Ohio has just passed one of the most significant property tax changes in decades, and it has massive implications for renters, landlords, and homeowners—especially here in Dayton. If you’re renting right now, this new law could dramatically change your financial future, and it’s important to understand exactly what it means.
This guide breaks down the new 15.38% homeowner property tax credit, why landlords are losing their long-standing tax discount, and how these changes will almost certainly cause rents to rise across Dayton. Most importantly, we’ll explain why this shift makes owning a home—even a modest, affordable Dayton home—one of the most financially powerful decisions you can make for yourself and your family.
What Exactly Did Ohio Just Pass?
As part of a major legislative package in late 2024, Ohio lawmakers approved an overhaul of the state’s property tax system. According to reports from the Ohio Senate and state tax officials, the new plan:
- Expands the homeowner (owner-occupancy) tax credit from 2.5% to 15.38%
- Eliminates the 10% non-business credit for landlords and rental properties
- Shifts roughly $400 million per year in tax savings from landlords to homeowners
- Reduces homeowner tax bills statewide while increasing landlord tax bills
In simple terms:
Homeowners win. Landlords lose. Renters feel the pain through higher rents.
This is not speculation—it’s exactly what the financial models show. And it’s already on its way to the Governor’s desk for final approval.
Why This Change Is a Huge Deal for Dayton Renters
If you’re renting in Dayton, this tax change affects you directly, even though the bill isn’t aimed at renters. Because landlords lose their tax credit, their property taxes will go up—many by hundreds of dollars per year.
And when a landlord’s costs go up, it almost always translates into higher rent.
Meanwhile, homeowners now get a brand-new tax relief benefit—one that makes owning a home cheaper in the long run than renting.
This is the first time in a long time that state policy is heavily tipping the scales toward homeownership. If you have ever thought about buying a home in Dayton, this is the moment to take that step seriously.
How the New 15.38% Tax Credit Works for Dayton Homeowners
Let’s break this down clearly. Under the old system, homeowners received only a small 2.5% tax credit. That credit still exists, but the state is now adding:
+2.25% each year for four years, totaling a 15.38% homeowner tax credit.
That means:
- Lower annual property tax bills
- More predictable costs
- More affordable long-term homeownership
Most homeowners don’t realize it yet, because the news hasn’t been widely publicized. But this is one of the most homeowner-friendly changes Ohio has ever made.
Now compare that to landlords…
Landlords Lose the 10% Non-Business Credit
For years, landlords paid less in property taxes because Ohio gave them a 10% “non-business” tax credit. That credit is now being fully eliminated.
That means landlords will see their tax bills:
- Increase by 10%
- Increase again due to county reassessments
- Increase again due to Dayton’s own local tax decisions
And if you’re renting from one of those landlords, you can safely assume those increases will be passed on to tenants.
This is why one of the strongest arguments for homeownership right now is simple:
Your rent will likely go up. Your homeownership costs will likely go down.
Let’s Put Real Numbers to This
Imagine you live in a rental home in Dayton with a tax value of $100,000.
If your landlord pays the taxes:
Their taxes could rise by several hundred dollars per year.
For a landlord, that’s a line-item expense. For renters, it becomes:
Higher rent.
If you own the same home:
The new 15.38% credit reduces your tax bill—permanently.
That means:
- Your monthly payment becomes more stable
- You benefit from new tax laws instead of paying for them indirectly
- You get rewarded for being an owner
The difference in long-term cost between renting and owning has never been clearer.
Property Taxes Are Shifting. Dayton Renters Need to Know This.
Between Ohio’s changes, Montgomery County reassessments, and annual increases, we are entering a period where:
- Renters will be hit the hardest because they pay rising rents caused by landlord tax increases
- Landlords will see higher expenses and will raise rents to protect cash flow
- Homeowners will enjoy the biggest tax relief Ohio has ever offered
For years, renting and owning felt relatively close in price. That era is ending. The new system rewards people who own and penalizes those who don’t.
This is why we are so serious when we tell Dayton renters:
For the first time in decades, the tax system is designed to help you own—not rent.
Dayton’s Homeownership Advantage Just Got Even Bigger
On top of Ohio’s new 15.38% tax credit, Dayton renters have access to several other powerful tools that make buying a home even more affordable.
1. Dayton’s $10,000 Homebuyer Grant
The City of Dayton currently offers a $10,000 down payment grant for qualifying homebuyers purchasing inside city limits. This is free money that does not need to be repaid.
Combined with the new state tax credit, this creates one of the most attractive homeownership climates in Ohio history.
2. Down payment assistance built into the purchase
Because Dayton Proper owns the homes you rent, we can “bake in” down payment support directly into your purchase agreement. This is not a rent-to-own or land contract. It’s a standard purchase with assistance built into the closing.
3. Texana Bank’s grant-tracking team
Our lending partner monitors every available program so you don’t have to. They keep track of:
- Dayton city grants
- State down payment programs
- Federal buyer assistance
- New and temporary programs
You won’t miss out on dollars that could help you become a homeowner sooner.
Why This Tax Change Makes Homeownership the Financial Winner
For decades, renting and owning were close in cost, especially in Dayton. But with these new tax changes, the gap widens dramatically.
If you rent:
- Your landlord’s tax bill goes up
- Your rent increases to cover their rising costs
- You get no tax benefits
- You build no equity
If you own:
- Your tax bill goes down
- Your costs become more stable
- You keep the benefit of appreciation and equity
- Your monthly housing dollars build long-term wealth
It’s the clearest financial comparison we’ve seen in years.
Why Dayton Renters Should Pay Attention Now
These tax changes are not temporary. They represent a long-term shift in how Ohio treats housing, wealth, stability, and homeownership. That means what you do in the next 6–18 months matters.
Dayton renters are about to feel:
- Higher rents as landlords lose their credit
- More competition for affordable homes
- Limited inventory of good rental options
- Greater financial pressure as housing costs rise
Dayton homeowners are about to feel:
- Lower tax bills
- More stability
- Increased home values
- More equity growth
The difference between those two paths has never been sharper.
If You Want to Stay in Dayton Long-Term, This Is Your Moment
Homeownership is not just about owning a building. It is about:
- Stability
- Pride in where you live
- Building roots
- Protecting your family from rising rents
- Building equity instead of losing money to rent
- Passing something down to your children
And now—thanks to Ohio’s new tax credit—it is also about getting a financial advantage that renters simply will not receive.
How Our Rent-Today, Buy-When-You’re-Ready Program Works
The process is simple and designed for Dayton families who want a fair, transparent path into homeownership:
1. You rent the home normally
No inflated rent. No rent-to-own tricks. No contract traps.
2. Whenever you’re ready, you can explore buying it
You don’t have to move or change schools. You transition from renting to owning the same home.
3. You begin with a soft credit check (no score impact)
Lance Tearnan from Texana Bank reviews your credit and builds a plan to get you mortgage-ready.
4. You get matched to all available grants
This includes Dayton’s $10,000 grant, state programs, federal assistance, and our own help.
5. We help structure the purchase in a way that works
Because we own the homes, we have flexibility traditional sellers don’t.
Ready to See Where You Stand?
The first step is simple and has no impact on your credit score: a soft pull from our lending partner. This helps you see exactly what’s possible—and you may be surprised by how close you already are.
Get Your Free Soft Credit Check
Explore Homes Available Through Dayton Proper
If you’re ready to stop paying rising rents and start building a more stable future, take a look at the homes available today.