As we enter 2026, Ohio property owners are navigating the most significant tax reform in decades. Following a legislative package signed late last year, the state has implemented sweeping changes designed to curb the "runaway" tax hikes caused by skyrocketing property values. At Susan Gwinn Law, we are helping clients understand how these new protections affect their bottom line.
Ohio’s Major Property Tax Overhaul: Navigating the 2026 Reforms
Capping Automatic Tax Increases
The cornerstone of the new legislation is a cap on "unvoted" tax growth. Previously, when property values surged, many homeowners saw their tax bills climb automatically. Now, the law limits this growth to the rate of inflation over the prior three years. This shift provides much-needed predictability for families and businesses, ensuring that local revenue doesn't outpace the actual cost of living.
New Inflation Cap Credits for Homeowners
A unique feature of the 2026 tax cycle is the "inflation cap credit." This retroactive measure is specifically targeted at communities where tax increases significantly exceeded inflation since 2022. We assist property owners in determining if their district qualifies for these credits, which can lead to substantial refunds or reductions on current tax bills, particularly for those in high-growth school districts.
Expanding the Owner-Occupancy Tax Credit
The reforms also prioritize primary residents through an expanded owner-occupancy tax credit. While this provides direct relief to those who live in the homes they own, the law simultaneously adjusted rules for non-owner-occupied residential properties. For landlords and real estate investors, these shifts require a careful review of portfolio strategies to ensure compliance and maximize any remaining available deductions or exemptions.
Empowering County Budget Commissions
In a major move toward local oversight, county budget commissions now have greater authority to unilaterally reduce voter-approved tax levies if they determine collections are excessive. This adds a layer of protection for taxpayers but also introduces new complexity into local tax disputes. We stay at the forefront of these administrative changes to effectively represent our clients' interests during property valuation appeals.
Plan Your Legal Strategy Today
While these reforms offer significant relief, the transition period can be confusing for both individuals and commercial entities. Ensuring your property is correctly classified and that you are receiving every credit you are entitled to is vital. At Susan Gwinn Law, we provide the expert guidance of an experienced attorney at law to navigate these complexities. We invite you to contact us for a lawyer consultation to discuss how these 2026 updates specifically impact your property and to ensure your rights are fully protected under the new Ohio tax landscape.