Guide · Ohio

Does a first home in Ohio get the homestead exemption or the 2.5% credit?

Most first-time buyers in Ohio will not get the homestead exemption. Almost all can get the 2.5% owner-occupancy credit. Who gets which, and the box to check at closing.

Short answer

Probably the 2.5% credit, probably not the homestead exemption. The homestead exemption is for seniors, people who are totally disabled, disabled veterans and surviving spouses of first responders killed on duty. The owner-occupancy credit is for anyone who lives in the home they own, and you can claim it on the transfer form at closing.

The short version

Ohio has two property tax breaks with confusingly similar names. Sellers, agents and relatives mix them up all the time. Here is the plain difference:

	Homestead exemption	Owner-occupancy credit
Who gets it	Homeowners 65 and older, people who are permanently and totally disabled, disabled veterans, and surviving spouses of public service officers killed in the line of duty	Anyone who owns the home and lives in it as their main residence on January 1
What it does	Takes a set slice of your home's value off the tax rolls	Cuts the tax charged by older, qualifying levies by 2.5%
Income test	Yes for seniors and disabled owners; none for qualifying disabled veterans	None
Form	DTE 105-A, 105-I or 105-K, filed with the county auditor	DTE 105D, or a checkbox on the DTE 100 transfer form

If you are a 32-year-old teacher buying your first house in Hilliard, the first column almost certainly does not apply to you. The second one does.

Who really gets the homestead exemption?

We checked the rules posted by the Franklin County and Lucas County auditors, which follow the same state law. For tax year 2025 bills paid in 2026:

Seniors and totally disabled owners get the first $29,000 of the auditor's value exempted. Lucas County's own example: a $200,000 home is taxed as if it were worth $171,000.
The income cap is $41,000 of Ohio adjusted gross income for that group. Lucas County notes Social Security doesn't count toward it, but a spouse's taxable income does.
Disabled veterans with a 100% rating, or paid at the total-disability rate, get double: $58,000 exempted, with no income limit.
Surviving spouses of police officers, firefighters and other public service officers killed on duty also get the $58,000 amount.

Those last two groups matter on a site built for first responders and veterans. A disabled veteran buying a first home is one of the few first-time buyers who can claim the exemption right away. If that's you, file form DTE 105-I with your county auditor. A surviving spouse files DTE 105-K.

Everyone else should stop counting on it. A working first-time buyer under 65 does not qualify just because the home is their primary residence. People hear "homestead" and assume it means "the house I live in." In Ohio it doesn't.

The 2.5% credit: smaller than it sounds, but free money

The owner-occupancy credit used to be called the 2.5% rollback. The name changed, but it still trips people up. The Franklin County Auditor spells out the conditions:

You must own the home and live in it as your main residence as of January 1 of the tax year.
You and your spouse can claim it on only one property.
It applies only to levies passed in or before the November 2013 election.

That third point is the fine print. Ohio stopped extending the credit to new levies after 2013. A school levy your neighbors approved in 2018 gets no 2.5% cut. So the credit trims part of your bill, not 2.5% of the whole thing. In a district that has passed several newer levies, it shrinks every year.

It's still worth filing. It costs nothing and requires no income check, and the county won't apply it unless you ask.

How to claim it

You have two chances:

At closing. The buyer, or the title agent acting for the buyer, fills out the state conveyance form, DTE 100. On the 2026 version, line 10 is the "Application for owner-occupancy (2.5% on qualified levies) reduction." It asks whether the property will be your principal residence by January 1 of next year. Make sure someone checks yes. Ask your title agent to show you the line.
After closing. If it was missed, file DTE 105D with the county auditor. The state form's instructions set a December 31 deadline, and the reduction shows up on the bills you pay the following calendar year.

The trap: the seller's tax bill isn't your tax bill

Ohio property taxes are paid a year behind. The bill you pay in 2026 is for tax year 2025. When you're shopping, the tax figure on the listing reflects the seller's situation, not yours.

Three things can make your bill go up after you move in:

The seller had the homestead exemption. A retired seller over 65 may have been taxed on $29,000 less value. The DTE 100 asks on line 8 whether the seller was getting the senior, disabled or surviving-spouse exemption, so the county knows to take it off. Your bills will rise once it's gone.
The seller lived there, and you're claiming nothing. Forget the 2.5% credit and you pay more than the seller did.
New levies or a reappraisal. Counties reappraise on a cycle, and voters pass new levies. Neither is under your control.

Why this matters for your mortgage: your lender sets up an escrow account to pay property taxes and collects 1/12 of the yearly bill with each payment. If the lender sizes escrow off the seller's discounted bill, your payment can jump a year later when the escrow analysis catches up. Ask the lender which tax figure it used and whether it accounted for the seller's exemption ending.

Read your first bill like an auditor

Your first full tax bill after closing is the report card. It lists the gross tax, each reduction and credit, and the net amount due. Look for three things: your name as owner, an owner-occupancy line, and no leftover senior exemption that belongs to the seller. If the credit line is missing, you still have until December 31 to file. If a seller's exemption is still showing, call the auditor and ask when it comes off, so you can plan for the higher bill instead of being surprised by it.

Your checklist

Before you make an offer, look up the home on the county auditor's website. Check the current bill for a homestead exemption or other credits.
If the seller has the homestead exemption, ask your lender to estimate taxes without it.
At closing, confirm the owner-occupancy question on the DTE 100 is marked yes.
Disabled veterans and surviving spouses of fallen first responders: file DTE 105-I or 105-K with the auditor right after you close.
When your first full tax bill comes, look for the owner-occupancy line. If it's missing, file DTE 105D before December 31.

Property taxes are only one piece of the monthly payment. Once you know roughly what yours will be, check your eligibility to see whether the hero rate and the 3% to 3.5% down payment help fit your county's limits.

Reader questions

Do first-time buyers get the homestead exemption in Ohio?

Not as first-time buyers. Ohio's homestead exemption is for owners 65 and older, people who are permanently and totally disabled, disabled veterans and surviving spouses of public service officers killed on duty. A first-time buyer who fits one of those groups can apply after closing.

How much is the Ohio homestead exemption in 2026?

County auditors list $29,000 of value exempted for seniors and disabled owners, with a $41,000 income limit, for tax year 2025 bills paid in 2026. Qualifying disabled veterans and surviving spouses of fallen first responders get $58,000.

Does the 2.5% rollback apply to my whole tax bill?

No. The owner-occupancy credit applies only to levies passed in or before the November 2013 election, per the Franklin County Auditor. Newer levies are charged in full.

How do I apply for the owner-occupancy credit?

Mark yes on the owner-occupancy question (line 10) of the DTE 100 transfer form at closing, or file DTE 105D with your county auditor by December 31.

Why did my property taxes go up after I bought?

Common reasons are that the seller had a homestead exemption you don't qualify for, the owner-occupancy credit wasn't claimed, or new levies or a reappraisal took effect. Your tax bill lists each credit, so compare it with the seller's last bill.

Free printable: the Ohio homebuyer paperwork checklist. Papers, steps, programs and lender questions in two printed pages. Get the sheet