Property taxes in Ohio ranked 12th in the country in 2008 in terms of taxes as a percentage of home value at 1.29% according to the Tax Foundation. But starting with property tax bills paid in 2008, Ohio residents who are age 65 or older or disabled can take advantage of an expanded homestead exemption. Qualifying homeowners, regardless of their income, can now claim an exemption on up to $25,000 of the market value of their homestead, which includes their principal residence and up to one acre of land.
Property taxes in Ohio
Property taxes in Ohio are levied on 35 percent of the market value of the property, except for certain land devoted exclusively to agricultural use. Property taxes are levied locally by counties, municipalities, townships, school districts and special service districts. The tax rates therefore vary by location.
According to the Ohio Department of Taxation, the average statewide net tax rate on residential and agricultural real property in 2008 was 57.14 mills. You can find a table with the average real property millage rates by city and county for 2008 on the Ohio Department of Taxation website.
The homestead exemption is available to Ohio homeowners who are at least 65 years of age, permanently and totally disabled, and homeowners who are at least 59 years of age and are the surviving spouse of a deceased homeowner who qualified for the exemption.
Prior to the 2007 tax year (tax bills paid in 2008) the homestead exemption was limited to homeowners who earned $26,200 or less, and the amount of the benefit depended on the level of income. But House Bill 119 enacted in 2007 removed the income requirement. Each qualifying homeowner is entitled to an exemption of up to $25,000 of the market value of their homestead, which means $8,750 of the taxable value ($25,000 times 35 percent) is exempt from property taxes.
If you qualify, you can apply for the homestead exemption by completing the application form you can download from the Ohio Department of Taxation website. The application form should be filed with your county auditor after the first Monday in January and on or before the first Monday in June. You can find a link to your county auditor on the Directory of County Auditors in the County Auditors’ Association of Ohio website.
As indicated by the Ohio State University Extension, your county treasurer will notify you when the county auditor has approved your application. Once your application is approved you do not need to apply for the homestead exemption each year. If you received a larger credit under the old homestead exemption system you will receive either the old credit or the new credit, whichever is larger.
Sources:
Directory of County Auditors – County Auditors’ Association of Ohio
Homestead Exemption Application for Senior Citizens, Disabled Persons and Surviving Spouses – Ohio Department of Taxation
Homestead Exemption: Are You Eligible? – Ohio State University Extension
Property Tax Millage Rates – Ohio Department of Taxation
Property Tax Relief for Senior Citizens and the Disabled – Ohio Department of Taxation
Property Tax – Real Property – Ohio Department of Taxation
Property Taxes on Owner-Occupied Housing by State, 2004 – 2008 – The Tax Foundation
Reference:
- Current Agricultural Use Valuation (CAUV) – General Information: tax.ohio.gov/divisions/real_property/cauv.stm
