1031 Exchanges in Ohio: Rules, Taxes, Insurance, and the Long Arc

A Shop 1031 research page. Reviewed 2026-06-03. Every claim sourced; sources collected at the foot of the page.

Ohio is a conforming Midwestern state with active agricultural valuation programs and material classification differential, not a uniform Rust Belt jurisdiction. The distinction matters because the Current Agricultural Use Value (CAUV) program produces favorable valuations for qualifying farmland with material recoupment penalties on conversion, and the state-and-county conveyance fee stack applies at every closing. Ohio conforms to federal §1031 through Ohio Revised Code Title 57 and taxes recognized boot at the graduated rate topping at 3.5 percent (for individuals).

§1. 1031 mechanics in Ohio

The federal floor applies under 26 U.S.C. §1031 and 26 C.F.R. §1.1031(k)-1. ^{1 2}

Ohio conforms to federal §1031 under Ohio Revised Code Title 57, Chapter 5747. Recognized boot is taxed at the Ohio graduated rate topping at 3.5 percent following the 2024 phase-down. ³

Ohio imposes a state conveyance fee under O.R.C. §319.54 at $1.00 per $1,000 of consideration (0.1 percent), and counties may impose an additional county-level conveyance fee under O.R.C. §322.02 of up to $3.00 per $1,000. On a $5,000,000 acquisition in a county imposing the maximum county fee, the combined conveyance fee runs $20,000. ^{4 5}

Ohio imposes no state-level QI registration regime.

Ohio is an attorney-state for real estate closings in most counties; title companies operate alongside attorney involvement in commercial transactions.

§2. Property tax in Ohio

Ohio has an effective property tax rate of approximately 1.57 percent of owner-occupied housing value, materially above the 1.02 percent national median. The structural mechanics are governed by Ohio Revised Code Title 57 and Title 5705. Property is assessed at 35 percent of market value, with rates set by local political subdivisions. House Bill 920 (1976) caps total tax dollars collected on a parcel from voted millage, which produces redistributive effects within taxing districts as values change. ⁶

Current Agricultural Use Value (CAUV) under O.R.C. §5713.30 et seq. provides for valuation of qualifying agricultural land at productive value rather than market value. CAUV-valued land carries material recoupment penalties on conversion to non-agricultural use. For acquisitions involving qualifying farmland, the CAUV election is a structural diligence question. ⁷

Harlow’s note on unit economics. On a $5,000,000 Ohio commercial acquisition, year-one property tax runs roughly $60,000 to $100,000 depending on the specific local jurisdiction. The HB 920 effect compresses voted millage rates as values rise, producing meaningfully different effective rate trajectories than in states without the cap.

§3. Property insurance in Ohio

Ohio property insurance is dominated by severe-thunderstorm, tornado, hail, and winter exposure. The Ohio Department of Insurance regulates carrier conduct. ⁸

Harlow’s note on unit economics. For a $5,000,000 Ohio commercial property, expect property-insurance expense in the range of 0.4 to 0.8 percent of insured value.

§4. Demographic trends

Ohio’s population stood at approximately 11.85 million as of 2025 Census estimates, with roughly flat growth. The Columbus metropolitan area has been the strongest growth corridor in the state since 2015. ^{9 10}

Median household income in Ohio was approximately $69,000 in 2024, slightly below the national median. ¹¹

The major Ohio markets are Columbus (approximately 2.2 million population), Cleveland-Elyria (approximately 2.1 million), Cincinnati (approximately 2.3 million including the Kentucky and Indiana portions), Akron (approximately 700,000), Dayton (approximately 800,000), and Toledo (approximately 600,000). Columbus carries the strongest growth signal across multifamily, industrial, and office; Cleveland and Cincinnati concentrate the deepest balanced markets.

§5. Unique legal and financial considerations

The first is the CAUV program, addressed in §2.

The second is the HB 920 effective-rate compression on voted millage.

The third is the Ohio Cooperative Manufacturing Program (Tax Increment Financing equivalent) and the various local-government tax-abatement programs in Cleveland, Cincinnati, and Columbus, which can affect commercial property economics.

The fourth is the river-corridor environmental considerations (Ohio River, Cuyahoga River, Maumee River) for industrial and adaptive-reuse acquisitions.

§6. Closing summary and the work ahead

The Ohio 1031 exchanger is operating in a market with a clear set of distinguishing features. The federal floor applies; Ohio fully conforms at graduated rates topping at 3.5 percent; the state-and-county conveyance fee stack runs up to $4 per $1,000; the property tax effective rate is materially above the national median with HB 920 compression on voted millage; CAUV provides agricultural productive-value assessment with recoupment penalty on conversion; insurance exposure is dominated by severe weather; Columbus is the strongest growth corridor; tax-abatement programs in major cities affect commercial economics; river-corridor environmental review applies to industrial properties. The jurisdiction-specific factors above are starting-point context. A state-experienced CRE professional will translate them into deal-specific judgment.

This page is the working map. The actual exchange is run by people. An Ohio-licensed real estate attorney, an Ohio-licensed CPA familiar with §1031, a Qualified Intermediary, and a CRE professional who knows this market and these properties. Shop 1031 is the analytics layer that triages which deals deserve your time. The professionals do the work.

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Shop 1031 is an independent analytics platform. We are not a brokerage, a law firm, a tax advisor, a lender, or a Qualified Intermediary. Every 1031 exchange should be reviewed by a state-licensed real estate attorney, a CPA familiar with IRC §1031, and a QI. Brokerage and advisory services, when used, are provided by independently licensed third parties under separate engagement. This page is research, not advice. The Ohio-specific surfaces discussed (CAUV agricultural valuation and recoupment penalty on conversion, HB 920 effective-rate compression on voted millage, state-and-county conveyance fee stack, major-city tax-abatement program eligibility, river-corridor environmental review on industrial property) each carry material risk if mishandled and should be addressed with an Ohio-licensed attorney, an Ohio-licensed CPA, and a Qualified Intermediary before identification, not after.

Federal authority: 26 U.S.C. §1031; 26 C.F.R. §1.1031(k)-1.

Ohio authority: O.R.C. Title 57 (Taxation), Ch. 5747 (income tax), §319.54 (state conveyance fee), §322.02 (county conveyance fee), §5713.30 et seq. (CAUV).

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