{"id":5167,"date":"2023-04-08T18:02:00","date_gmt":"2023-04-08T22:02:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=5167"},"modified":"2023-11-06T13:13:14","modified_gmt":"2023-11-06T17:13:14","slug":"your-guide-to-ohio-property-taxes","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/your-guide-to-ohio-property-taxes\/","title":{"rendered":"Your Guide to Ohio Property Taxes"},"content":{"rendered":"\n

Did you know that taxes imposed on real property are the oldest type of tax in Ohio? In 1825, value-based real property taxes were introduced in the state. Ohio\u2019s code defines the term<\/a> \u201creal property\u201d as land, which includes anything growing on it, in addition to buildings, structures, or other fixtures. <\/p>\n\n\n\n

All owners of real property are subject to property taxes unless they qualify for an exemption, such as nonprofit or government entities. The funds received through property taxes support state agencies and services, law enforcement, parks, schools, libraries, and more. <\/p>\n\n\n\n

Today, the Ohio Department of Taxation maintains a limited, supervisory role, primarily concerning the way that property is appraised. Although the state dictates the rules and regulations of this uniform property tax system, all collection activity and day-to-day administrative duties remain the responsibility<\/a>\u00a0of the individual counties and municipalities.\u00a0<\/p>\n\n\n\n

For example, in Hamilton County, which is seated in Cincinnati, the county treasurer handles property tax collection. This treasurer maintains responsibility for taxes associated with real estate, personal property, and manufactured homes. The basis for property tax calculations<\/a> is the value of the property and any tax levies approved by voters. <\/p>\n\n\n\n

How are property values determined for tax purposes in Ohio? The auditor of each county performs \u201cfull\u201d appraisals of all properties every six years, with some limited updates occurring at the three-year mark. <\/p>\n\n\n\n

FYI: Although all Ohio counties perform formal property appraisals every six years, their schedules or intervals vary. For example, Franklin County (Columbus) reappraised<\/a> in 2023, while it occurs in Cuyahoga County (Cleveland) in 2024. <\/p>\n\n\n\n

Data indicates that Ohioans pay higher than average property taxes compared to other U.S. states.<\/p><\/blockquote>\n\n\n\n

The Impact of the Recent Housing Market on Property Taxes <\/h3>\n\n\n\n

Home prices have continued rising in recent years across many of Ohio\u2019s housing markets. Several factors contributed to the continued surge in home values. For example, the abrupt rise in demand for homes during the COVID-19 pandemic, ultra-low interest rates in 2020-2021, and a lack of new home construction activity stemming from supply-chain problems. <\/p>\n\n\n\n

While rising home prices <\/a>are generally seen in a positive light and indicate a healthy market, many Ohioans are struggling with the increases in property taxes. A report from Cincinnati\u2019s ABC affiliate WCPO 9 explained how one homeowner saw his yearly property taxes increase by $900. In Miami County, the average tax increases<\/a> for 2022 were 11%. <\/p>\n\n\n\n

Comparing Ohio\u2019s Property Tax Rates Against Other States<\/h3>\n\n\n\n

Data indicates that Ohioans pay higher than average property taxes compared to other U.S. states. For 2022, the average property tax rate in Ohio was approximately<\/a> 1.56%. For comparison, the lowest rates existed in Hawaii (.28%) and Alabama (.41%), and the highest were in New Jersey (2.49%) and Illinois (2.29).  <\/p>\n\n\n\n

Ohio homeowners paid an average of $3,725 compared to the national average of $2,475 in 2022. Cuyahoga County had the highest rate at 2.51%, and Lawrence County has the lowest rate at .86%.<\/p>\n\n\n\n

Kiplinger recently compared the overall tax burden across the U.S. among all types of state and local taxes. The report described Ohio\u2019s state income taxes as \u201creasonably light.\u201d However, they found that property taxes and municipal and school district taxes were higher than most.<\/p>\n\n\n\n

Homeowners may challenge the appraised value of their property.<\/p><\/blockquote>\n\n\n\n

The Property Appraisal Process in Ohio <\/h3>\n\n\n\n

Counties have a tax \u201cequalization\u201d division or unit responsible for generating reports of sales involving similar properties. These comparable properties or \u201ccomps\u201d provide a basis for determining the value. Ohio\u2019s Constitution has a \u201c10-mil limitation\u201d that restricts the levying of property taxes to levels that exceed 1% without voter approval. <\/p>\n\n\n\n

Ohio\u2019s Legislative Service Commission offers county-level auditors or commissioners much more flexibility<\/a> in their three-year interim (triennial) updates regarding formulas or methods for appraising properties.  <\/p>\n\n\n\n

After the county-level appraisals finish, the Ohio Department of Taxation receives the information. Here, the state reviews the appraisal values for accuracy and consistency and may reject the appraisals based on their findings. The state review process serves as a type of checks and balances process. <\/p>\n\n\n\n

Despite remaining subject to property taxes in Ohio, manufactured homes typically pay only based on the home\u2019s value. The land that the manufactured home resides on is often excluded. <\/p>\n\n\n\n

Ohio\u2019s Property Tax Credits <\/h3>\n\n\n\n

Real property exemptions apply to governmental structures and others, including churches and charitable organizations. The state also offers a basic property tax credit called the Owner Occupancy Credit. <\/p>\n\n\n\n

Owners that reside on the property, which serves as their primary residence, are\u00a0eligible<\/a>\u00a0for a 2.5% tax credit. Homeowners (and spouses) may only receive this credit on one home.\u00a0<\/p>\n\n\n\n

A Damaged property deduction is also available for those with a property that endures severe damage. The amount of the credit varies according to the severity of the structural damage. <\/p>\n\n\n\n

Ohio\u2019s Homestead Exemption <\/h3>\n\n\n\n

Voters supported a constitutional Homestead Exemption amendment in 1970 that provided property tax relief for seniors with lower incomes. A change to the program in 2007 allowed all homeowners aged 65 or older to qualify regardless of their income level. The state reversed the 2007 measure in 2014 and now has income-based limitations once again. <\/p>\n\n\n\n

The overall, current qualification guidelines are as follows: <\/p>\n\n\n\n