increase in property tax rates compared to the previous year. Property owners should consult with local government offices for precise rates applicable to their specific property location, as rates can vary considerably between rural areas, incorporated cities, and different school district boundaries within the county.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
County General FundVariesBasic county services, roads, sheriff, courthouse operations
School District LevyVaries by districtLocal school operations and facilities
City LevyVaries by municipalityMunicipal services (applies only within city limits)
Emergency ServicesVaries by districtFire protection, EMS, emergency management
Special DistrictsVariesDrainage, library, hospital, or other local service districts
Total Estimated Rate~1.0-1.5%Combined rate varies significantly by location

Note: These rates apply to the FY 2025-2026 levy year. Exact rates depend on your property's location within specific taxing districts. Contact Marion County Assessor's office for precise rates applicable to your address. The projected 4.5% increase for 2025 will be applied across various levy components.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Marion 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 Marion County are additional property tax assessments that occur when there are changes to a property during the tax year that affect its assessed value. The most common triggers include new construction, completion of building permits, ownership transfers that prompt reassessment, or discovery of previously unassessed improvements. Unlike the regular property tax bill that covers the entire tax year, supplemental taxes are prorated based on the number of months remaining in the fiscal year when the change occurred.

For example, if you complete a $50,000 home addition in Marion County in January and the improvement is assessed at that value, you would receive a supplemental tax bill for the additional assessment multiplied by your area's tax rate, prorated for the remaining months of the fiscal year. If your local tax rate is 1.2%, the annual additional tax would be $600 ($50,000 × 1.2%), but you would only pay for the portion of the year remaining after the improvement was completed and assessed.

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: 1.2% (varies by district)
  • Annual Tax: $3,542
  • Monthly Escrow: $295

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$4,850 (estimated, requires application)
  • Net Taxable Value: $595,150
  • Tax Rate: 1.2% (varies by district)
  • Annual Tax: $7,142
  • Monthly Escrow: $595

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: 1.2% (varies by district)
  • Annual Tax: $11,942
  • Monthly Escrow: $995

Note: Tax credits shown require annual application and eligibility verification. Actual rates vary by specific taxing districts within Marion County. Senior citizens may qualify for additional credits under House File 718.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Marion County require borrowers to maintain an escrow account for property taxes, especially when the loan-to-value ratio exceeds 80%. Your lender collects monthly deposits equal to 1/12th of your estimated annual property tax bill, plus a cushion typically equal to 2-6 months of payments. The lender pays your property taxes directly to Marion County on your behalf when they become due.

Marion County property taxes are due in two installments: the first half is due September 1st, and the second half is due March 1st of the following year. Your lender will typically pay each installment shortly before the due date to avoid late penalties. You should receive an annual escrow analysis from your lender showing the account activity and any adjustments needed to ensure adequate funds. If your property taxes increase significantly due to reassessment or rate changes, your monthly escrow payment may be adjusted upward during the annual review.

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 Marion County for FY 2025-2026? A: The first half is due September 1, 2025, and the second half is due March 1, 2026. Taxes become delinquent and subject to interest charges after June 2, 2026.

Q: What homestead tax credits are available and do I need to apply? A: Iowa offers homestead tax credits that must be applied for annually. You must be an Iowa resident, file Iowa income taxes, and own and occupy the property as your primary residence. Applications are due by July 1st each year. The homestead credit limits assessment increases rather than reducing market value.

Q: Is there a special tax credit for senior citizens? A: Yes, House File 718 established a homestead tax exemption for claimants 65 years or older, which became effective in 2023. This requires a separate application with income restrictions (household income must be less than $26,895 for 2025). Contact the county assessor for current income limits and application procedures.

Q: How often are properties reassessed in Marion County? A: Iowa law requires properties to be assessed annually, but actual market value reassessments may occur less frequently. The county assessor reviews sales data and property conditions to determine assessed values each year.

Q: What happens if I pay my property taxes late? A: Late payments incur interest charges. After June 2nd, delinquent taxes are subject to additional penalties and interest that compound over time.

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

Q: How do special districts affect my tax rate? A: Special districts for services like drainage, fire protection, or libraries add additional levies to your tax bill. These vary significantly by location within Marion County, which is why tax rates differ between properties.

Q: How can I appeal my property assessment? A: Assessment appeals must be filed with the Marion County Board of Review by specific deadlines, typically in early spring. Contact the county assessor's office for current appeal procedures and deadlines.

Q: Do I automatically get the homestead credit when I buy a home? A: No, the homestead credit requires a formal application. You apply once and it continues as long as you remain eligible, but you must apply initially and notify the assessor of any changes in eligibility.

Q: Can I have a homestead credit on multiple properties in Iowa? A: No, you may only claim a homestead credit on one property in Iowa - your primary residence where you live and file Iowa income taxes.

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