Real Estate Tax Implications in Columbus: The Complete Guide for Homeowners & Investors
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Closing on a home in Columbus, Ohio, comes with more than just signing papers. Understanding the tax implications is crucial for your net proceeds. From the Franklin County conveyance fee and property tax prorations to federal capital gains, Ohio state tax, and school district income tax, every detail matters. Local exemptions like the Homestead credit or Owner-Occupancy credit can also impact your payoff.
Whether you’re selling a primary residence in Dublin, a rental in Westerville, or inherited property in Worthington, this guide will break down everything you need to know. We’ll cover taxable vs. non-taxable items, local conveyance fees, prorations, credits, document requirements, and how to avoid last-minute deal problems.
Key Takeaways
- Columbus-area counties have conveyance fees — state $1 per $1,000 plus county permissive up to $3 per $1,000.
- Federal capital gains exclusion applies up to $250,000/$500,000 on your primary residence.
- Ohio taxes capital gains as ordinary income, and local school districts may levy SDIT.
- Property tax credits/exemptions (Homestead, Owner-Occupancy 2.5%, Non-Business) affect your closing prorations.
- CAUV recoupment may apply if agricultural land changes use.
Why Columbus Real Estate Taxes Can Be Tricky
Columbus taxes are anchored in Ohio law but managed locally (Franklin, Delaware, Licking, Fairfield counties). The same home price can incur different conveyance fees depending on county. Add SDIT, federal capital gains, rental depreciation recapture, and special credits, and the process becomes complicated. The solution: identify all applicable taxes, confirm credits/exemptions, and plan pricing for your net proceeds.
Taxes & Fees You May Encounter When Selling in Columbus
| Item | Who Charges It | When It Applies | How It’s Calculated | Notes |
|---|---|---|---|---|
| Conveyance Fee (Transfer Tax) | State & County | On most property transfers | State: $1 per $1,000; County: up to $3 per $1,000 | File DTE Form 100 with the county auditor. Total varies by county. |
| Property Tax Proration | County Treasurer | At closing | Daily pro-rata share for current half-year | Taxes billed semiannually; prorations repay buyer for pre-closing accruals. |
| Federal Capital Gains | IRS | On net gain | Gain = Sale price – Adjusted basis – Selling costs | Primary home exclusion up to $250k/$500k; rentals trigger depreciation recapture. |
| Ohio State Income Tax | Ohio Dept. of Taxation | On Ohio taxable income | Capital gains taxed as ordinary income | May affect SDIT calculations. |
| School District Income Tax | Local SDIT (if applicable) | Depends on district rules | Traditional base includes capital gains; earned-income base typically excludes | Check local school district (Columbus City, Westerville, Dublin, Worthington, Hilliard). |
| Homestead Exemption | County Auditor | 65+/disabled (income-based) | Reduces taxable value | Affects prorations, not federal gains. |
| Owner-Occupancy (2.5%) & Non-Business Credits | County/ODT | Primary residence | Reduces certain levies | Affects escrow/prorations. |
| CAUV Recoupment | County Auditor | If land use changes | Difference between CAUV & market value | Applies to agricultural land conversions. |
Columbus Real Property Conveyance Fee Explained
State fee: $1 per $1,000 of sale price. County permissive fee up to $3 per $1,000. Example: a $300,000 home in Franklin County with full permissive fee ≈ $1,200 total. Form: DTE Form 100 at auditor’s office.
| County | State Fee | County (Permissive) Fee | Total per $1,000 | Notes |
|---|---|---|---|---|
| Franklin | $1.00 | Up to $3.00 | $1–$4 | Confirm total with auditor at sale. |
| Delaware | $1.00 | Varies | $1–$4 | Check auditor for county portion. |
| Licking | $1.00 | Varies | $1–$4 | County-specific rate; confirm before closing. |
| Fairfield | $1.00 | Varies | $1–$4 | Auditor verification recommended. |
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Capital Gains: Primary Residence vs Rentals in Columbus
Primary Residence
- 2-of-5-year use test for exclusion up to $250k/$500k
- One exclusion every 2 years; partial exclusions for job change, health, unforeseen circumstances
Rental Property
- Depreciation recapture taxed up to 25% federally
- 1031 Exchange can defer gains if reinvesting into qualifying property
- Ohio treats gains as ordinary income; SDIT may apply
SDIT & State Tax Considerations
Check your Columbus-area school district: Columbus City, Westerville, Dublin, Worthington, Hilliard. Traditional-base SDIT may include capital gains; earned-income-base SDIT typically excludes them. Use your actual taxable income for accurate calculation.
Property Tax Timing & Credits at Closing
Taxes billed semiannually; prorated at closing. Homestead, Owner-Occupancy, Non-Business credits reduce effective bill, impacting seller prorations but not federal gains.
Special Situations
- Inherited Property: stepped-up basis reduces gain
- Divorce: allocation affects individual gain calculation
- Foreign Sellers: FIRPTA may apply
- CAUV Land: recoupment triggers if use changes
Documents Checklist
- DTE Form 100
- Payoff/Lien letters
- Property tax status & credits confirmation
- Settlement statement & closing documents
- Rental records (if applicable)
Net Proceeds Strategy
Reverse-engineer your net target: subtract mortgage payoff, liens, conveyance fees, prorated taxes, title/closing, repairs/credits from your target proceeds to set list price.
Local Resources
- Franklin County Auditor
- Franklin County Treasurer
- Delaware County Treasurer
- Licking County Treasurer
- Ohio Department of Taxation
- IRS – Capital Gains & Depreciation
- Check your SDIT via your school district (Columbus City, Westerville, Dublin, Worthington, Hilliard).
Step-By-Step Columbus Sale Tax Checklist
- Confirm property type: primary, rental, inherited, farm (CAUV)
- Check property tax status & liens
- Verify credits/exemptions
- Estimate conveyance fee
- Calculate federal & state capital gains, SDIT
- Prepare closing docs: payoff letters, DTE Form 100, settlement statement
- Negotiate repairs/credits
- Verify prorations for taxes & assessments
- Confirm buyer financing & closing timeline
- Record deed with full compliance for taxes & fees
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Final Thoughts
Understanding Columbus conveyance fees, prorations, credits, federal/state capital gains, and SDIT ensures a smooth, predictable sale. Use this guide, checklists, and local resources to maximize net proceeds and avoid surprises. Proven House Buyers can handle the details and buy your house for cash anywhere in Columbus and surrounding suburbs.