51566 Property Tax Rate

Property owners in ZIP code 51566 (Red Oak, Iowa) pay a median of $2,164/year in property taxes on homes valued at $116,200. This translates to an effective tax rate of 1.86%, which is 46% above the Iowa state average of 1.28%.

The monthly property tax burden for a median-valued home in 51566 is approximately $180, which factors into escrow payments on mortgages. This ZIP code is located within Montgomery County.

Compared to similar ZIP codes in Iowa, 51566 has lower property taxes. ZIP codes with similar effective rates include 52732 (1.87%) and 50633 (1.87%).

In Red Oak, property taxes represent approximately 3.7% of the median household income of $58,264, providing context for the relative tax burden on homeowners in this area.

Iowa applies no cap to property tax increases and reassesses at market value, meaning the Montgomery County Assessor will set your tax based on current fair market value at purchase. The Homestead Property Tax Credit (HPTC) reduces taxes for households earning under $32,400, with relief up to $1,375 annually based on income and property value. File your HPTC claim with the Montgomery County Assessor immediately after closing to ensure you receive the credit in the year you purchase.