Property taxes are one of those ongoing costs that are easy to overlook while you’re focused on finding the right house, but they matter just as much as your mortgage payment once you own the home. If you’re buying in Centerville or Washington Township, it helps to understand how property taxes actually work before you get to the closing table, not after.
How Property Taxes Are Assessed
In Ohio, property taxes are based on the assessed value of your home, which is tied to the county auditor’s valuation of the property. That valuation is reviewed periodically, and it’s meant to reflect the home’s market value, though it doesn’t always move in lockstep with what homes are actually selling for in a given year. The tax rate applied to that value is set by a combination of local taxing authorities, including the school district, township, county, and other local levies that voters have approved over time.
Property Tax Proration at Closing
Because property taxes are paid in arrears in Ohio, buyers and sellers typically split the tax bill at closing based on how long each of you owned the home during the tax period. Your closing disclosure will show a line item for this proration, and it’s worth asking your agent or title company to walk you through exactly how it was calculated so there are no surprises.
How Tax Rates Can Change Over Time
It’s worth knowing that your property tax bill isn’t locked in forever. If local voters approve a new school levy or other tax measure, or if the county auditor’s periodic reassessment raises your home’s valuation, your bill can go up. These changes happen independently of anything you do as a homeowner, so it’s a good idea to check in on your tax bill each year rather than assuming it will stay flat.
Escrowing for Property Taxes
Most lenders require an escrow account as part of your monthly mortgage payment, which means a portion of what you pay each month is set aside specifically to cover property taxes (and often homeowners insurance) when they’re due. This spreads the cost out over the year instead of leaving you with one large bill, and your lender handles the payment to the county on your behalf.
Budgeting for the Long Term
When you’re comparing homes, it’s worth looking at the current tax bill for each property, since rates and assessed values can vary between neighborhoods and even between similarly priced homes. A knowledgeable local agent can help you pull that information so you’re budgeting with real numbers rather than guesswork.
Frequently Asked Questions
Who sets property tax rates in Ohio?
Property tax rates are set by a combination of local taxing authorities, including school districts, townships, counties, and any special levies voters have approved. The county auditor determines the assessed value that those rates are applied to.
Will my property taxes go up after I buy the home?
They can. Taxes may change due to a county reassessment, newly approved levies, or other local tax measures. It’s not something a buyer controls, but it’s worth monitoring your annual bill once you own the home.
What happens if I don’t escrow for taxes?
If your loan doesn’t include an escrow account, you’re responsible for paying the county directly when the bill comes due. Some buyers prefer this if they want more control over their funds, but it does require discipline to set money aside throughout the year.
Can I appeal my property’s assessed value?
Yes. Ohio homeowners can file a complaint with their county’s Board of Revision if they believe their home’s assessed value is inaccurate. There’s a specific filing window each year, so it’s worth checking with the county auditor’s office for current deadlines and procedures.
Kelly Nation is a real estate agent with RE/MAX Alliance serving Centerville, Ohio, Washington Township, and the greater Dayton area. Thinking about buying or selling in the area? Reach out to Kelly Nation with RE/MAX Alliance at 937-609-5852 to get started.
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