Property taxes are a reality of homeownership, providing essential revenue for local governments to fund public services like education, transportation, and public safety. Understanding property tax rates and the factors that affect them is essential for current and prospective homeowners in Ohio.
How Ohio Property Taxes are Calculated
The bad news for Ohio homeowners is that our state has one of the highest property tax burdens in the country. The average county property tax rate in 2022 was 1.49 percent, resulting in an average of $3,725 in annual property taxes. Here’s how these rates are calculated:
- Property valuation: The first step is to determine your property’s value. In Ohio, this is done through a mass appraisal process conducted by each county auditor’s office. The county auditor appraises all properties every six years, with an update in the third year of the cycle. Appraisals are based on property location, age, size, and condition.
- Assessment ratio: Next, the county auditor applies an assessment ratio or assessed value. In Ohio, this is set at 35 percent of the market value. So a property valued at $400,000 would have an assessed value of $140,000.
- Tax rates: Property tax rates in Ohio vary by location, with each taxing jurisdiction setting its own rate. The tax rate is expressed as a millage rate, with one mil equivalent to $1 in property taxes per $1,000 of assessed value. The rates of all overlapping districts are added together to determine a property’s total tax rate.
Exemptions and Reductions
Homeowners in Ohio can take advantage of several property tax exemptions and reductions:
- The homestead exemption is available to homeowners aged 65 and older, as well as those with permanent and total disabilities. This exemption reduces the taxable value of an owner-occupied property by $25,000, resulting in lower property taxes.
- The owner-occupancy reduction offers a 2.5 percent reduction in the taxable value of an owner-occupied property. To be eligible, the property must be the homeowner’s primary residence.
- The Current Agricultural Use Value (CAUV) program allows qualifying farmland to be taxed lower than its market value. This program aims to support Ohio’s agricultural industry by reducing the tax burden on farmers.
Paying Your Property Taxes
Property taxes in Ohio are paid twice a year, with bills typically due in January and July. Homeowners can pay their taxes in a lump sum or via an installment plan. Failure to pay property taxes on time may result in penalties and interest charges.
Appealing Your Property Value
Ohio homeowners who disagree with their property’s assessed value may appeal through the county Board of Revision (BOR). To initiate the process, file a complaint with the BOR. The appeal deadline is usually a few months after receiving your property value assessment. Be prepared to present evidence supporting your claim, such as comparable sales data or documentation of assessment inaccuracies. At Vutech | Ruff, Cutler Real Estate, our award-winning team is happy to provide valuable resources to homebuyers and sellers in the Columbus area. To learn more about property taxes or for help navigating the Ohio real estate market, please call our office at 614-897-0618.