Property tax foreclosure in Iowa

The property tax process in Iowa, step by step

1. Taxes become delinquent

   October 1 (first half) and April 1 (second half)

   The first half of your tax is delinquent if not paid before October 1, and the second half if not paid before April 1. Delinquent tax draws interest of 1.5% per month until it is paid.

   Iowa Code §§ 445.37, 445.39

2. Notice of the tax sale

   Mailed by May 1; published 1 to 3 weeks before the sale

   The county treasurer mails a notice to the person the property is taxed to by May 1, listing the total due and warning that a deed may issue if the parcel is not redeemed. The sale is also published in a county newspaper. Lienholders get notice only if they asked for it and paid a fee.

   Iowa Code § 446.9

3. The annual tax sale

   Third Monday in June

   The treasurer offers every parcel with delinquent taxes. A bidder pays the total amount due, and the winner is whoever offers to take the smallest percentage of ownership, at least 1%, which becomes an undivided interest only if a treasurer's deed is later issued. The winner gets a certificate of purchase; you still own the home.

   Iowa Code §§ 446.7, 446.16

4. Redeem through the county treasurer

   Any time before the right of redemption expires

   Pay the treasurer the amount the parcel sold for, the certificate fee, and interest of 2% per month, with any part of a month counted as a full month, plus later taxes the holder paid with the same interest. Pay by the last business day of the month to avoid another month of interest.

   Iowa Code § 447.1

5. 90-day notice and treasurer's deed

   Notice after 1 year and 9 months from the sale; deed 90 days after service is complete

   After 1 year and 9 months (9 months for parcels sold at a public bidder sale), the holder can serve you and lienholders by regular and certified mail with notice that your right to redeem ends 90 days after service is complete. If you do not redeem by then, the treasurer issues a deed when the holder returns the certificate. After the deed, you can redeem only by a court action, and only if you were not properly served or another narrow rule applies.

   Iowa Code §§ 447.9, 447.12, 447.8, 448.1

6. No surplus is paid back under current Iowa law

   After the treasurer's deed

   In Tyler v. Hennepin County (2023), the Supreme Court held that keeping a home's value beyond the tax debt can be an unconstitutional taking. Iowa's tax sale chapters, as published for 2026, have no provision for returning that value to a former owner, and the deed passes the percentage the bidder won. If you are close to losing a home with equity, redeem, or talk to a lawyer right away.

   Iowa Code chs. 446 to 448

7. Ask the county to suspend or abate your taxes

   Petition approval filed by March 1 of the tax year

   If you are unable to pay, you can file a sworn petition with the county board of supervisors, which may suspend or cancel the taxes, interest and costs. If you receive federal SSI or state supplementary assistance, or live in a care facility paid by the state, your taxes are suspended while you qualify.

   Iowa Code §§ 427.8, 427.9

Common questions in Iowa