State Homestead Laws in General
State homestead laws allow property owners to register a small parcel of their domicile as a "homestead" and thus off limits to creditors in the event of a bankruptcy. These statutory protections can ease some of the pressure on homeowners who find themselves in dire economic situations, preventing homelessness in some situations. The amount of one's property that may be declared a homestead is based on acreage, value of equity, or both. Federal law also provides homestead protections.
Generally, state homestead protection laws help struggling homeowners in the following three ways:
In order to be considered a "homestead," the property must be the owner's primary residence. In other words, this exemption cannot be applied to a vacation home or second house.
Ohio Homestead Laws at a Glance
Ohio homestead laws allow up to $25,000 worth of a person's property to be declared a homestead and exempted from property taxes. For example, a homeowner with a home valued at $100,000 may deduct up to $25,000 as a homestead, which means they would only have to pay property tax on $75,000 worth of the property. This translates into an average annual savings of $400.
Typically, this exemption is sought out by those in bankruptcy and/or facing foreclosure. But Ohio also extends homestead protections to homeowners who are senior citizens (over 65), disabled persons, or surviving spouses. Fill out Form DTE 105A (PDF) and file it with the county auditor (in the county where the property resides) if you would like to apply.
Learn more about Ohio homestead laws in the chart below, with links to additional resources.
|Max. Property Value That May Be Designated 'Homestead'||$25,000|
|Maximum Acreage (Urban)||-|
|Maximum Acreage (Rural)||-|
Note: State laws are always subject to change at any time, usually when new legislation is enacted but also through the decisions of higher courts and other means. You should contact an Ohio real estate attorney or conduct your own legal research to verify the state law(s) you are researching.
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Ohio Homestead Laws: Related Resources
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