Ohio property tax changes signed into law

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(The Center Square) – Property taxpayers throughout Ohio could get some relief in 2026.

Gov. Mike DeWine signed a series of bills into law that impact everything from a school district’s minimum tax rate to limits on potential tax increases and giving county governments more control over all property tax hikes. 

The Buckeye Institute, a Columbus-based policy group, called the new laws the most significant property tax reform move in half a century.

“The Buckeye Institute applauds the General Assembly and Governor DeWine for giving Ohio taxpayers the biggest property tax reform in half a century. The General Assembly should be commended for passing this package of reforms, which limits automatic tax increases without voter approval and gives county budget commissions tools to reduce property taxes if a levy collects more taxes than voters approved,” Greg Lawson, research fellow at The Buckeye Institute, said. “These Buckeye Institute-recommended policies will help homeowners struggling with skyrocketing property tax bills.”

House Bill 335 limits how much local governments can raise revenue within existing millage rates, capping it at the rate of inflation. That, according to supporters, will slow the rate of automatic tax increases.

House Bill 309 allows county budget commissions to decide how much money a specific entity needs, giving it the power to reduce the amount of previously voter-approved levies.

The new laws also change the formula for the guaranteed minimum tax rate for schools, which could stop some future tax increases. DeWine also signed a bill that gives more power to county auditors to determine property valuations.

While the new laws are expected to lead to more predictable tax bills and possibly some tax credits, they also mean local government entities could lose future revenues.

House Republicans, who pushed the bills through the Legislature, said the changes will lead to $3 billion in savings for property owners.

“The passage of House Bills 124, 129, 309, 186, and 335 is about getting back to the basics Ohio families expect – responsible government, safer communities, and a stronger economy. These commonsense measures cut red tape, protect taxpayers and reinforce the values of accountability, local control, and the rule of law," Rep. Brian Lorenz, R-Powell, said.