Des Moines Tax Abatement: Eligibility, Deadline, and How to Apply

Des Moines tax abatement temporarily exempts the added value that new construction or improvements bring to a property, so you keep paying taxes on the pre-project value while the increase is partly or fully exempt for five to ten years. The exact schedule depends on whether you’re renovating or building new, how many units are involved, where the property sits, and whether the project meets the city’s insulation, EV charging, or sustainability standards. Applications run through the Development Services department and must be filed by February 1 of the assessment year the value is added.

What the Exemption Actually Reduces

Abatement applies only to the value your project adds, not the whole property. Renovate a home assessed at $200,000 up to $260,000 and only the $60,000 increase is eligible for exemption. You continue paying property tax on the original $200,000 throughout the abatement period.¹

Savings don’t show up right away. Iowa property taxes run on an eighteen-month cycle: the assessor sets values as of January 1, and the first tax payment on that assessment isn’t due until the fall of the following year, with the second half due the spring after that. A project assessed in January 2026 first affects payments due in fall 2027 and spring 2028.²

Baseline Eligibility

Every abatement project in Des Moines has to clear three thresholds. The property must comply with all city requirements. The improvements must increase the assessed value by at least 5%. And any work requiring a building permit must have that permit in hand before construction starts.³

The 5% figure is real money on most homes. A $250,000 property needs at least $12,500 in added value for the project to qualify. Cosmetic touch-ups rarely clear that bar; a kitchen remodel, addition, or full basement finish usually will.

Location changes the length of the schedule, not the eligibility. Des Moines designates certain neighborhoods as Targeted Residential Areas, and projects inside those zones get longer abatements than the same project outside them. The city publishes maps of the targeted areas on its Development Services pages.

Single-Family and Duplex Projects

If you’re renovating an existing home or adding a new accessory structure, the schedule is the best the city offers: a full ten-year, 100% exemption on the added value, available anywhere in Des Moines.³ No taxes on the increase for a decade. Most homeowners doing a serious remodel land here.

New home construction is treated differently. The exemption declines over time, and the length depends on location and whether the build meets enhanced insulation and EV charging standards:

Outside the targeted area, without insulation and EV features: five-year declining schedule
Outside the targeted area, with insulation and EV features: six-year declining schedule
Inside the targeted area (excluding Riverpoint West), without those features: nine-year declining schedule
Inside the targeted area (excluding Riverpoint West), with those features: ten-year declining schedule

The sustainability standards are specific. Walls separating conditioned space from unconditioned space must have a minimum R-value of 20, and the garage must include a Level 2 EV charging station or the wiring and raceway ready for one.³ Meeting both can effectively double the abatement duration for a basic build outside the targeted area.

Missing Middle Projects (Two to Twelve Units)

Des Moines runs a separate track for housing between single-family homes and large apartment complexes. It covers duplexes, townhouse structures up to twelve units, and small apartment or condo buildings with two to twelve units.⁴

Renovations of existing missing middle structures and new accessory housing structures qualify for the same ten-year, 100% exemption available citywide. New two-to-twelve-unit buildings use declining schedules:

Outside Riverpoint West and Bridge District Plats 2 and 3, without insulation and EV features: eight-year declining schedule
Outside Riverpoint West and Bridge District Plats 2 and 3, with those features: nine-year declining schedule
Within Bridge District Plats 2 and 3: developers choose between the shorter city-wide schedule or the longer schedule, depending on whether sustainability features are included

Projects inside the Riverpoint West area follow a separate abatement page maintained by the city. The 5% assessed value increase and permit rules apply the same way.

Commercial, Industrial, and 13+ Unit Residential

Larger projects fall under a different set of rules. Qualifying improvements include new buildings, additions that exceed 50% of the existing floor area, and renovations with an estimated cost exceeding 50% of the building’s assessed value.⁵

The distinguishing requirement is sustainability. The project must include at least four features from the city’s approved list. Options include permeable pavement on at least 30% of paved area, stormwater management practices, renewable building materials on 90% of exterior elevations, proximity to a DART transit stop, solar or geothermal energy systems, building on a previously developed site, and renovation of an existing building. Some are inexpensive to meet; others, like solar generation covering at least 20% of the development’s electricity consumption or geothermal heat pumps as the primary heating and cooling source, involve real capital. Property owners can also propose alternative sustainability measures and request written approval from the Development Services Director.⁵

The February 1 Deadline and How to Apply

Applications go through Des Moines Development Services using the city’s online Customer Self Service portal. Staff review projects for compliance during the development review process and inspect the completed project before approving the final application.⁵

You’ll need the legal description of the property (from your deed or the Polk County Assessor), the building permit numbers, the project completion date, and the total cost of improvements. Complete final inspections before you document the project as finished on your application.

The hard date is February 1 of the assessment year in which the value is added. A project completed in 2025 must have its application filed by February 1, 2026. Miss the deadline and you lose a full year of benefits, because the exemption cannot be applied retroactively.⁶ This is where people most often lose money. If your project wraps in December, you have about a month. Plan for it.

After Approval

Once the city approves the application, the Polk County Assessor adjusts your property records to reflect the exemption. The assessor grants the exemption for the full duration of your assigned schedule and conducts periodic physical reviews to confirm ongoing eligibility.⁷

Selling doesn’t end the abatement. Under Iowa Code Section 404.3C, a recorded assessment agreement is binding on subsequent purchasers, so a new owner continues to receive the remaining years of the exemption.⁷ For sellers, that’s a real listing point. And if Des Moines ever repeals an urban revitalization area designation, existing exemptions still run until they expire on their original schedule.

1
Iowa Legislature. Iowa Code 404.3 – Basis of Tax Exemption
2
Iowa Department of Revenue. Iowa Property Tax Overview
3
City of Des Moines. Low-Density Residential Tax Abatement
4
City of Des Moines. Missing Middle Residential Tax Abatement
5
City of Des Moines. Commercial, Industrial, and High-Density Residential Tax Abatement Acknowledgment Form
6
Iowa Department of Revenue. Tax Credits and Exemptions
7
Iowa Legislature. Iowa Code Chapter 404 – Urban Revitalization Tax Exemptions