What is the Homestead Exemption?
This is a state-wide program, administered by County Auditors under rules established by the Ohio Legislature and the Ohio Department of Taxation. This allows senior citizens (65 or older) as well as permanently and totally disabled homeowners to reduce their real estate taxes by the amount equal to the taxes that would otherwise be charged on $25,000 of the market value of an eligible taxpayer’s homestead or residence. The homestead may include up to one acre of land. Under the changes made by the Ohio Legislature and beginning with applications for tax year 2014, new participants in the program will be subject to an income test to be eligible. The exemption will only be available to those homeowners with household incomes not exceeding $30,500 in Ohio Adjusted Gross Income for the preceding year.
What if I am currently a Homestead Exemption recipient?
EXISTING HOMESTEAD RECIPIENTS WILL CONTINUE TO RECEIVE THE HOMESTEAD EXEMPTION CREDIT WITHOUT BEING SUBJECT TO THE INCOME TEST!
The homestead exemption is “portable” under the new law, meaning that an individual currently receiving the homestead exemption will continue to receive the exemption and will continue to be exempt from the income test even if the individual sells an existing residence and purchases a new residence anywhere in Ohio. The homestead exemption is associated with the individual eligible for the homestead exemption and not a particular residence.
- If a participant relocates and purchases property anywhere in the state of Ohio, they will qualify for the exemption on the new home provided they show that they were receiving homestead exemption for tax year 2013 (see DTE form 105G). The individual will continue to be exempt from the income test.
What are the qualifications for the Homestead Exemption program under the new guidelines?
- Reach the age 65 by December 31st in the year of application, OR be permanently and totally disabled regardless of age on January 1st for the year of application.
- Own the home or manufactured home as the primary place of residence as of January 1st in year of application.
- Provide a photocopy of a picture ID for proof of age such as a driver’s license, State of Ohio ID card, or a current or expired passport.
- Beginning in 2014, your Ohio Adjusted Gross Income from the preceding year must not exceed $30,500.
- Beginning in 2015, your Ohio Adjusted Gross Income from the preceding year must not exceed $31,000.
- Beginning in 2016, your Ohio Adjusted Gross Income from the preceding year must not exceed $31,500.
- Beginning in 2017, your Ohio Adjusted Gross Income from the preceding year must not exceed $31,800.
What is required to be exempt from the Income Test?
IN ORDER TO BE EXEMPT FROM THE INCOME TEST, THE HOMEOWNER MUST EITHER RECEIVE OR BE ELIGIBLE TO RECEIVE THE HOMESTEAD EXEMPTION CREDIT FOR TAX YEAR 2013. Eligible homeowners must have qualified as an applicant for 2013, OR apply as a late applicant for 2013 between the first Monday in January 2014 and the first Monday of June 2014 to secure the homestead exemption for 2013.
How to Apply
Eligible homeowners may apply for the Homestead Exemption with their county auditor. The application form is available from all county auditors, online on the Ohio Department of Taxation website, or by contacting the Ohio Department of Taxation at 800-282-1780. The application form can also be found on our website on the forms page located here.
Please bring along with you:
- Drivers License or Picture ID.
- If you are applying under disability, bring a copy of your award letter.
- If your property is in a trust, we will need a copy of the page that states the name of the trust and whether it is a revocable or irrevocable trust.
A veteran that is 100% disabled can qualify for a $50,000** in valuation reduction without proof of income.
To receive the increased exemption under the bill, a homeowner must be a veteran of the United States armed forces, reserves, or National Guard who was honorably discharged with a service-connected total and permanent disability certified by the United States Department of Veterans Affairs or other federal agency. When applying for the exemption, the veteran must provide written confirmation of the disability from the federal government.