Ohio Homestead Exemption

Quick Facts

What it does: Lowers the taxable value of your owner-occupied home for property tax purposes. Standard homestead reduces taxable value by up to $25,000; the enhanced veteran exemption reduces up to $50,000 of market value.
Who qualifies: Ohio homeowners age 65+, individuals with permanent disabilities, or surviving spouses age 59+ whose spouse qualified at death. Disabled veterans with a 100% service-connected rating or total disability compensation rating qualify for the enhanced benefit without income limits.
Income test: For the standard exemption, total household income (Ohio adjusted gross income plus certain add-backs) must be below the annual threshold ($38,600 for 2024, adjusted annually for inflation).
How to apply: Submit Form DTE 105A to your county auditor with proof of age or disability and income documentation by December 31 of the year for which you seek the reduction. Veterans file Form DTE 105I.
Benefit delivery: The exemption appears as a reduction on your tax bill, lowering semiannual payments. You do not receive a direct check but pay less property tax.

Program Overview

The Ohio Homestead Exemption has existed since the 1970s to shield seniors and people with disabilities from property tax hikes. In 2014, the legislature reintroduced an income test for new applicants but preserved benefits for those already enrolled. In 2017, lawmakers created an enhanced benefit for disabled veterans, eliminating the income test for that group and doubling the reduction amount. The exemption is administered locally by each county auditor, but state law governs eligibility, benefit amounts, and application procedures.

Because property taxes fund schools and local services, Ohio carefully balances relief with revenue needs. The homestead exemption reduces the taxable value of your home, not the tax rate. For example, a $150,000 home receiving the standard exemption will be taxed as if it were worth $125,000. This often yields annual savings of $400–$800 depending on local millage. Veterans receiving the $50,000 reduction may save $800–$1,500 annually in higher-tax districts.

Eligibility Requirements

Age and Disability Criteria

Age 65 or older: You qualify beginning the year you turn 65. Age is based on your age as of December 31 of the year preceding the tax year. For example, if you turn 65 in July 2025, you can claim the exemption for tax year 2025 payable in 2026.
Permanent disability: You must be permanently and totally disabled on or before January 1 of the tax year. Provide a physician’s certificate (Form DTE 105E) or proof of Social Security Disability or SSI benefits.
Surviving spouse: If your spouse qualified for the homestead exemption and died, you can continue receiving it if you were at least 59 at the time of death, continue to occupy the home, and do not remarry.
Disabled veterans: Qualify with a 100% service-connected disability rating or a Total Disability Individual Unemployability (TDIU) rating from the VA. Surviving spouses of qualifying veterans maintain eligibility until remarriage.

Residency and Ownership

The home must be your principal place of residence as of January 1. Evidence includes voter registration, driver’s license, and mailing address for bills.
You must own the home (fee simple, life estate, or certain trusts where you retain occupancy rights). Mobile homes subject to manufactured home tax qualify.
Only one home per household can receive the exemption. If you own multiple homes, designate the primary residence.

Income Limits

Standard homestead applicants must have total income below the statutory threshold. Total income includes Ohio adjusted gross income plus business depreciation add-back and net loss adjustments. Exclude Social Security benefits.
Income thresholds adjust annually based on inflation. Check the Ohio Department of Taxation website for current limits.
Veterans receiving the enhanced exemption do not face income limits.

Application Process

Gather documents: Collect proof of age (birth certificate, driver’s license), disability (SSA award letter or physician’s certificate), or veteran status (VA award letter). Assemble prior-year income documentation (Ohio IT 1040, W-2s, 1099s).
Complete Form DTE 105A (standard) or DTE 105I (veteran): Forms are available on county auditor websites and the Ohio Department of Taxation site. Provide property parcel number, social security numbers, and contact information.
Submit to county auditor: File in person, by mail, or electronically if your county offers online submission. Keep copies and request a receipt or timestamp.
Deadline: Submit by December 31 to receive the exemption on the tax bill for the year filed. Some counties accept applications year-round; late applications apply to the following tax year.
Approval notification: The auditor will send a letter indicating approval or denial. If denied, review reasons (e.g., income too high, incomplete documentation) and appeal or correct.
Renewal: Once approved, the exemption automatically renews. You must notify the auditor if you move, sell the home, die, or no longer meet eligibility. Auditors may conduct random audits requiring updated income information.

Documentation Tips

Income verification: Even though Social Security is excluded, provide SSA-1099 to confirm. If you have minimal income, submit a notarized statement.
Veteran documentation: Request a current VA benefits letter showing 100% service-connected rating or TDIU. Provide DD-214 if the auditor requests service verification.
Trust ownership: If your home is in a revocable living trust, submit the trust agreement showing you retain occupancy rights. For irrevocable trusts, consult an attorney to ensure eligibility.
Power of attorney: If a caregiver is applying on your behalf, include a copy of the power of attorney document.

Calculating Savings

Determine your home’s market value (from tax bill) and subtract the exemption amount ($25,000 or $50,000). Multiply the reduced taxable value by your local effective tax rate to estimate savings.
For example, a $200,000 home in Franklin County with an effective rate of 1.5% results in a $375 annual savings with the standard exemption ($25,000 × 1.5%).
The exemption reduces taxable value, not assessed value for special assessments (e.g., sewer or lighting districts). Review your bill to see how savings apply.

Strategies to Maximize Benefits

Apply promptly when turning 65: File during the year you meet the age requirement to avoid losing a year of savings.
Appeal property valuation separately: The homestead exemption can be combined with valuation appeals. If you believe your property is overvalued, file a complaint with the Board of Revision to reduce your tax burden further.
Coordinate with mortgage escrow: Notify your mortgage servicer after approval so escrow calculations adjust. Provide the auditor approval letter to prevent overpayment.
Plan for relocation: If you move to another Ohio county, reapply with the new county auditor. If you move out of state, notify your former county to avoid recapture.
Veterans: stack other benefits: Combine the homestead exemption with VA Specially Adapted Housing grants, property tax abatements offered by municipalities, and non-profit assistance for home modifications.

Frequently Encountered Issues

Income over the threshold: If your income slightly exceeds the limit, explore deductions or retirement contributions that reduce Ohio adjusted gross income. Some retirees delay IRA distributions to remain eligible.
Ownership changes: If adding children to the deed as joint owners, ensure you retain occupancy rights. Loss of occupancy could disqualify you.
Nursing home stays: Temporary absence for medical reasons does not end eligibility as long as you intend to return and keep the home as your principal residence.
Multiple parcels: If your home spans multiple parcels, apply for the exemption on each parcel where the dwelling sits. Consult the auditor to ensure coverage.
Manufactured homes: File by the first Monday in June for manufactured homes taxed under the manufactured home tax. Standard December 31 deadline applies for real property taxation.

Appeals and Compliance

If denied, you may appeal to the county Board of Revision within 60 days. Provide additional evidence and attend hearings to explain your case.
Auditors may audit recipients, requesting updated income statements or proof of residency. Respond promptly to avoid removal.
Intentional misrepresentation can result in repayment of taxes saved plus penalty and interest. Ensure information is accurate.

Interaction with Other Programs

Property tax payment plans: If you still struggle with taxes, explore county payment plans or senior deferral programs where available.
Local tax credits: Some municipalities offer additional credits for seniors or low-income homeowners. Ask your local tax office for information.
Utility assistance: Programs like HEAP, Percentage of Income Payment Plan (PIPP) Plus, and local senior services can complement tax relief by lowering energy bills.

Example Scenarios

Retired couple in Cuyahoga County: The Martins, both 68, live on Social Security and pension income totaling $32,000. They apply for the homestead exemption, reducing their taxable value by $25,000 and saving $520 annually. They also appeal their valuation and secure an additional $15,000 reduction, further lowering taxes.
Veteran in Montgomery County: Sergeant Davis, a 100% disabled veteran, purchases a $180,000 home. The enhanced exemption reduces taxable value by $50,000, saving $900 annually. He coordinates with his lender to adjust escrow payments and uses savings to fund accessibility modifications.
Surviving spouse in Lucas County: Mrs. Chen, age 61, lost her husband who previously qualified. She files Form DTE 105A as a surviving spouse, continuing the exemption and preventing a sudden tax spike.

Frequently Asked Questions

Does the exemption transfer automatically when I move? No. File a new application with your new county. Benefits do not transfer between states.
Can renters benefit? No, the exemption is only for homeowners. Renters should explore the Ohio renter tax credit or utility assistance programs.
What if I co-own the home with children? As long as you retain occupancy and meet eligibility, the exemption applies to the property. All owners should sign the application.
Do I need to reapply each year? No, but inform the auditor of changes. Some counties send annual postcards to confirm occupancy.
How are income thresholds updated? The Department of Taxation adjusts thresholds annually using the GDP price deflator. Check updates each January.