Q:

What is the Ohio Homestead Act?

A:

Quick Answer

The Ohio Homestead Act allows low-income senior citizens to have a reduced property tax bill, according to the Ohio Department of Taxation. Disabled citizens of Ohio can also receive the benefit of this tax exemption.

Continue Reading

Full Answer

The act reduces taxes that qualified individuals owe since the property's market value decreases, explains the Ohio Department of Taxation. This action significantly lowers property taxes in comparison to taxes owed on the property's actual market value. The exemption is a type of credit provided toward the assessment of taxpayers' property value.

Senior citizens and disabled Ohio residents can qualify for up to $25,000 off the assessed market value of their homes, reveals the Ohio Department of Taxation. For example, if a taxpayer's house is worth $200,000 at market value, then the highest amount considered for tax purposes is $175,000. The average amount of taxes that qualified homeowners saved in 2011 was $435. The act is also limited to homestead owners. Individuals qualify as homestead owners in Ohio if they have a property of 1 acre or less.

The Act includes updates with minor changes in 2014, according to the Ohio State University Extension. One of these changes includes a limitation of the homeowners' gross income and subjects new applicants to means testing. New applicants cannot have a gross income exceeding a certain index-adjusted amount each year, which was approximately $30,400 for 2014.

Learn more about Law

Related Questions

Explore