Republicans in the Iowa Senate announced a new plan for property tax relief on the first day of the 2026 legislative session.
The bill would exempt half of a homestead’s value from taxation while phasing out the “rollback” mechanism that reduces taxable value. It would further limit cities’ and counties’ revenue growth while also giving them new ways to raise more money through local option sales taxes and the gas tax.
Senate Majority Leader Mike Klimesh, R-Spillville, said the bill would also eliminate property taxes for Iowans 60 and older who have paid off their mortgage.
“If you’ve worked your whole life in the state of Iowa and you pay property taxes on that property, at some point in time, it should be yours,” Klimesh said on IPR’s River to River. “And this solution should get us to that point.”
House Republicans and Gov. Kim Reynolds are also expected to announce property tax proposals in the coming days.