What to Know About Homestead Exemptions in Ohio

July 17th, 2025

Property taxes can be a significant burden, especially for seniors, disabled residents, and surviving spouses. Ohio’s Homestead Exemption is a state program that provides targeted property tax relief to those who qualify—helping longtime homeowners stay in their homes and maintain financial stability. Ohio has recently expanded its exemption program, and more changes may be coming. If you’re unsure whether you qualify or how these changes could benefit you, here’s what you need to know.

How the Homestead Exemption Works

The Homestead Exemption lowers the taxable value of your home, which in turn lowers your property tax bill. It’s available to Ohio homeowners who meet age, disability, or income requirements—and in some cases, those qualifications are waived entirely.

As of the 2025 tax year, the standard exemption reduces the taxable value of a home by at least $28,000, saving eligible homeowners hundreds of dollars annually. This amount is adjusted for inflation each year.

To qualify for the standard exemption, you must:

  • Be at least 65 years old, or
  • Be permanently and totally disabled, or
  • Be the surviving spouse of someone who previously qualified,
  • Own and occupy your home as your primary residence, and
  • Have a modified adjusted gross income (MAGI) of $40,000 or less.

But the program doesn’t stop there. Ohio also offers enhanced exemptions for disabled veterans and public service spouses. These provide significantly more relief and are not subject to income caps.

Expanded Benefits for Veterans and Public Service Families

Ohio recognizes the unique sacrifices of military veterans and public servants by offering additional exemptions. These enhancements reflect the state’s commitment to supporting families who have given so much.

Here’s a quick breakdown:

  • Disabled Veterans: If you’ve received a 100% disability rating from the VA, you may qualify for an enhanced exemption of $52,300 off your home’s taxable value. Surviving spouses can also benefit from this reduction.
  • Spouses of First Responders: If your spouse was a peace officer, firefighter, or emergency responder who was killed in the line of duty, you may also receive the $52,300 exemption, regardless of your income.

Neither of these exemptions requires the homeowner to meet the income threshold. That means even if your income exceeds the maximum income requirements, you can still qualify if you meet one of these criteria. This change helps ensure that surviving families and disabled veterans aren't taxed out of their homes.

What’s New and What’s Next in Ohio

In 2024, the Ohio House passed House Bill 274, which introduces a new layer of property tax relief for long-term homeowners. If passed by the Senate, this law would create a third enhanced exemption—this time for seniors who have owned and lived in the same home for 20 consecutive years or more.

Under HB 274, eligible homeowners could receive an additional $50,000 exemption if they:

  • Meet the existing income guidelines,
  • Are 65 or older or permanently disabled, and
  • Have continuously owned and occupied the home for at least 20 years.

This proposal could deliver an estimated $190 million in tax relief to long-term homeowners across the state. It’s designed to address a growing problem: rising property taxes are forcing elderly residents to consider selling their homes or returning to the workforce. This bill would offer some much-needed relief—and stability—for Ohio’s aging population.

Meanwhile, the Ohio Senate has proposed further adjustments under House Bill 187, including:

  • Raising the base exemption to $30,000 (with annual inflation adjustments),
  • Increasing the income threshold to $75,000, and
  • Raising the enhanced exemption to $60,000.

These proposals are still under review but signal a strong bipartisan interest in expanding and modernizing the Homestead Exemption program.

Take the Next Step Toward Property Tax Relief

Navigating the Homestead Exemption can be tricky, especially with shifting income thresholds, changing legislation, and local filing requirements. But the potential savings are well worth the effort. If you think you may qualify for the Homestead Exemption—or one of Ohio’s enhanced exemptions—now is the time to act.

If you’re unsure whether you qualify or want to make sure you’re taking full advantage of Ohio’s Homestead Exemption laws, we’re here to help. Our team will walk you through the eligibility requirements, application process, and any new legislation that may impact your savings. Call Gudorf Tax Group, LLC today to schedule a consultation and find out how much you could save on your next property tax bill.