From the Homestead Exemption to federal energy credits, we have information on the top tax breaks for Ohio homeowners in 2025.
For many people, tax season can be—well, taxing. The good news? Several tax breaks are designed to help Ohio homeowners reduce their tax burden and save money. If you’re unsure what exemptions, deductions, and credits you qualify for, start with these:
Homestead Exemption
The Homestead Exemption helps lower property taxes for qualified Ohio homeowners by reducing the taxable value of their home.
Who is Eligible:
- Homeowners 65 or older
- Homeowners who are permanently disabled
- Surviving spouses of those who qualified, if at least 59 at the time of the homeowner’s death
- Honorably discharged or released disabled veterans
In addition to meeting these criteria, the applicant must also own and have occupied their home as their primary place of residence as of Jan. 1 of the year in which the application is filed.
Benefits:
- Reduces property taxes by excluding up to $25,000 of your home’s market value from taxation
- Disabled veterans receive a larger reduction, up to $50,000, in addition to standard benefits
How to Apply:
File one of the following applications with your county auditor’s office:
- Homestead Exemption Application for Senior Citizens, Disabled Persons and Surviving Spouses
- Homestead Exemption Application for Disabled Veterans and Surviving Spouses
Learn more about the State of Ohio Homestead Exemptions
Owner-Occupied Credit
The Owner Occupied, or Owner Occupancy, credit helps make homeownership more affordable for Ohioans who live in their homes full-time.
Who is Eligible:
- Homeowners who occupy their property as their primary residence by January 1 of the tax year
Benefits:
- 2.5% reduction on the taxable value of your home
- No income restrictions apply
How to Apply:
Submit the Application for Owner-Occupancy Tax Reduction to your county auditor’s office.
Mortgage Tax Credit (MTC)
The Ohio Housing Finance Agency (OHFA) offers a tax credit that helps Ohio homeowners reduce the federal taxes they owe by covering a portion of their mortgage interest.
Who is Eligible:
- First-time homebuyers or those who haven’t owned a home in the past 3 years
- Must meet income and home price limits, debt-to-income ratios, and credit score minimums:
- Conventional/USDA/VA loans: 640+
- FHA loans: 650+
Benefits:
- Claim up to 40% of annual mortgage interest, capped at $2,000/year, if using an OHFA loan
- If using a non-OHFA loan:
- 20% credit for homes in non-target areas (no cap)
- 25% in target areas (max $2,000)
- 30% for bank- or government-owned homes (max $2,000)
How to Apply:
Apply through an OHFA-approved lender in your area or call OHFA toll-free at 888.362.6432 to begin the application process.
Energy Efficient Home Improvement Credit
This federal tax credit was created to help homeowners save money on qualified energy-efficient upgrades, such as solar panels, heat pumps, insulation, new exterior doors and more.
Who is Eligible:
- United States homeowners who have made energy-efficient improvements to their primary place of residence
Benefits:
Qualifying homeowners that have made energy-efficient improvements can claim 30% of the cost, up to $3,200 per year, as a tax credit.
- Up to $1,200 can be claimed per year for energy-efficient property costs and certain energy efficient home improvements.
- Up to $2,000 can be per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers.
How to Apply:
Keep receipts for energy-efficient improvements and use the following form to submit residential energy credits for federal tax filings.
Navigating taxes as a homeowner can feel overwhelming, but taking advantage of available tax breaks can lead to significant savings.
Whether you’re new to homeownership or a seasoned pro, understanding these benefits is key. At Ohio Real Title, we’re here to make your closing process seamless and provide property tax reports to keep you informed.
If you have questions about property taxes or need guidance, don’t hesitate to reach out, we’re happy to help!
Please find more information on Ohio Tax Prorations and Navigating Tax Season at our blog.