A major Midwestern city known for its sports venues, world-famous Oktoberfest and Ohio River activities, Cincinnati, Ohio in Hamilton County offers thousands of homes for sale in all price ranges and architectural styles. Homes assessed at median values of $148,000 will owe property taxes in Hamilton County, Ohio of $2,274 annually. Hamilton County collects approximately 1.53 percent of a home’s fair market value as property tax.
According to Tax-Rates.org, Hamilton County has one of the higher average property tax rates in the U.S., ranking 332nd out of over 3000 other counties comprising all 50 states.
What Are Facts About Cincinnati Property Tax?
1. Hamilton County property tax is not funneled into Ohio’s budget, but is used to fund infrastructure, public transportation, school districts and government projects.
2. Since Cincinnati property tax is levied on properties, unpaid property taxes may lead to property tax liens. This lien remains affixed to a home’s title until the owner of the title remits on an unpaid property tax bill. In addition, selling or transferring the property will not affect the tax lien.
3. The Hamilton County Homestead Exemption exists for residential property owners meeting disability or age requirements. Eligible Cincinnati homeowners who do not exceed income levels may qualify for reduced property taxes. Receiving the Homestead Exemption may also protect homeowners from having their homes repossessed due to delinquent property tax liens.
4. Homeowners typically deduct 100 percent of their Cincinnati property tax from their taxable income when they itemize the deduction on their federal tax returns.
5. Although property taxes are established by a tax assessor, Cincinnati home owners can use the Hamilton County property tax calculator to estimate their annual property tax. Estimates are based on the average amount of property taxes placed on similar homes in Cincinnati and Hamilton County.
6. Cincinnati property tax payment schedule: one half of a property tax payment is due February 1 while the second half is due by June 20 of any given year.
How Do Cincinnati Property Taxes Compare to Other Major U.S Cities?
Cincinnati homeowners with properties valued at $150,000 pay approximately $2300 in annual property tax. Properties valued at $200,000 will owe $3500 in taxes at a rate of 1.77 percent. Homes assessed at $300,000 will owe $5300 in annual property tax.
Comparing Cincinnati property tax to other major hubs in the U.S. finds homeowners living in these cities paying the following property taxes annually on $150,000 homes:
Detroit, MI–$5900
Aurora, IL–$5200
Milwaukee, WI–$4200
Philadelphia, PA–$3900
Fort Worth, TX–$3800
Chicago, IL–$3500
Cleveland, OH–$2500
Memphis, TN–$2200
Augusta, ME–$1900
Bismark, ND–$1600
Wichita, KS–$1400
St. Louis, MO–$1400
Denver, CO–$995
Washington, D.C.–$650
Honolulu, HI–$240
Boston, MA–$175
Average property tax across all 50 states is around $2000 for a $150,000 home, with New England and Mid-Atlantic states having the highest property taxes for both urban and rural residences.
What is the Cincinnati Community Reinvestment Area Residential Tax Abatement?
Cincinnati offers a tax abatement program that may help reduce property taxes for people buying a new home or investing in renovating their property. The City of Cincinnati’s Residential Property Tax Abatement allows property owners to pay taxes on the value of the home before improvements were made. This tax abatement service is available for 10 to 15 years and applies to any property assessment that has increased due to renovations or new construction involving the property.
Cincinnati implemented the Residential Property Tax Abatement provision for the purpose of retaining city residents, attracting homeowners, and stimulating revitalization of urban Cincinnati. To qualify for the Tax Abatement, homeowners must have a yearly exterior inspection of the property performed by assessors which is then submitted for approval to the Department of Economic and Community Development. Any violations noted will need corrected before approval of the application.
What Are Cincinnati Property Tax Rates in 2016?
Cincinnati’s property tax will not change in 2016. A tax budget passed by Cincinnati’s City Council has established the tax rate used to pay for city operational expenses at 5.6 mills. This budgets provides Cincinnati with nearly $30 million, a revenue amount collected for the past 15 years. Considered a “rollback” policy regarding property tax rates, this policy has been saving taxpayers over $90 million in residential taxes since 2001. Cincinnati is the only major city in Ohio that adjusts property taxes to ensure a specific amount of revenue is collected each year.
Why So Much Difference in Property Tax Rates Across Major American Cities?
Property tax rates are impacted by several factors that can be construed as desirable or undesirable by potential home buyers who wish to live in a particular environment. Property taxes tend to be higher in cities offering excellent schools. Cincinnati’s Walnut Hills High School, Indian High School and Mariemont High School are examples of public schools consistently ranking in the top 10 Ohio schools. In addition, a city’s property tax rates may be established at above average rates because the city does not rely on tourism as a primary form of revenue. For many homeowners, living in a city constantly teeming with tourists or clogged by new construction may not be an attractive place in which to live and raise a family. Property taxes also pay for maintenance of roads, city parks, libraries, and law enforcement, all things most people consider beneficial and necessary to enjoying their home and the perks of urban life.
2 Point Highlight
Homes assessed at median values of $148,000 will owe property taxes in Hamilton County, Ohio of $2,274 annually.
Eligible Cincinnati homeowners who do not exceed income levels may qualify for reduced property taxes.
