Property Tax 101

Did you know that there are many factors that impact how much property tax you pay? It's not as simple as a percentage of the assessed value of your property. Here are some resources to help you understand the main elements that determine how much property tax you pay. 

Where do property tax dollars go?

Several different entities are funded in part by property tax dollars. In the State of Iowa, the majority of property tax dollars go to fund operations or services for City governments, County governments and local public school districts. In Waukee, about 36 cents of each property tax dollar paid goes to fund operations of the City of Waukee, including police, fire, new roads, the library, park maintenance and other things you depend on. The Waukee Community School District gets 50 cents while Dallas County gets 10 cents. The remainder goes to the State of Iowa, community colleges and other entities. 

Note that it's not equivalent to compare property tax rates from state to state without looking at a more comprehensive picture of how that state funds local governments and schools. The cost to run a city of similar size to Waukee is about the same from state to state. In Iowa, city governments are primarily funded by a share of property taxes, fees earned from license, permits and other services as well as franchise fees. When living in Iowa, you may pay higher property tax compared to Missouri, but Missouri residents pay other taxes that we don’t pay here in Iowa. That’s because neighboring states use different revenue sources more heavily than property taxes to fund their city governments, such as local restaurant tax, lottery funds, gasoline tax, state aid or putting sales tax toward city operations.

Here's the breakout for Waukee property owners.

image of a dollar bill with lines showing splits for City, County, School and other taxing entities

Watch our information session

Mayor Clarke breaks down the confusing topic of how property taxes are calculated. She also shares how the City puts its portion of property tax dollars to work for you and our community. In this recorded session from March 2024, we cover:

  • Who collects property taxes
  • How property taxes are calculated
  • Some key things to know about the new tax statements you received by mail in 2024
  • What City property taxes pay for
  • How the City of Waukee compares to our neighbors
  • Effect of increases in property valuation on your tax calculation


City of Waukee Tax Levy Rate

The property tax dollars that the City receives fund operations of your local government, including many things you depend on to run your daily life. Maintenance of the roads you drive on, emergency response from police and fire, the library and maintenance of parks are all paid for in large part by property tax revenue. 

Over the last decade, the Waukee City Council has lowered or maintained the City's levy rate each year. This upcoming fiscal year 2027, the City expects to maintain the current levy rate, subject to public hearing and approval by the City Council. 

How are property taxes calculated?

The City levy rate is only part of the property tax equation. Other factors include the levy rates from other taxing entities, such as Dallas County and the Waukee Community School District, the assessed value of your property and the assessment limitation, sometimes called the Rollback Rate, that is set by the State of Iowa each year. 

The levy rate is the dollars per $1,000 of taxable valuation. Taxable valuation is not the same as the assessed value of your home listed on the Dallas County Assessor's website or the statements you receive in the mail. That assessed value is updated every other year based on the assessment process set by the State of Iowa. Note that assessed value will update out of that 2-year cycle if the property is sold or you make improvements to your property, such as adding a garage or finishing a basement.

Each year, the State of Iowa applies a Rollback Rate to that assessed value as a way to manage increases on property taxes from year to year. That rate changes each year. In fiscal year 2026, the residential rollback was 47.4316%. For a $400,000 home, that reduces taxable value to $189,726. This rollback is why property owners may sometimes pay about the same or less in property taxes even though assessed value of their home went up significantly.

When do I pay property taxes?

Property taxes are typically paid twice each year. There is an 18-month lag between the time your property is valued and collecting taxes on that value. Taxes will be collected in September 2025 and March 2026 based on the value of your property in January 2024.

What other things should I know about how property taxes work in Iowa?

All real property is re-assessed every odd-numbered year. Credits are subtracted from the final tax bill. An example of a credit that reduces the final tax bill is the Homestead Tax Credit. 

Get an overview of the Property Tax system in Iowa in this video from the Iowa Department of Management. View the Property Tax Primer or by visiting the Iowa Department of Revenue website here.