Tax Abatement

The City of Cincinnati's Department of Community Development Tax Abatement Program stimulates revitalization, retains residents, and attracts new homeowners.

The program provides a benefit for residents who improve their homes and encourages home shoppers to buy in the City of Cincinnati.

Any homeowner in the City may be eligible for property tax abatement if they have renovated their home or purchased a newly constructed home. Improvements made to your property resulting in an increased property valuation qualify for tax abatement. The owner of a home that gains value because of remodeling or substantial improvement is not charged the extra property tax for a period of ten years. The home must be either a one, two, or three unit residential structure.

For example, if the owner of a $75,000 home makes $25,000 in improvements, the owner is only responsible for taxes based on the home's original value for a period of ten years. The portion of the tax by which the remodeling increased the value of the structure may be abated up to a maximum $275,000 market value. It should be noted that some types of remodeling do not increase value. Improvements to the house itself, garage, in ground pool, decks and patios qualify for abatement. Roofing, vinyl siding, windows, gutters, and painting may improve the condition of the house, however, may not increase the value of the property. Landscaping, retaining walls, driveways and the like do not qualify.

The City also offers a tax abatement incentive to build a new home within the City of Cincinnati. For example, new construction of structures containing a condominium or a one, two, or three unit residential structure are eligible for a 10-year abatement up to a maximum $275,000 market value. You will pay tax only on the land and the value above $275,000. The following is an example of the estimated tax savings:

Total Investment Eligible for Exemption (fair market value): $275,000
Assessed Value/Taxable Value is 35% of fair market value: $96,250
Assessed Value Multiplied by Tax Rate (.05694): $5,480.4810% Rollback: $548.05
Estimated tax abated for one year: $4,932.43

The Hamilton County Auditor's Office determines the abatement amount based on the type of the improvements. You will receive a letter from the auditor's office after the Auditor's appraisal has been completed.