Ohio has three main ways to lower the property tax bill on the home you live in: the homestead exemption for older and disabled homeowners, the owner-occupancy credit for anyone living in a home they own, and newer credits passed by the legislature in 2025. You apply through your county auditor.
At a glance
- Homestead exemption, tax year 2025
- Taxes on $29,000 of market value [1]
- Disabled veterans (100% rating)
- Taxes on $58,000, no income limit [3]
- Income limit for 2026 applications
- $41,000 of 2025 income [2]
- Who qualifies
- 65 or older, or totally and permanently disabled, living in the home on Jan. 1 [2]
- Deadline for tax year 2025 (Lorain County)
- December 31, 2026 [3]
The homestead exemption
The homestead exemption doesn’t take a fixed dollar amount off your bill. Instead, it removes part of your home’s market value from taxation. For tax year 2025, paid in 2026, that’s $29,000 of value [1]. What that saves you depends on your local tax rates; the Lorain County Auditor puts typical savings at $400 to $450 a year [3].
Who qualifies
You must own the home and live in it as your main residence on January 1 of the year you apply, and either:
- be 65 or older by the end of that year, or
- be totally and permanently disabled as of January 1 [2].
Disability can be shown with Social Security paperwork or a physician’s statement on form DTE 105E [2].
The income limit
For applications in 2026, total household income must be $41,000 or less in 2025 [2]. The auditor looks at your Ohio adjusted gross income (line 3 of the state return) plus any Ohio business income deduction [2]. Your spouse’s income counts. Social Security income doesn’t, though many pensions do [2].
Disabled veterans with a 100% disability rating, and certain surviving spouses, get the enhanced exemption: twice the value, $58,000 for tax year 2025, with no income limit [1][3].
| Who | Market value exempted | Income limit |
|---|---|---|
| Homeowners 65+ or totally and permanently disabled | $29,000 | $41,000 (2025 income) |
| Disabled veterans (100% rating) and certain surviving spouses | $58,000 | None |
How to apply
File form DTE 105A with your county auditor, along with any income addendum the auditor asks for [2]. In Lorain County, new applicants can file from the first Monday in January through December 31, and the application counts as filed when the auditor’s office receives it, not when it’s postmarked [3]. Check your own county’s dates.
The owner-occupancy credit
Any Ohioan who owns and lives in their home on January 1 can get the owner-occupancy credit, regardless of age or income. It lowers the tax on certain levies. An owner and spouse can get it on only one home [4][5].
The credit only applies to levies passed before 2014; newer levies don’t get it [4]. Ask your auditor whether you already have it. If not, file form DTE 105C by December 31 of the year you’re applying for [5].
What changed in 2025 and 2026
The Ohio legislature passed several property tax changes in 2025. Two affect homeowners directly:
- Bigger owner-occupancy credit, no more non-business credit. In December 2025 the state began merging the separate non-business credit into the owner-occupancy credit. The change phases in over several years. By tax year 2029, the owner-occupancy credit will save 15.38% on pre-2014 levies, and the non-business credit will be gone [4].
- The Inflation Cap Credit. House Bill 186 created a new credit starting with second-half 2026 tax bills. It limits growth in school taxes to the rate of inflation, but only in school districts at the state’s 20-mill floor . It’s applied automatically; you don’t have to apply [6][7].
Where to get help
Your county auditor’s office handles the homestead exemption and the owner-occupancy credit, and can tell you which reductions are already on your bill.
Sources
- Lucas County Auditor: Homestead Exemption
- Lucas County Auditor: Homestead for seniors and disabled persons
- Lorain County Auditor: Homestead Exemption
- Lucas County Auditor: Owner Occupancy Credit
- Warren County Auditor: Owner-Occupied Credit
- Lucas County Auditor: Inflation Cap Credit FAQ
- Lucas County Auditor: Changes to the second-half property tax bill for 2026
Common questions
What is the income limit for the Ohio homestead exemption?
For applications filed in 2026, household income of $41,000 or less in 2025, measured by Ohio adjusted gross income plus any business income deduction. A spouse's income counts; Social Security does not. Disabled veterans with a 100% rating have no income limit.
How much does the Ohio homestead exemption save?
For tax year 2025 (bills paid in 2026), it exempts the taxes on $29,000 of your home's market value, or $58,000 for qualifying disabled veterans. The dollar savings depend on your local tax rates; the Lorain County Auditor puts typical savings at $400 to $450 a year.
What is the owner-occupancy credit in Ohio?
A reduction on certain property tax levies for people who own and live in their home on January 1. It applies to one home per owner and spouse. A 2025 law is folding the separate 10% non-business credit into it, phased in through tax year 2029.