Ohio Homestead Exemption
Ohio homestead laws allow residents to exempt up to $25,000 worth of property from taxation. To qualify, you must be over 65, disabled, or a surviving spouse. The exemption protects homeowners from losing their homes over unpaid debt.
Who is Eligible?
To qualify for the Homestead in Ohio:
- Own and occupy the home as the primary residence as of January 1 of the year for which they apply.
- Be 65 years of age or older, or turn 65 by December 31 of the year for which they apply; or
- Be permanently and totally disabled.
Homestead Law and History
The Homestead Act, enacted during the Civil War in 1862, provided that any adult citizen, or intended citizen, who had never borne arms against the U.S. government could claim 160 acres of surveyed government land. Claimants were required to “improve” the plot by building a dwelling and cultivating the land. In all, more than 160 million acres of public land were given away to 1.6 million homesteaders; most of the homesteads were west of the Mississippi River.
Tax Savings and Considerations
The exact amount of savings varies from location to location. Across Ohio, qualified homeowners saved an average of about $495 per taxpayer during the 2015 tax year. The tax exemption is limited to the homestead, which Ohio law defines as an owner’s dwelling and up to one acre of land.
Property Taxes in Ohio
The Homestead Exemption is available to seniors age 65 or older and the disabled. It was approved in 1970 and permits reduced property taxes. An Ohio resident must own and live in a home as their main place of residence as of January 1st when applying. The state returns to income testing for eligibility. You can get property tax savings by claiming exemptions or appealing appraisals. Assessed values, which taxes are based on, equal 35% of a home’s value. At least half of a real property tax bill is due by December in Ohio. You have one year to pay delinquent property taxes before foreclosure.