Iowa’s 2026 Property Tax Reform Ranked No. 1 in Nation, Saving Households $1,463

DES MOINES, Iowa — Iowa’s 2026 property tax reform law ranks as the single largest reduction in property tax burden passed by any state legislature over the past decade, according to a report released Thursday by the Common Sense Institute.

The report found that Iowa’s reform, whether measured against statewide personal income or on a per-household basis, produced the biggest property tax cut in the nation among reforms enacted in the last 10 years. It also found that a separate 2023 Iowa reform ranks in the top five nationally by both measures.

The 2026 law is projected to reduce the statewide tax burden by an estimated $1,463 per household over its first six years, according to the report. The 2023 reform is projected to save households an estimated $952 over the same span.

Gov. Kim Reynolds said the findings validate the state’s approach to tax policy.

“I’m proud that Republicans kept our promise to Iowans with this year’s property tax reform and created another $4.2 billion in tax savings over the next six years,” Reynolds said in a statement. “This report confirms that we’re not only delivering for our state but also leading the nation in meaningful tax relief for working families.”

The Common Sense Institute also projected that the combined effect of the two reforms will improve Iowa’s national ranking for local tax burden, moving the state from 20th most burdened in the nation to 29th by 2033, assuming other states do not make comparable changes to their own property tax policies.

The institute said the reforms are expected to significantly increase Iowa’s tax competitiveness relative to other states.