What changed in Ohio’s tax laws
Lawmakers approved a five‑bill package at the end of 2025 aimed at curbing automatic tax spikes tied to rising property values and shifting more relief to owner‑occupied homes. Four of the measures, including House Bill 124 on reappraisal reforms and House Bill 335 on limiting revenue growth from certain millage, took effect March 18, 2026. A separate law, House Bill 186, increased the rollback for owner‑occupied homes and eliminated a nonbusiness credit for residential property starting in late 2025.
Under House Bill 124, the Ohio Department of Taxation must now base its review of county property values on recent open‑market, arm’s‑length sales data supplied by county auditors, rather than using its own separate sample. The law also accelerates the state’s review timeline and lets counties appeal corrections or sample orders to the Board of Tax Appeals and the Ohio Supreme Court, giving local officials a new avenue to challenge state‑imposed changes.
How second-half bills will be different
Residents should not expect to see these changes on their first‑half 2026 bills, which are already going out under the old formulas, county auditors and tax experts say. Instead, the Department of Taxation will work with county auditors in the coming months to recalculate effective rates and apply new credits so that the second‑half bills reflect the reformed system.
In Allen County, for example, Auditor Rachael Gilroy has advised property owners to pay their first‑half bills as usual while warning that adjustments from the reform package will only appear in the second‑half billing. “After that first‑half bill is processed, the State Department of Taxation will work with all the county auditors to get new rates into place and will recalculate taxes so that for the second‑half tax bills, people will actually see that reform,” Gilroy said.
Impact on homeowners and schools
The package is designed to deliver the most relief to people who live in their homes, while trimming tax breaks for rental and investment properties. Owner‑occupants will benefit from an expanded rollback and a higher owner‑occupancy credit that is set to grow from 2.5 percent to more than 15 percent over the next four years, according to local officials.
House Bill 335 requires county budget commissions to hold down revenue growth from “inside” millage during reappraisal or update years, generally limiting increases to the rate of inflation as measured by the GDP deflator over the previous three years. That cap is meant to prevent windfall tax collections when values jump, although school districts and local governments may still ask commissions to adjust rates to maintain prior‑year collections under certain conditions.
Reappraisals, updates and timing
Ohio already requires a full countywide reappraisal every six years and a triennial update in between, using recent sales to reset or adjust property values. The new laws do not change how often properties are valued, but they tighten how those values are reviewed and how much additional tax revenue local governments can collect from rising assessments in reappraisal and update years.
State officials have also realigned the reappraisal schedule across county groups to balance the workload for the Department of Taxation, a move they say should improve the accuracy and consistency of future valuations. In some counties, including Mahoning, that means a one‑year extension of the next full reappraisal, keeping current assessed values in place longer than previously expected.
What taxpayers should do now
County auditors and tax advisers are urging homeowners to check that they are properly registered for the owner‑occupancy credit and, if eligible, the Homestead exemption, both of which can lower final bills under the new framework. Homeowners concerned about their new values can also monitor local notices on reappraisals and remember that Board of Revision filing periods and appeal rights remain in place under Ohio law.
Officials caution that not all Ohioans will see their bills drop at once, and some may experience modest increases depending on local levies and school funding needs. But as the second‑half bills go out later this year, residents across the state will start to see how the Legislature’s multi‑billion‑dollar overhaul reshapes the balance between rising property values and the taxes that follow.