Ohio real estate: property tax, closing costs & insurance
Ohio uses a 35% residential assessment ratio combined with the HB920 reduction-factor mechanism, which is designed to keep local tax revenue roughly flat even as assessed values rise — a structural quirk few out-of-state buyers expect.
Property tax in Ohio
The effective rate runs about 1.53% of assessed value. Residential property is assessed at 35% of market value before that rate applies, so the millage number quoted locally is not applied to the full price. Assessed at 35%; HB920 reduction factors.
Transfer tax & closing costs
State $1/$1,000 + county up to $3/$1,000. Recording runs a flat $34. Title insurance is customarily paid by the buyer and seller, split, with a minimum owner’s premium of $175.
Insurance & capital gains
Top 3.5% (2024); municipalities add 1–2.5%.
Worked example: a $350,000 ARV flip in Ohio
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$19,450
- Holding costs, 6 months−$3,460
- Target profit, 15%−$52,500
- Maximum Allowable Offer$223,715
If you’re investing
Ohio’s HB920 reduction factors mean a rising assessed value doesn’t translate one-to-one into a rising tax bill the way it does in most states — don’t assume a simple rate-times-value projection for multi-year holding-cost forecasts.
If this is your home
Municipal income taxes (1–2.5% in many Ohio cities) apply to wages earned in that city regardless of where you live — relevant if you’re weighing a primary-residence purchase against a job located in a different municipality.
Best suited for: Investors comfortable with a somewhat complex property tax mechanism in exchange for lower Midwest entry prices.
Ohio FAQ
What is Ohio’s HB920 and how does it affect property tax?+
House Bill 920 requires most Ohio tax levies to be adjusted down (a "reduction factor") as assessed values rise, so total local revenue from an existing levy stays roughly stable rather than growing automatically with reassessments.
See the exact number for your Ohio property
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Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works