Property Tax & Income in Montgomery County, Iowa
Montgomery County has an effective property tax rate of 1.65%. On the median home value of $121,400, that's roughly $2,007 per year. Median household income is $63,666.
What you'll pay, at a glance
Property taxes are the largest local tax most homeowners pay. The effective rate measures the real tax bill as a share of home value — a more useful number than the nominal “mill rate,” because assessment practices vary county to county.
| Metric | Montgomery County | Iowa (state context) |
|---|---|---|
| Effective property tax rate1 | 1.65% | 1.32% |
| Median home value1 | $121,400 | — |
| State income tax3 | top rate 3.80% | top rate 3.80% |
| State sales tax3 | 6.94% combined | 6.94% combined |
How this is calculated
The effective property tax rate is the median real-estate tax bill divided by the median home value — both for owner-occupied homes, from the U.S. Census Bureau's American Community Survey (ACS 5-year estimates)1. Median income is also from the ACS1. Federal and state income-tax figures use IRS2 and Tax Foundation3 data.
About Montgomery County, IA
Buying a home in Montgomery County means weighing a lower price tag against a steeper tax rate. The median home value here sits at $121,400, and the resulting annual property tax bill comes to $2,007 — a figure driven by an effective rate of 1.653%, which climbs above Iowa's statewide median of 1.319% and ranks fourth among the state's 99 counties. Nationally, the picture shifts further, since the median effective rate across the country is just 0.794%. Households earning a median of $63,666 would devote roughly 3.2% of that income toward real-estate taxes, while per-capita income reaches $37,894. Red Oak, the largest community among Grant, Red Oak, and Stanton, anchors much of the county's residential base. Affordability here leans on inexpensive housing stock rather than low taxes, so a buyer's total outlay depends heavily on how much house they purchase.