Politics
Ohio's New Budget Formula Changes Columbus Property Tax Calculations
The revised state distribution method changes how much Columbus can offset local levies, producing different outcomes for Franklin County property owners than those in Cuyahoga and Hamilton counties.
How we reported this
The 2026 Ohio biennial budget revised the formula that distributes portions of state sales tax revenue to municipalities through the Local Government Fund. Columbus now receives allocations based on updated population and revenue capacity metrics rather than the prior per-capita baseline. City officials calculate that this shift requires Franklin County to adjust its effective property tax millage by 0.8 mills to maintain current service levels.
The change takes effect with the 2027 tax year because the General Assembly approved the budget in late June and the Ohio Department of Taxation must recalculate each county's share by December. Columbus receives roughly 18 percent of its general fund from this state source, a higher share than many smaller Ohio cities but lower than Cleveland's 22 percent share.
How the Formula Works in Columbus
Under the new method an average Columbus home valued at $280,000 faces an additional $84 in annual property tax if the city holds spending flat. Residents in the Linden and Hilltop neighborhoods, where assessed values rose faster than the county average last year, would see the largest dollar increases. The city budget office projects that 112,000 residential parcels will receive new notices by March 2027.
Cleveland's allocation under the same formula produces a 1.2-mill reduction in its required local levy, while Cincinnati records a 0.3-mill increase. Columbus therefore sits between the two peer cities in net local tax pressure, according to the Ohio Office of Budget and Management's June 2026 distribution tables.
City Council must adopt its 2027 tax budget by October 2026. If council keeps the current levy schedule, the municipal portion of the bill for a median-value home rises by $51. If council instead trims one police and fire overtime line item, the increase drops to $19.
The Ohio Department of Taxation will release final certified rates for all 88 counties on December 15. Columbus residents can review their individual estimates through the Franklin County Auditor's online portal beginning January 2027.