Two Different Breaks, Often Confused
When Ohioans say "homestead" they may mean either of two things, and the bill line names do not help (you will still see the old phrase "homestead reduction"):
| Homestead exemption | Owner-occupancy credit | |
|---|---|---|
| Who | 65+, permanently and totally disabled, or a surviving spouse; income-tested | Anyone who owns and lives in the home as their primary residence |
| What it does | Removes $29,000 of market value from tax ($58,000 enhanced) | Cuts the tax from older levies by a percentage (2.5% today, rising to 15.38%) |
| Form | DTE 105A (DTE 105I for disabled veterans) | DTE 105C |
| Deadline | December 31 | December 31 |
| File with | County auditor | County auditor |
You can have both. If you are a senior or disabled homeowner and have only one of them, you are probably leaving money on the table.
Who Qualifies for the Homestead Exemption
- Age or disability: you are 65 or older by the end of the tax year, or permanently and totally disabled, or the surviving spouse of someone who was receiving it, if you were at least 59 when they died.
- Ownership and residence: you own the home and it is your principal residence on January 1. The exemption covers the house and up to one acre. A home held in a living trust you have the right to live in qualifies; one held by an LLC or corporation does not.
- Income: your Ohio adjusted gross income (line 3 of the Ohio return, yours plus your spouse's) for the prior year must be at or below the limit:
| Tax year | Bills paid in | Income year tested | Ohio AGI limit |
|---|---|---|---|
| 2025 | 2026 | 2024 | $40,000 |
| 2026 | 2027 | 2025 | $41,000 |
Ohio AGI excludes Social Security, so many retirees whose total income is well above $41,000 still qualify. Check line 3 of your Ohio return, not your total income.
Grandfathered owners: if you received the homestead exemption for tax year 2013, you are not subject to the income test at all, and you keep that status if you move to another Ohio home by filing form DTE 105G with your new application.
What It Is Worth
The exemption removes $29,000 of market value from taxation (the figure for tax year 2025; it is adjusted for inflation). Because Ohio taxes 35% of market value, that is about $10,150 of assessed value. What that saves depends on your local effective tax rate:
- At 70 effective mills, roughly $710 a year.
- Summit County reports an average saving of about $535 a year.
Enhanced exemption: veterans rated 100% disabled by the VA (or paid at 100% for individual unemployability), their surviving spouses, and surviving spouses of first responders killed in the line of duty get $58,000, double the standard amount, with no income test. Veterans file DTE 105I with their DD-214 and VA award letter. See our guide to disabled veteran exemptions by state for how Ohio compares.
How to Apply
- Get form DTE 105A from your county auditor's website (or DTE 105I for the enhanced veterans' version). Disabled applicants also need a physician's certificate (DTE 105E) or proof from a government agency.
- File it with the county auditor by December 31 of the year you want it. (For manufactured and mobile homes, the deadline is the first Monday in June.)
- If you file no Ohio return because your income is too low, the auditor will ask for form DTE 105H to confirm your income.
- You file once. Most counties carry it forward; some send periodic continuing-eligibility forms. Tell the auditor if you move or your situation changes.
Missed it? You can file a late application for the prior year only, using that year's income limit. Anything earlier is lost.
The Owner-Occupancy Credit, and Why It Matters More Now
The owner-occupancy credit cuts your tax on qualifying levies (generally those first approved before September 2013 and their renewals) by 2.5% for your primary residence. Until now, homes also got a separate 10% "non-business" rollback on those same levies, for 12.5% in total.
The 2025 reform law (House Bill 186) moves that relief entirely onto owner-occupants:
| Tax year | Bills paid in | Owner-occupancy credit | 10% non-business rollback on homes | Total for an owner-occupant |
|---|---|---|---|---|
| 2025 | 2026 | 2.5% | 10% | 12.5% |
| 2026 | 2027 | 5.70% | 7.5% | 13.2% |
| 2027 | 2028 | 8.92% | 5% | 13.92% |
| 2028 | 2029 | 12.15% | 2.5% | 14.65% |
| 2029 | 2030 | 15.38% | 0% | 15.38% |
Two consequences:
- If you live in your home and have not filed DTE 105C, file it now. Without it you will lose the 10% rollback as it phases out and get none of the replacement. The deadline is December 31.
- Landlords and second-home owners lose the 10% rollback over four years and get nothing in its place, so their bills rise.
The Rest of the 2026 Reform, in Plain English
A package of property tax laws signed in December 2025 took effect in March 2026. Besides the rollback shift above, the pieces a homeowner will notice:
- Inflation cap credit (HB 186). In school districts at the 20-mill "floor", where taxes would otherwise rise automatically with values, revenue growth is capped at inflation. The difference shows up as a credit on your bill; some homeowners will see it starting with the second-half 2026 bill.
- Inside millage cap (HB 335). In reappraisal and update years, unvoted "inside" millage can no longer let revenue grow faster than inflation. Starts with tax year 2026, so bills in 2027.
- More levies count toward the 20-mill floor (HB 129) and county budget commissions can trim excessive voted levies (HB 309).
- Fewer kinds of levies (the 2025 budget, HB 96): no new replacement levies, and an end to certain school emergency and substitute levies. Counties may also add their own unreimbursed homestead exemption or owner-occupancy credit.
State lawmakers estimate the package at more than $3 billion of relief over several years, but most of it shows up gradually, mainly on bills from 2027.
Why Ohio Bills Are Going Up Anyway
Forty-one counties are in a reappraisal or update for tax year 2026, with average value increases reported at about 18% in Summit, 22% in Ashland and 30% in Ashtabula. Values and taxes do not move one-for-one, because voted levies are rolled back as values rise, but inside millage and levies at the 20-mill floor do grow, and the new caps only partly offset that. If your new value looks too high, you can challenge it at the county Board of Revision between January 1 and March 31 of the following year (form DTE 1). See why your property tax bill went up and how to appeal.
What Might Change Next
- Abolition: the campaign to abolish Ohio property taxes did not gather enough signatures for 2026 and is aiming for the November 2027 ballot. More on that and other states in states with no property tax.
- A 3% cap: two Republican lawmakers proposed a constitutional amendment in September 2026 to cap annual growth in the taxable value of owner-occupied homes at 3%. It would need three-fifths of both chambers to reach the ballot.
- A higher income limit: a bill to raise the homestead income limit to $55,000 has been introduced; until it passes, the limit is $41,000 for tax year 2026.
Quick Answers
At what age do you stop paying property taxes in Ohio?
You never stop entirely. At 65, if your Ohio AGI is within the limit, the homestead exemption removes $29,000 of value. See at what age you stop paying property taxes for other states.
Is the Ohio homestead exemption automatic?
No. You apply once with form DTE 105A at your county auditor, by December 31.
When are Ohio property taxes due?
In two halves, usually around January–February and June–July, set by each county treasurer. See due dates by state.
Bottom Line
Every Ohio homeowner who lives in their home should have the owner-occupancy credit on file (DTE 105C), and it grows from 2.5% to 15.38% by 2029 while the general 10% rollback disappears. If you are 65 or older or disabled and your Ohio AGI is $41,000 or less, or you are a 100% disabled veteran, add the homestead exemption (DTE 105A or 105I). Both are free, both go to the county auditor, and both are due by December 31. Check your county's rates on our Ohio property tax pages.
General information, not legal or tax advice. Figures are from Ohio Department of Taxation forms, county auditors and the 2025–2026 reform laws as of October 2026; the exemption amount and income limit are adjusted annually. Confirm with your county auditor.