Montgomery County, home to Dayton and 530k Ohioans, operates under Ohio's three-layer property tax system: county + municipality/township + school district. Each layer adds its own millage. Ohio's average effective rates run 1.5-2.5% — high by national standards but stabilized over time by House Bill 920's automatic reduction factors that prevent voted millages from rising with reassessment.
How the bill is built
Ohio calculates property tax in five steps. Step 1: Market Value. Each county auditor reappraises every property every six years (with an interim "update" at year three). Step 2: Assessed Value (AV). Ohio's residential assessment ratio is fixed at 35% of market value. Step 3: Apply HB 920 reduction factors. Each voted levy gets a reduction factor that prevents the levy from automatically generating more revenue when home values rise — meaning voted millages are reduced over time as values appreciate. The "stated" mill rate and the "effective" mill rate diverge significantly. Step 4: Calculate gross tax. Gross tax = AV × effective millage / 1,000. Step 5: Apply credits. Owner-occupied residential properties receive both the 2.5% Owner-Occupancy Rollback and the 10% Non-Business Credit — combining for an automatic ~12.5% reduction off the gross bill.
2026 Montgomery County rate breakdown (effective mills per $1,000 of AV (post HB 920 reduction factors), Dayton district)
| Taxing entity | Rate |
|---|---|
| Dayton Public Schools (~58 effective mills) | 58.0000 |
| City of Dayton | 9.0000 |
| Montgomery County | 7.0000 |
| Library + Metroparks + Sinclair CC + misc. | 7.0000 |
| Combined total | 81.0000 |
As of April 26, 2026 · From Montgomery County Auditor.
Rollback, credits, and exemptions for 2026
Ohio's homeowner tax relief works through automatic credits applied to every owner-occupied residential bill, plus optional Homestead Exemptions for income-qualified seniors and disabled veterans.
2.5% Owner-Occupancy Rollback
Every owner-occupied residential property automatically receives a 2.5% reduction off the gross tax bill. No annual filing is required once the property is designated as the owner's primary residence — the reduction continues automatically. The rollback was originally created by the Ohio General Assembly in 1971 as a substitute for the State Sales Tax on residential utilities. Investment properties and rental properties do NOT qualify.
10% Non-Business Credit (Class I)
All Class I (residential and agricultural) properties receive a 10% reduction off the gross tax bill — an additional automatic credit on top of the 2.5% rollback. Combined with the rollback, owner-occupied homeowners receive an automatic ~12.5% reduction off every bill. Like the rollback, no annual filing is required. The non-business credit was created in 1971 as part of Ohio's broader property tax reform that introduced the 35% assessment ratio.
Senior Homestead Exemption (65+)
Seniors 65+ with an Ohio Adjusted Gross Income (OAGI) under $40,000 (2026 limit, indexed annually) qualify for a Homestead Exemption that reduces the property's market value by $25,000 before AV calculation. This produces approximately $560-700/year in additional savings on a typical bill. File Form DTE 105A (Homestead Exemption Application) with your county auditor by December 31. The income test is based on OAGI from the prior tax year.
Disabled Veteran Homestead Exemption
Disabled veterans with a 100% service-connected disability rating receive an enhanced Homestead Exemption that reduces market value by $50,000 — twice the standard senior amount. Critically, the disabled-veteran version has no income limit. Surviving spouses retain the exemption. File Form DTE 105I with your county auditor along with VA documentation of disability rating.
Appealing your assessment
Ohio's appeal process runs through the County Board of Revision (BOR). Homeowners file DTE Form 1 (Complaint Against the Valuation of Real Property) with the Montgomery County Auditor between January 1 and March 31 each year. The BOR holds hearings between April and December — homeowners can present comparable sales, recent appraisals, or independent appraiser testimony. Decisions can be appealed to the Ohio Board of Tax Appeals (BTA) within 30 days. Reassessment in Ohio occurs on a six-year cycle with a three-year interim "update" — appeal volume spikes during reappraisal years.