Property Tax Relief Takes Center Stage In 2026
As property values have risen throughout the state, the tax burden that property owners carry has similarly increased. Property tax reform has been an agenda item at the Statehouse as Ohio lawmakers have tried to come up with solutions to help ease the financial impact on property owners throughout the state.
At the end of 2025, a number of bills were passed in an attempt to help limit property tax increases for homeowners, many of which placed inflationary limits on property tax collection.
Ohio Taxpayers To Save $1.7 Billion Over Three Years
Perhaps the most significant piece of the legislation was House Bill (HB) 186, which imposes direct limitations on tax increases in future years. HB 186 institutes a cap on the school district portion of property tax increases, not to exceed a predetermined rate of inflation. A change that is estimated to save Ohio taxpayers nearly $1.7 billion over three years. In addition, HB 186 will also make amendments to the current owner-occupancy tax credit by eliminating the non-business credit as it relates to non-owner-occupied residential property (i.e., rental homes, apartments, and multi-family condominiums).
In addition to the direct tax caps enacted as a result of HB 186, legislators also granted more authority to county budget commissions to curtail excess tax collections.
Inside Millage Rates Adjusted
HB 335 provides inflation-related safeguards as it relates to inside millage tax collection. Specifically, county budget commissions will be required to adjust the inside millage rates so that the tax collected does not exceed inflation from the three prior years. This adjustment must be made during each county’s respective reappraisal or update year.
County Commissions Empowered To Adjust Collections
Additionally, HB309 will empower County budget commissions to adjust tax collections downward as it relates to levies that do not require voter approval. The caveat to this authority is that millages cannot be reduced below the 20-mill floor, nor can they fall below the tax collected in the prior year unless certain conditions are met.
Actions Taken To Reduce Overall Property Tax Burden
Finally, the General Assembly also enacted additional laws that adjust how the 20-mill floor is calculated (HB 129) and provide some more clarity regarding the Ohio Department of Taxation’s review and certification of values set by the county auditors (HB 124). Both of these bills are focused on the common theme of helping to reduce the overall property tax burden.
Each of these laws became effective March 18, 2026 (with the exception of HB 186, which was effective in December 2025), which means that the impact may be felt immediately in some situations. While this legislation is a move in the right direction toward property tax reform in Ohio, the General Assembly has indicated it will continue to evaluate additional options and ideas to further deliver property tax relief to taxpayers.
For more information about your Ohio property taxes, reach out to the real estate services team or the dedicated state and local tax team at GBQ.
