Ohio's Homestead Exemption: Property Tax Relief for Seniors

Blank white image.

Michael L. Laribee, Esq.

Rising real property taxes are increasingly concerning older homeowners. For many retirees, higher tax bills are difficult to manage on fixed incomes.  Fortunately, Ohio offers a measure of relief through the Homestead Exemption program.

The Homestead Exemption is a property tax reduction available to qualifying homeowners.  It applies to primary residences and the surrounding land not exceeding one acre.  Primary residences include single-family homes, units in a multi-family dwelling, and manufactured or mobile homes taxed as real property.

Essentially, the program reduces the taxable value of your home for tax purposes. If you qualify, the exemption reduces your home’s taxable value by up to $25,000 of the property’s true value.  This results in a smaller annual tax bill. 

To qualify for the Homestead Exemption, an applicant must be 65 years of age or older, or permanently and totally disabled. It is also available to disabled military veterans with a permanent, total service-connected disability and the surviving spouse of a peace officer, firefighter, or emergency responder who died in the line of duty or from a related injury or illness. 

There is also an income cap for most homeowners to qualify. Currently, a homeowner’s total income must not exceed $30,000.  “Total income” refers to the modified adjusted gross income of the owner and the owner’s spouse for the preceding tax year.  

Homeowners must own and occupy the home as their principal residence as of January 1 of the year they file the application.  The application is filed with the county auditor of the county in which the property is located.  Typically, applicants need to provide proof of age or disability and income documentation with the application. 

The county auditor must approve or deny the application within 30 days.  If the application is approved, the county auditor will apply the reduction directly to the homeowner’s property tax records.  The Homestead Exemption generally continues automatically in future years, provided the homeowner remains eligible. If the application is denied, the county auditor will provide a notice explaining the reason.  Applicants then have the right to appeal the decision to the county board of revision within 60 days.

It is important to note that the Homestead Exemption does not transfer automatically if the homeowner moves. A new application must be filed for any new qualifying property.  Also, homeowners must notify the county auditor if they later become ineligible.

Meanwhile, lawmakers in Ohio continue to debate expanding the Homestead Exemption. Recent proposals include increasing the exemption amount and raising income limits to include more homeowners.  While no major expansion has been enacted, the discussions reflect a desire to address the financial pressure of property taxes on seniors.  As rules and income limits for the Homestead Exemption may change, seniors who believe they may qualify—or who are unsure—should consult their county auditor or trusted attorney for assistance.  Laribee Law, LLP is here to assist you. 

Michael Laribee is a partner in the Medina law firm of Laribee Law, LLP.  This article is intended to provide general information about the law. It is not intended to give legal advice.  Readers are urged to seek advice from an attorney regarding their specific issues and rights.