Iowa House Republicans have released a new property tax proposal for consideration during the 2026 legislative session.
House Study Bill 596 was introduced by Ways and Means Chairman Carter Nordman, a Republican from Dallas Center, who will lead the bill through the Iowa House. Nordman says the proposal is designed to provide more certainty for homeowners while still allowing local governments to grow.
Under the plan, revenue growth for cities and counties would be capped at 2 percent plus new construction, with exceptions for schools and debt levies. The bill would also create a new $25,000 property tax exemption on every residential property, meaning the first $25,000 of a home’s assessed value would not be taxed.
Additional provisions would require property-tax-backed bonds to receive 60 percent voter approval, revamp property tax mailers to improve transparency, and require Councils of Government to help local governments identify efficiencies and reduce costs.
House Speaker Pat Grassley says the proposal prioritizes taxpayers while remaining simple for homeowners to understand. A subcommittee meeting on the bill has not yet been scheduled.
