If you own or rent a home in Ohio, you may have to pay school district taxes to help fund local schools. Whether you have to pay these taxes depends on the district where your property is located. Some districts have a “homestead exemption” that exempts owner-occupied homes from school district taxes. However, even if your home is exempt from the homestead exemption, you may still have to pay school district taxes if you rent it out. The specific rules for school district taxes vary from district to district, so it’s important to check with your local tax authority to find out if you have to pay these taxes.
Residential Homestead Exemption
Ohio homeowners can claim a Homestead Exemption to reduce their property taxes. This exemption is available to owner-occupied homes that are the primary residence of the owner. The exemption amount varies depending on the school district in which the home is located.
Eligibility Requirements
- The home must be the owner’s primary residence.
- The owner must have owned and occupied the home for at least one year.
- The owner must not have claimed the exemption for any other property.
How to Apply
To apply for the Homestead Exemption, homeowners must file an application with their county auditor’s office. The application must be filed by December 31 of the year in which the exemption is claimed.
Exemption Amount
The amount of the Homestead Exemption varies depending on the school district in which the home is located. The following table shows the exemption amounts for each school district in Ohio:
| School District | Exemption Amount |
|---|---|
| Akron City School District | $25,000 |
| Cleveland City School District | $25,000 |
| Columbus City School District | $25,000 |
| Dayton City School District | $25,000 |
| Toledo City School District | $25,000 |
| Other School Districts | $5,000 |
Non-Homestead Tax Rates
In Ohio, non-homestead property is taxed at a higher rate than homestead property. The non-homestead tax rate is set by each school district and can vary from district to district.
The following table shows the non-homestead tax rates for some of the largest school districts in Ohio:
| School District | Non-Homestead Tax Rate |
| Columbus City Schools | 3.2% |
| Cincinnati Public Schools | 3.1% |
| Cleveland Metropolitan School District | 3.0% |
| Akron Public Schools | 2.8% |
| Dayton Public Schools | 2.7% |
Note that these are just a few examples, and the non-homestead tax rate for your school district may be different.
School District Tax Calculations
Ohio school district taxes are calculated based on the property value of your home and the millage rate set by your local school district. The millage rate is expressed in mills, which are equal to $1 for every $1,000 of assessed property value.
Assessment and Value
The first step in calculating your school district tax is to determine the assessed value of your home. This value is determined by the county auditor’s office and is typically around 35% of the market value of your home.
Millage Rate and State Share
Once you know the assessed value of your home, you can multiply it by the millage rate set by your local school district. The millage rate is typically between 10 and 20 mills, but it can vary depending on the district. On average, Ohio property owners will pay 21.03 mills for their local school district levies.
Local school districts do not keep all of the property taxes collected. A portion of the millage rate collected is dedicated to the state and a portion is distributed to other entities, such as libraries and park services.
The Ohio Department of Taxation uses the following formula to calculate the school district tax:
- School District Tax = Assessed Property Value × (Local School District Millage Rate – State School District Millage Rate)
Example
For example, if your home has an assessed value of $100,000 and the local school district millage rate is 15 mills and the state school district millage rate is 3.5 mills, your school district tax would be calculated as follows:
| Calculation | Amount | |
|---|---|---|
| Assessed Property Value | $100,000 | |
| Local School District Millage Rate | × 15 | |
| State School District Millage Rate | – 3.5 | |
| School District Tax | $1,150 |
Therefore, your annual school district tax would be $1,150. This amount is typically paid in two installments, one in May and one in November.
Ohio School District Tax: Payment Deadlines and Options
Ohio school district income tax is a local income tax levied by school districts in the state of Ohio. It is a flat-rate tax that is applied to all income earned by residents of the school district, regardless of where the income is earned. The tax rate varies from district to district, but it is typically around 1%. School district income taxes are used to fund local schools and provide additional revenue for school programs and services.
Payment Deadlines and Options
Ohio school district income taxes are due on April 15th of each year, along with your state and federal income taxes. However, there are a few different ways to make estimated tax payments throughout the year. This can help to avoid a large tax bill at the end of the year.
- Option 1: Make estimated tax payments using Form IT-1040ES, Ohio Estimated Income Tax Voucher.
- Option 2: Set up a monthly payment plan with your school district.
- Option 3: Have your employer withhold school district income taxes from your paycheck.
You may owe a penalty if you do not pay your school district income taxes by the deadline. The penalty is 10% of the unpaid taxes, plus interest.
| Payment Option | Due Date |
|---|---|
| Estimated Tax Payments | April 15th |
| Monthly Payment Plan | Due on the 15th of each month |
| Employer Withholding | Withheld from your paycheck throughout the year |
Well, there you have it, folks! Now you’re equipped with the knowledge to navigate the murky waters of Ohio school district taxes. Remember, it’s always a good idea to consult with your local tax professional if you have any specific questions or concerns, but hopefully, this article has provided you with a solid foundation. Thanks for reading, and be sure to drop by again soon for more tax-related tidbits and tricks!