Ohio's Two-Track Homestead Exemption: Senior/Disabled at $40,000 OAGI Cap (Form DTE 105A) Versus the No-Income-Test Disabled Veteran Path (Form DTE 105I) That Shields $50,000 of Market Value
Updated April 2026
Ohio operates two distinct homestead exemption tracks. The senior/disabled track (Form DTE 105A) is income-tested: age 65+ or permanently disabled, with Ohio Adjusted Gross Income (OAGI) at or below $40,000 for the 2025 application year. Once approved, this track shields approximately $26,200 of market value from property tax (current statutory adjustment of the original $25,000 figure). The disabled veteran track (Form DTE 105I) has no income test and shields $50,000 of market value for veterans rated 100% permanently and totally disabled by the VA. Both tracks operate as exemptions on the home's market value before the local tax rate applies; the practical dollar savings depend on the local effective tax rate.
Senior/Disabled Track (Form DTE 105A): The Income Test
Eligibility for the 2025 application year (tax year 2025):
- Age 65 or older by December 31, 2025, OR permanently disabled with appropriate certification.
- Ohio Adjusted Gross Income (OAGI) at or below $40,000, combined for the owner and owner's spouse residing in the property. OAGI is the federal AGI adjusted for Ohio-specific items (per Ohio Form IT-1040). This is narrower than the broader “total household resources” definitions used by Michigan, Minnesota, and several other states.
- Owner of the home as of January 1, 2025, used as primary residence.
- Ohio resident.
Mechanic: shields approximately $26,200 of market value (the figure adjusts for inflation; the original 2007 statutory amount was $25,000). Local property tax rate applies to the home's market value minus the exemption. At Ohio's typical effective tax rate of ~1.5%, the exemption saves a qualifying senior roughly $390-$420 per year.
Form DTE 105A is filed once with your county auditor. Once approved, the exemption is generally automatic in subsequent years, but the auditor periodically requests proof of continued eligibility (income re-verification). The income test uses OAGI from the most recent Ohio income tax return, which can be lower than federal AGI due to Ohio retirement income deduction, Social Security exclusion, and other Ohio-specific subtractions.
Disabled Veteran Track (Form DTE 105I): No Income Test, $50,000 of Market Value
Veterans rated 100% permanently and totally disabled as a result of military service file Form DTE 105I instead of DTE 105A. Key differences:
- No income test. The 100% disability rating qualifies the veteran regardless of income.
- $50,000 of market value shielded, roughly double the senior/disabled track's $26,200.
- Surviving spouses of qualifying disabled veterans, surviving spouses of first responders killed in the line of duty, and certain other narrow categories are eligible without income tests.
For an Ohio veteran who's also age 65+, the DV track produces materially better outcomes than the senior track on both dimensions (no income cap, larger exemption). File DTE 105I with your county auditor and VA documentation of the 100% rating attached.
No Senior Assessment Freeze in Ohio
Ohio does not provide a senior-specific assessment freeze. Reassessment occurs on a triennial cycle for most Ohio counties (with annual updates between full reassessments). Senior protection is the homestead exemption above, not a freeze on growth. In hot markets where county valuations rise sharply at reassessment, seniors' bills track those increases above the exemption.
Frequently Asked Questions
My Ohio federal AGI is $45,000 but my OAGI is $32,000 due to Ohio's retirement income deduction. Do I qualify?
Yes, Ohio's homestead exemption uses Ohio Adjusted Gross Income (OAGI), not federal AGI. The Ohio retirement income deduction subtracts qualifying pension and retirement income from federal AGI to compute OAGI. Your $32,000 OAGI is well under the $40,000 cap, so you qualify. Don't use your federal AGI to evaluate eligibility, pull your Ohio Form IT-1040 line for OAGI specifically. Many Ohio retirees qualify for homestead exemption who would not qualify if federal AGI were the test.
I'm a 100% service-connected disabled Ohio veteran with $90,000 OAGI. Does income disqualify me?
No, the disabled veteran track (Form DTE 105I) has no income test. Your 100% service-connected permanent and total disability rating qualifies you regardless of income. You should file DTE 105I rather than DTE 105A; the DV form is also more generous ($50,000 of market value vs. ~$26,200 on the senior track). Bring VA documentation of the 100% rating to the county auditor along with the DTE 105I form. Don't accidentally file DTE 105A, at your income level it would be denied.
My Ohio property is in a CAUV (current agricultural use valuation) program. Can I still claim homestead exemption?
Yes for the residential portion. Ohio's homestead exemption applies to the home and the immediate residential parcel. CAUV applies to the agricultural acreage and is administered separately, the two programs don't conflict. File Form DTE 105A for the home portion if income-eligible; the CAUV reduction continues operating against the agricultural acreage. If most of your parcel is CAUV-classified, the homestead exemption only shields the residential portion of value, but it's a meaningful reduction on top of the CAUV agricultural reduction.
