Ohio property tax reform passed in late 2025 through House Bills 186, 335, 129, 309, and 124. For Columbus-area homeowners, these changes arrive just as Franklin County completes its 2026 triennial value update. Meanwhile, tentative residential values rose about 10% on average, and the updated values will shape property tax bills beginning in 2027.
If you own a home, rental, or investment property in Franklin County, a higher appraised value is only part of the story. In fact, Ohio’s levy rules, the new state credits and caps, and any local voted levies all affect your final bill. Boxelder’s Columbus tax team can help with the tax-planning side of those changes.
At a Glance
- Ohio enacted five major property tax bills in late 2025: HB 186, HB 335, HB 129, HB 309, and HB 124.
- According to the Ohio House, the combined package delivers more than $3 billion in property tax relief.
- HB 186 creates an inflation-cap credit for certain school-district property taxes.
- Franklin County’s 2026 tentative residential values increased about 10% on average.
- After state review, the county certifies final values, and those values affect 2027 bills.
- To challenge a value after the update cycle, owners can file with the Franklin County Board of Revision.
- Qualifying seniors, disabled homeowners, certain surviving spouses, and qualifying disabled veterans can apply for the Ohio homestead exemption.
- Meanwhile, the campaign to abolish Ohio property taxes did not reach the 2026 ballot and is targeting a later election.
What Is Ohio Property Tax Reform?
Ohio property tax reform refers to a package of bills Governor DeWine signed in late 2025. Together, these bills change how several parts of the state’s property tax system respond to rising values. Specifically, the package includes House Bill 186, House Bill 335, House Bill 129, House Bill 309, and House Bill 124.
The Ohio House estimates the package will provide more than $3 billion in combined relief over the coming years. However, the effect will vary by county, school district, property type, and the levies that apply to a particular parcel.
Property tax in Ohio can feel confusing because a higher appraised value does not raise every levy by the same percentage. Many levies collect a fixed dollar amount, so the effective tax rate adjusts when values change. For that reason, the new laws focus on the parts of the system where rising values could still push collections higher.
What Does Ohio House Bill 186 Do?
For many homeowners, House Bill 186 is the centerpiece of the 2026 Ohio property tax relief package. In districts on the 20-mill floor, it limits growth in certain school-district property tax collections to the rate of inflation. When collections would otherwise exceed that cap, property owners receive a credit for the difference.
According to the Ohio House, HB 186 will save property owners nearly $1.7 billion over three years. The inflation-cap relief begins in 2026, and the credit appears directly on your property tax bill.
In addition, HB 186 expands the owner-occupancy credit starting in January 2027. The Ohio House values that expansion at $800 million in relief over four years.
So what is the “20-mill floor”? In simple terms, it is a feature of Ohio school funding law. Some school districts reached a minimum effective millage level where rising property values could translate more directly into higher collections. HB 186, therefore, aims to limit that automatic growth.
What Do the Other Four Property Tax Bills Change?
HB 335: Inside Millage Cap
HB 335 limits how much unvoted “inside millage” collections can grow during a reappraisal or triennial update. Specifically, it ties the cap to inflation over the preceding three years. The Ohio House estimates this measure will provide hundreds of millions of dollars in relief beginning in 2027.
HB 129: Changes to the 20-Mill Floor
HB 129 changes which school levies count toward the 20-mill floor, including certain renewed emergency and substitute levies. As a result, the Ohio House expects many districts to move off the floor over several years. Consequently, fewer districts will see rising values automatically push collections higher.
HB 309 and HB 124
HB 309 gives county budget commissions more authority to reduce levies they find excessive, within statutory limits. Meanwhile, HB 124 changes how the Ohio Department of Taxation reviews county property values. It directs the department to use county auditor sales data from arm’s-length transactions over the prior three years, and it allows appeals to the Board of Tax Appeals.
Why Did Franklin County Property Values Go Up in 2026?
Franklin County is in a 2026 triennial update year. In June 2026, the Franklin County Auditor’s Office released tentative values covering more than 440,000 parcels.
On average, tentative residential values increased about 10%. By comparison, commercial values rose about 4% and industrial values about 13%, according to the auditor. Keep in mind that these are countywide averages, not a prediction for any individual property.
After the state reviews the numbers, the county certifies final values. Your 2027 tax bill will then reflect the updated value.
Rather than relying on countywide averages, check the auditor’s “Know Your Home Value” tools and property tax estimator. For example, a property’s location, recent comparable sales, school district, and levy mix can produce a very different result from the county average.
Will My Columbus Property Tax Bill Go Up?
A higher property value does not mean your tax bill will rise by the same percentage. Ohio’s system includes fixed-sum levies whose effective rates adjust when values rise. On top of that, the 2025 reform package adds new credits and caps.
So what can still increase a bill? New voted levies, renewals, a change in the mix of levies on your property, and changes to credits can all matter. That is why the same percentage increase in value can produce different tax outcomes in different school districts or municipalities.
For Columbus and Franklin County homeowners, the 2026 updated values first show up on 2027 bills. Ohio real property tax is generally due in two installments, and Franklin County sets its specific due dates each year. For the current schedule, see the Franklin County Treasurer’s collection dates.
What Changes for Landlords and Rental Property?
For rental-property owners, the reform brings mixed results. HB 186 phases out the non-business credit that historically reduced taxes on residential property that is not owner-occupied, including rental homes and apartments.
As a result, landlords may see higher carrying costs even while other parts of the reform slow growth elsewhere. A practical first step is to update cash-flow projections before you set budgets or decide whether to sell or hold.
If you are considering a sale, also review capital gains tax on a home sale in Ohio. For rental reporting and other individual tax issues, see individual tax preparation.
Ohio Homestead Exemption: Who Qualifies in 2026?
The Ohio homestead exemption reduces taxable value for qualifying homeowners who own and occupy the property as their principal residence.
Specifically, eligible groups include homeowners age 65 or older, homeowners who are totally and permanently disabled, certain surviving spouses, and qualifying disabled veterans or their surviving spouses. In addition, the Ohio Department of Taxation applies an income test to the general senior and disability exemption.
For tax years 2025 and 2026, the state lists an income limit of $40,000 of Ohio modified adjusted gross income. Because the exemption amount adjusts for inflation each year, check the Ohio Department of Taxation for the current figure.
To apply, file with the county auditor by December 31 of the year you want the exemption to start.
Is Ohio Eliminating Property Taxes?
No property tax elimination amendment is on Ohio’s 2026 ballot. In June 2026, the Committee to Abolish Ohio Property Taxes ended its effort to qualify a measure for 2026 and shifted its target to a later election.
If it passed, the proposed amendment would eliminate property taxes and force state and local governments to replace a large source of funding for schools and local services. Supporters argue that homeowners need a more predictable system and relief from rising bills. On the other side, opponents, including groups that represent public services, focus on the funding gap that would need replacing.
Boxelder, however, does not take a position on the proposal. For 2026 homeowners, current property taxes remain in place.
How Do I Challenge My Franklin County Property Value?
The auditor’s informal review period ran during the 2026 update process. Now, the formal route is a Board of Revision complaint:
- Check the final value the Franklin County Auditor’s Office lists for your property.
- Compare recent arm’s-length sales of similar properties.
- Gather documents that support a different market value.
- File a Board of Revision complaint by the deadline.
For the 2026 value update, the Franklin County Auditor lists March 31, 2027 as the Board of Revision complaint deadline.
Frequently Asked Questions
What is Ohio property tax reform?
It is a five-bill package enacted in late 2025 that changes how school levies, inside millage, property value reviews, and certain tax credits work. Most effects begin showing up on 2026 and 2027 tax bills.
What does Ohio House Bill 186 do?
HB 186 creates an inflation-cap credit for certain school-district property taxes in districts on the 20-mill floor. It also expands the owner-occupancy credit beginning in 2027.
When will new Franklin County property values affect my tax bill?
The 2026 triennial update affects property tax bills beginning in 2027.
Is Ohio getting rid of property taxes?
Not in 2026. No property tax elimination amendment qualified for the 2026 ballot.
What is the income limit for the Ohio homestead exemption?
For tax years 2025 and 2026, the Ohio Department of Taxation lists a $40,000 Ohio modified adjusted gross income limit for the general senior and disability exemption.
The Bottom Line
Columbus homeowners face three moving parts at once: a new state property tax framework, a Franklin County value update, and 2027 bills that reflect both. So the right question is not “my value rose 10%, so will my taxes rise 10%?” Instead, ask how the new value interacts with your specific levies and credits. For tax planning around a home, rental, or sale, schedule a consultation in Columbus.
Sources
- Ohio House of Representatives, property tax relief legislation
- Vorys, Ohio’s New Property Tax Legislation
- Tucker Ellis, Four New Ohio Property Tax Laws
- Franklin County Auditor, 2026 Property Value Update
- Franklin County Treasurer, Collection Dates
- Ohio Department of Taxation, Homestead Means Testing
- Signal Ohio, property tax abolition campaign update
Disclaimer: This article provides general information and is not tax or legal advice. Property tax effects vary by county, school district, and parcel.
