Ohio death taxes today, and why an inherited home still needs a value

Begin with the taxes that do not apply. For deaths in 2013 or later, Ohio has no estate tax: R.C. 5731.02 confines the old tax to people who died before January 1, 2013, and the Ohio Department of Taxation has stopped requiring the old tax release and "inheritance tax waiver" forms before property is transferred. There is no Ohio inheritance tax; the department's history of the tax explains that the 1968 estate tax took the place of a former state inheritance tax.

The federal government does not tax inheritances either. Its tax is the estate tax, which falls on the estate and which the executor pays. Executors electing portability must file a return. Otherwise a return becomes necessary only when the gross estate, with certain lifetime taxable gifts added back, tops the year's line: $13,990,000 for 2025 deaths, and $15,000,000 now, specifically for a U.S. citizen or resident who dies in 2026. Heirs' own income tax returns are a different matter: an inheritance generally stays out of the heir's income, though rent or other income the house later earns is taxable (IRS Publication 525).

Even so, Ohio families still need a dated value in situations like these:

• An inventory filed in probate. Ohio inventories report estate property at its value on the date of death (R.C. 2115.02). See probate appraisals for who may value the real estate.
• Federal basis. For federal income tax, the IRS generally sets an heir's starting basis at the property's fair market value on the day the owner died; a later sale above that basis produces a taxable gain (IRS). The IRS step-up appraisals page goes further into basis.
• A surviving spouse who wants the house. A spouse may elect to take the decedent's interest in the home toward the intestate share and support allowance, with that interest counted at the appraised value less the liens attributable to it (R.C. 2106.10). If the will does not specifically leave the home to someone, the spouse may also buy it for the value the appraisers fixed (R.C. 2106.16).
• Heirs settling among themselves. One heir buying out the rest, or a sale everyone agrees on.
• A home that skips probate. An owner can use a transfer on death designation affidavit to name who receives the property (R.C. 5302.22). For the beneficiary, federal basis generally still begins with the value at death.

Three things to decide ahead of the inspection

Which date?

Most estate assignments use the date of death. When an estate tax return is filed, the executor may elect the alternate valuation date in 26 U.S.C. 2032 instead; that choice belongs to the tax side, not the appraiser. Get the date from your attorney or tax adviser before the scope is fixed.

How did the house stand on that date?

By the time an appraiser is called, an inherited home may already have been emptied, repaired or updated. The report still has to describe it as it stood on the effective date, so dated photos, listing details and repair invoices are worth tracking down.

Who is the report written for?

An executor or administrator, the estate's lawyer, a trustee, heirs negotiating a buyout and a tax adviser may each need something different. List every intended user at the outset.

The county auditor's value is a tax number

Every Ohio county auditor serves as assessor for the county's real estate and must revalue every parcel no less often than once every six years (R.C. 5713.01). The tax commissioner orders a countywide reappraisal every six years and may order a reassessment, usually called the update, in the third year after it (R.C. 5715.33). The tax lien attaches each January 1 (R.C. 323.11). The auditor's figure therefore comes out of a periodic valuation of every parcel, not an inspection of one house on the day its owner died.

Ohio law lets an executor or administrator accept the auditor's value for real estate in place of appointing an appraiser (R.C. 2115.06). Whether that figure is good enough for a particular estate, or a private appraisal is worth the cost, is for the fiduciary and the estate's lawyer to decide.

Estate offices in Butler, Montgomery and Warren counties

• City of Hamilton (Butler County). The Butler County Probate Court, the probate division of the Butler County Court of Common Pleas, oversees the administration of estates. Tax values come from the Butler County Auditor's Office; recorded deeds from the Butler County Recorder.
• Dayton (Montgomery County). Montgomery County's probate court, the probate division of its court of common pleas, sits in Dayton, the county seat. Tax values come from the county auditor.
• Mason (Warren County). The Warren County Probate/Juvenile Court serves as the probate division of the Warren County Court of Common Pleas. Tax values come from the Warren County Auditor, and the Warren County Recorder indexes deeds online.

A will goes to probate in the county where the person was domiciled at death (R.C. 2107.11), which may differ from the county where the house stands, and separate appraisers may be appointed for property in other counties (R.C. 2115.06).

Collect these before calling

The stages between request and report

1. Opening call. Tell us where the house is, which day it must be valued as of, which people will read the report and when you need it. Before any work, we send the scope, fee and delivery estimate for your approval.
2. Documenting the home. Arrange entry and share whatever records show its condition on the effective date and what has changed since.
3. Researching that period. The appraiser compares sales and market conditions from around the effective date and shows in the report how they lead to the opinion of value.
4. Checking the report. Confirm the effective date, the use and users it names, and its assumptions and limiting conditions; flag any factual mistake about the property.

Fee, schedule and the inventory's three-month clock

Ask for a written scope, fee and delivery estimate for your property, intended use and deadline. A past effective date and research into the house's earlier condition can both affect the scope and the schedule. Ohio inventories fall due three months after the fiduciary's appointment unless the court allows longer, so mention the due date on the first call.

Ready to talk about the estate's home?

Tell us where the house is, who will rely on the report and which date your attorney or adviser wants valued. Call 937-637-2747 or use the contact page.

The Ohio sections on this page were written with AI assistance for Eagle Home Appraisal Ohio.