Ohio Property Tax

In Ohio Property taxed is assessed at 35% of it's market value

In 2006, the statewide average “gross” millage rate was 85.24 mills on residential and agricultural real property; and the statewide average “effective” millage rate on all real property was 55.18 mills. The difference between the gross and effective rate is due to the tax reduction factors, which generally prevent increases in voted taxes when the valuation of existing real property is increased.

Homestead Exemption:

Property tax reductions are granted to qualified low-income homeowners who are at least 65 years of age or are permanently and totally disabled or to surviving spouses at least 59 years of age if the deceased spouse had previously received the exemption. The reduction is equal to the gross millage rate multiplied by the reduction in taxable value shown in the following schedule:

Total Income of Reduce Taxable Owner and Spouse Value by the Lesser of:

$13,400 or less                                                               $5,500 or 75%

More than $13,400 but not more than $19,700              $3,400 or 60%

More than $19,700 but not more than $26,200              $1,100 or 25%

More than $26,200                                                          -0-

Since tax year 2000, the income brackets have been indexed for inflation. Beginning with tax year 2002, the dollar amount reductions in taxable value are also indexed annually for inflation.

Homestead Exemption Example

The example below illustrates the computation of homestead exemption property tax relief for tax year 2006. For
this example, assume that a senior citizen homeowner has the following characteristics:

Total income of $15,000, consisting of $5,000 in wages, $5,000 in social security and $5,000 in
dividends.

A home with a market value of $50,000 and a taxable value of $17,500 (taxable value = 35 percent of
market value).

A local property tax rate of 50 mills (gross rate before tax reduction factors).

Since the homeowner is in the $13,401- $19,700 income bracket, the reduction in taxable value equals the lesser of $3,400 or 60 percent of taxable value. Since 60 percent of $17,500 is $10,500, the reduction in taxable value used to calculate this exemption is $3,400. The tax savings equals the $3,400 reduction in taxable value multiplied by the 50-mill tax rate, or $170. Like all other real property taxpayers, the senior citizen homeowner in the example is entitled to a tax reduction factor which is applied against the property tax (assume a 15 percent reduction). Also, the homeowner is granted a 12.5 percent tax reduction (10 percent and 2.5 percent property tax rollbacks), which is reimbursed to the local governments from the state’s General Revenue Fund.

When these are considered, the computation of net property tax due is shown below:

Property tax before any reductions $17,500 taxable value x 50 mills = $875.00

Subtract tax reduction factor  ($875 x 15%) - 131.25

Net taxes levied after tax reduction factor = $743.75

Subtract 12.5% rollback (.125 x $743.75)  - 92.97

Net taxes before homestead = $650.78

Subtract homestead exemption ($ 3,400 x 50 mills)  - 170.00

Net property tax due  = $480.78