What to Know About Homestead Exemptions in Ohio

The Ohio Homestead Exemption Program has been saving senior citizens and disabled residents money on their property taxes since the 1970s. Since this is a program that Ohioans must opt into, it's worth knowing what Ohio Homestead Exemptions can do for you, who they're for, and how to sign up.

What Are Ohio Homestead Exemptions?

Ohio Homestead Exemptions reduce Ohioans' state property tax bill by reducing the taxable amount of their property's worth. This reduction in taxable amount is called an "exemption", because it ignores a portion of your home's value for taxation purposes. The end result is that you pay less in property taxes each year.

What Is A Bankruptcy Homestead Exemption?

A related program exempts some of Ohioans' house worth from creditors in case of a bankruptcy, so that you don't lose your home entirely if the worst case scenario unfolds. Though both are referred to as Homestead Exemptions, people typically mean the property tax exemption when discussing Ohio Homestead Exemptions.

How Much Can Ohioans Exempt with the Ohio Homestead Exemption Program?

Homestead Exemptions allow you to exempt up to $28,000 of your home's property, as of the 2025 tax year. Let's walk through some scenarios to understand what that number means. If your home is valued at 100,000, you can exempt 72,000 ($100,000 minus 28,000), saving you over a quarter of your property taxes.

It's important to understand that the 28,000 is the exemption amount, not a percentage. So if your home is valued at 28,000, bringing the amount your home is considered worth for property tax purposes down to 22,000. This would save you over half of your property tax burden.

Is An Ohio Homestead Exemption a Credit or a Refund?

For Ohio Homestead Exemptions, the exemption carves out some of your property tax owed, so you receive a credit on your taxes owed, not a refund. This credit means you owe less in taxes, but it is not a refund. Homestead Exemptions can never reduce your property taxes below zero, and neither can any amount that would lower your property taxes below zero be carried over to next year's taxes.

In the examples above, note that if your home's value was 28,000 or under, this means that you would owe $0 in property taxes. However, you would never get a property tax refund, since this is a credit for taxes owed, and you would simply owe no taxes. Note that while your property taxes may be reduced, even to zero, assessments on your home are not property taxes, and these exemptions cannot cover them. You should pay them normally, even if your property tax burden is reduced or eliminated.

What Restrictions Are There On Ohio Homestead Exemptions?

Ohioans who want to get a homestead exemption must meet these requirements:

• Eligibility: You must be at least 65 years old, permanently and completely disabled, or a surviving spouse of a first responder killed in the line of duty.
• Income Limit: Your income must not exceed $40,000 in OAGI (Ohio Adjusted Gross Income). This limit is slated to rise slightly in 2026 to account for projected inflation.
• Household Usage Requirement: The home must be your primary residence, not a vacation home or rental property.

If you meet all of these requirements, you are eligible for a Household Exemption.

How Do I Apply?

In Ohio, you apply through your county's auditor office. Applications can. be filled out online, by mail, or in person.

When Do I Need to Re-Apply?

Once approved, you do not need to reapply each year unless your circumstances change. If you change homes, your income goes above the limit, or you are no longer considered permanently and completely disabled. If none of these things have changed, you will continue to get the benefits of the Ohio Homestead Exemption moving forward without any extra work on your behalf.

Should You Apply For An Ohio Homestead Exemption?

This program is designed to help those who need it most: seniors, disabled individuals, and spouses of first responders who've lost their lives in the line of duty. If you match those requirements, and your income is below the threshold, you should consider applying, as it can significantly reduce your property tax burden, making home ownership more affordable and workable for Ohioans who most need the help.

By taking advantage of this program, you can save considerably on your property taxes and enjoy life with one less financial worry. The tax professionals at Gudorf Tax Group can help you decide whether applying for a Homestead Exemption is the right choice for you. Contact us today for a free consultation!