Key 2026 Tax Updates: Ohio Property Relief and Federal Estate Exemption Increases

As we move through the early months of 2026, Arnold Gruber, Ltd., Attorneys at Law remains dedicated to keeping you informed about important tax developments that may affect your businesses, properties, and family estates in Ohio and Pennsylvania. Today, we’re highlighting two significant changes with real potential to deliver savings and new planning opportunities: Ohio’s property tax reforms and the increased federal estate tax exemption. Let’s make sure you’re taking full advantage.

Ohio Property Tax Relief Reforms: Savings for Business and Home Owners

Ohio’s comprehensive property tax overhaul, enacted in late 2025, introduces meaningful relief measures that take effect primarily for tax year 2026. Key provisions include:

• Inflation Caps on Tax Increases — Under House Bill 186 and related legislation, annual property tax growth tied to reappraisals and inside millage is now limited to the rate of inflation (measured by the GDP deflator and updated every three years). This protects owners from steep increases driven by rising market values, especially in rural and commercial areas including Canton and surrounding communities.

• Enhanced Owner-Occupancy Credit — The credit for primary residences is increasing from 2.5% to 5.7% in 2026, with further phased increases planned up to 15% by 2029. At the same time, non-business credits for rental properties are being phased out to focus relief on owner-occupied homes.

• 20-Mill Floor Adjustments — New rules expand the inclusion of emergency and substitute levies, which may pull more school districts and other taxing authorities off the 20-mill floor and help stabilize rates for property owners.

These combined reforms are expected to provide more than $2 billion in statewide relief over the next three years. The impact will vary depending on location, property type, and assessment status. Now is the ideal time for business owners and property investors to review current assessments and explore optimization strategies.

2026 Federal Estate Tax Exemption: Expanded Wealth Transfer Opportunities

The One Big Beautiful Bill Act (OBBBA), passed in 2025, permanently increases the federal estate and gift tax exemption to $15 million per individual ($30 million for married couples) effective January 1, 2026—with no scheduled sunset and inflation adjustments beginning in 2027.

The annual gift tax exclusion remains at $19,000 per recipient ($38,000 for couples). This substantial increase creates powerful opportunities for tax-efficient wealth transfers, particularly for family businesses, high-net-worth individuals, and those planning generational transitions. While federal thresholds have risen significantly, state-level taxes—such as Pennsylvania’s inheritance tax—continue to apply and should be factored into your planning.

This is an excellent moment to revisit estate plans, review trusts, evaluate gifting strategies, and ensure your succession arrangements align with the new exemption levels.

At Arnold Gruber, Ltd., Attorneys at Law, our team is ready to help you analyze how these changes affect your specific circumstances—whether that involves a property tax review, estate plan update, or strategic consultation. Please contact us to schedule a discussion at your convenience.