Four Major Property Tax Reforms Headed to the Governor’s Desk

By Anastasia Kotkovskaya, Manager, Advocacy and Research

Four Major Property Tax Reforms Saving Ohioans $2.4 Billion Headed to the Governor’s Desk: What Homeowners Can Expect in 2026

After a year of advocacy, member engagement, and multiple rounds of public committee testimony from Ohio REALTORS^®, the Ohio House and Senate have officially approved a sweeping package of property tax reforms. All four bills are now headed to Governor DeWine, marking one of the most significant overhauls of Ohio’s property tax system in the state’s history and a major victory for our work this General Assembly!

Earlier in this General Assembly, several key property tax reforms were vetoed by the Governor after being included in the state operating budget. Ohio REALTORS^® strongly opposed those vetoes, launched a statewide Call for Action, and continued pressing lawmakers to keep these issues alive. The legislature ultimately overrode one of those vetoes, which banned the future use of replacement and emergency levies, which is an important step toward stopping unvoted tax spikes and improving transparency for homeowners. That victory helped keep momentum moving and set the stage for this new legislative package, which reintroduces and strengthens many of the provisions that were previously blocked.

Below are the four bills that passed the legislature this week. Together, they tackle the automatic tax increases and structural flaws that have driven sharp spikes in tax bills across the state and will provide approximately $2.4 billion in property tax relief over the next 3 years. Here is what is included in the package and what it means for homeowners: 

HB 186: Limiting school tax increases tied to rising values

78% of school districts sit on the 20-mill floor, which causes taxes to rise automatically with property values. HB 186 will cap that growth at inflation and refund homeowners for excess payments from the past two years.

The Legislative Services Commission estimates $1.7 billion in savings over three years, roughly $128 per household next year. To help districts transition, lawmakers included a temporary funding glide path by canceling the 2026 expanded sales tax holiday and sending $360 million to schools next year, plus $105 million the following year.

A last-minute amendment was added in the Senate Local Government Committee that makes significant changes to how property tax rollback credits work. The owner-occupied rollback will gradually increase from 2.5% to 15.38% over the next several years, while the 10 percent rollback on nonbusiness residential property, including small rental properties, will be phased out entirely. The full rollback for agricultural property will remain in place. While this change will increase property tax savings to owner-occupied dwellings, it has the potential to increase property taxes on rental units.

Despite this amendment, this legislation is a major structural change that will protect a large majority of the state against skyrocketing tax increases moving forward.

HB 335: Slowing automatic tax increases

Inside millage has long been a major source of unvoted tax growth because it rises automatically when property values go up. HB 335 will cap that growth at the rate of inflation.

State analysts project reductions of $135 million in 2026, growing to $378 million by 2028. This will bring meaningful relief and more predictable tax bills for property owners.

HB 129: Fixing the 20-mill floor calculation

Emergency and substitute levies currently do not count toward the 20-mill floor. HB 129 corrects that by including these levies in the calculation, which would move roughly 180 districts off the floor.

This restores stronger HB 920 protections to residents living in these districts and will prevent unrestrained tax growth for many homeowners.

HB 309: Reducing excessive levy collections

HB 309 gives county budget commissions new authority to scale back levies that collect more revenue than a jurisdiction reasonably needs. A levy can be reduced if cash balances or service levels show that the revenue is unnecessary or excessive.

Reductions cannot be made within the first year of a levy.

What happens now?

All four bills are on their way to Governor DeWine. If signed quickly, they can still be implemented for 2026 tax bills. This package reflects years of advocacy, testimony, and engagement by our members, and it represents a major win for homeowners seeking transparency, stability, and relief. Ohio REALTORS^® will continue tracking the final steps and will keep members informed as these reforms move to becoming law.

 

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