Which Northeast Ohio cities are hit by a cap on property tax deductions?

Which Northeast Ohio cities are hit by a cap on property tax deductions?

CLEVELAND, OH (WOIO) - This weekend the Senate passed its version of tax plan which contains a similar provision to tax bill already passed by the House and it may impact how much you can deduct on your taxes.

Both bills have put a cap on how much of your property taxes you can deduct on your federal tax return.

You used to be able to deduct all of your local and county property taxes but the cap being discussed is at $10,000 in 2016.

Property taxes in Ohio vary not only from county to county, but also from city to city.

The tax on your home is based on what it is worth.

In communities where home values are dropping, cities are collecting fewer taxes. To make up that loss they raise the tax rate.

Because of this, the people who will be impacted by a $10,000 cap are those paying more in tax on a home that might be losing value.

According to the Ohio Department of Taxation, Cuyahoga County has some of the state's highest property taxes.

Here are some of those in the county:

  • Garfield Heights (highest in Northeast Ohio) $4,291 on a $100,000 home
  • South Euclid $4,251 on a $100,000 home
  • Cleveland City-Shaker Heights $4,092 on a $100,000 home
  • University Heights $4,056 on a $100,000 home
  • Shaker Heights $4,007 on a $100,000 home
  • Euclid $3,744 on a $100,000 home
  • Maple Heights $3,665 on a $100,000 home

The average property tax in the state is around $2,500 for a $100,000 home meaning a cap of $10,000 will effect people with homes valued at $400,000 or more.

But in Garfield Heights, because the tax rate is so high, anyone living in $230,000 home and up, will get hit by the cap.

To see what the tax rate is in your community click here.

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