Ohio Homestead Exemption: Are You Leaving Property Tax Savings on the Table?

What the homestead exemption actually does

Here is the short version. The Ohio homestead exemption does not change what your house is appraised at. It shields part of your home's market value from tax, so the bill you get in the mail is smaller. The Montgomery County Auditor describes it as a credit equal to the taxes on a set slice of your home's value. For 2025, that slice was $29,000 of market value, and state law now adjusts the amount for inflation each year.

What that is worth in dollars depends on your local tax rate, which changes from Kettering to Centerville to Huber Heights. I would rather not hand you a made up savings number. The county can tell you what it means for your address.

Who qualifies

You have to own the home and live in it as your primary residence on January 1 of the year you apply. Beyond that, you fit one of these groups, according to the Montgomery County Auditor and the Ohio Department of Taxation application:

Two things trip people up. First, the home cannot be owned by a company or an LLC. Second, if you got the home from a relative other than a spouse, the state application says it generally does not qualify. If that is your situation, call the Auditor before you spend time on the form.

The income limit, in plain English

The senior and disabled exemption is income tested. The county counts the combined income of you and your spouse, measured as Ohio modified adjusted gross income, for the year before you apply. The Montgomery County Auditor lists $41,000 for 2025 income on current applications and $40,000 for 2024 income on late applications. The limit moves with inflation, so the number can change from year to year.

If your income is close to the line, do not guess. Pull your tax return and call the Homestead Hotline. A few hundred dollars either way can decide it.

How to apply in Montgomery County

The application is free and goes to the County Auditor, not the state. Here is the path the Auditor's Office lays out:

• •Get the application (Ohio form DTE 105A) from the Auditor's Office, or call the Homestead Hotline at 937-225-4341.
• •Mail it to Montgomery County Auditor, Attn: Homestead Department, 451 W Third Street, Dayton, OH 45422. Veterans, disabled applicants, and certain surviving spouses must print the form and mail it with their supporting documents.
• •Make sure it is received by December 31. Do not wait for the last week of December and trust the mail.

Once you are approved, you generally do not need to reapply unless you move or your status changes. If you missed last year, the Auditor says you can still sign up by December 31 and get a reduction on last year's taxes.

What this means if you are buying or selling

I bring this up with a lot of clients, because it shows up in real decisions. Retirees downsizing into a Kettering or Oakwood ranch, or a Centerville condo, should know the exemption belongs to the homeowner and the property they live in on January 1. It does not automatically follow you to the next house. Plan to file again after you move.

If you are a veteran with a 100% rating, the larger disabled veteran exemption can change how much house is comfortable on a monthly basis. Pair it with the numbers in our VA loan guide and run your own payment in the mortgage calculator.

And if your reappraisal notice jumped this summer, remember that the exemption and an appeal are two separate tools. Our guide to the Montgomery County value appeal covers the other half. Comparing towns? Start with Kettering and Centerville, then see how a purchase stacks up in the rent vs buy tool.

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