Montgomery County Property Values Increased: How Much Will Your Property Taxes Actually Go Up?
Many Montgomery County homeowners recently opened their mailboxes and found a surprise: a notice from the County Auditor showing an increase in their property’s appraised value.
For many homeowners, the first question is:
“How much more will I pay in property taxes?”
The answer isn’t always straightforward. While a higher home value can result in higher property taxes, Ohio’s tax system includes protections that often reduce the impact homeowners ultimately see on their tax bills.
Let’s break down what these new valuation notices mean and how you can estimate the potential impact on your taxes.
Why Did Property Values Increase?
County auditors periodically update property values to better reflect current market conditions and recent home sales.
Over the past several years, many areas throughout Montgomery County have experienced significant increases in home values, resulting in higher appraised values for many residential properties.
If your property’s value increased, you’re certainly not alone.
Will My Taxes Increase by the Same Percentage?
Not necessarily.
One of the biggest misconceptions is that if your property value increased by 10%, 15%, or 20%, your property taxes will increase by the same percentage.
While property value changes are part of the calculation, Ohio’s property tax laws include mechanisms that help limit the impact of rising valuations on many tax levies.
As a result, your actual tax increase is often much lower than your percentage increase in value.
How Ohio Property Taxes Are Calculated
Ohio calculates property taxes using a property’s assessed value.
The assessed value equals:
35% of the property’s market value
That assessed value is then multiplied by local tax rates and levies to determine the final tax bill.
Because each taxing district is different, property tax impacts vary from homeowner to homeowner.
How to Estimate Your Potential Tax Increase
A simple way to estimate the potential impact is:
- Find your current annual property tax amount.
- Compare your previous valuation to your new valuation.
- Calculate the increase in assessed value.
- Apply your effective tax rate.
- Adjust expectations based on House Bill 920 protections.
While this won’t provide an exact tax bill, it can help homeowners understand what to expect.
A Real-World Example
Let’s look at a real example based on a valuation increase many homeowners might see.
Suppose a home’s value increased from:
- Previous Value: $306,200
- New Value: $347,970
That’s an increase of:
$41,770
Or approximately:
13.6%
Step 1: Calculate the Assessed Value Increase
Ohio taxes property based on 35% of market value.
- Old Assessed Value: $306,200 × 35% = $107,170.00
- New Assessed Value: $347,970 × 35% = $121,789.50
Difference:
$121,789.50 − $107,170.00 = $14,619.50
Step 2: Determine the Effective Tax Rate
Assume the homeowner currently pays:
$7,163.45 annually
Using the previous assessed value:
$7,163.45 ÷ $107,170.00 = 6.684%
This provides an estimated effective tax rate.
Step 3: Calculate the Mathematical Increase
Applying the effective tax rate to the increase in assessed value:
$14,619.50 × 6.684% = approximately $984 per year
Or:
- Annual Increase: Approximately $984
- Semiannual Increase: Approximately $492 per half
At this point, many homeowners assume that amount will appear directly on next year’s tax bill.
However, Ohio’s House Bill 920 changes the equation.
Understanding House Bill 920
House Bill 920 was enacted to prevent local governments and school districts from automatically receiving large revenue increases simply because property values rise.
When property values increase across a taxing district, most voted tax levies are automatically adjusted downward.
This adjustment helps keep revenue from those levies relatively stable.
As a result, homeowners often do not experience the full mathematical tax increase calculated from the new valuation.
Only the constitutionally protected “inside millage” generally increases directly with rising property values.
What Could the Actual Increase Look Like?
Using the example above:
- Theoretical Increase: Approximately $984 annually
- Theoretical Increase Per Half: Approximately $492
After House Bill 920 adjustments are considered, many homeowners in Montgomery County may experience an increase closer to:
- Estimated Annual Increase: Approximately $484
- Estimated Semiannual Increase: Approximately $242 per half
This is not a guarantee and will vary depending on your specific taxing district, levies, tax credits, and future rates.
However, it demonstrates why a 13.6% increase in property value does not necessarily result in a 13.6% increase in property taxes.
How to Estimate Your Own Property Tax Increase
If you recently received a valuation notice, you can estimate your own potential increase by:
- Finding your current annual property tax bill.
- Calculating the percentage increase in your home’s value.
- Determining the increase in assessed value (35% of market value).
- Applying your effective tax rate.
- Recognizing that House Bill 920 will likely reduce much of the calculated increase.
This won’t provide an exact figure, but it can help you prepare for future tax bills.
What If You Think the County’s Value Is Too High?
Homeowners who believe their property’s new valuation exceeds its actual market value may have the option to file a complaint with the Montgomery County Board of Revision.
Successfully challenging a valuation requires evidence.
Strong supporting documentation may include:
- A recent settlement statement showing the property’s actual purchase price
- A professional appraisal
- Comparable sales from nearby properties
- Evidence of significant condition issues affecting value
A recent purchase transaction is often one of the strongest forms of evidence because it reflects an actual market sale rather than an estimated value.
If you believe your valuation is inaccurate, review the Board of Revision filing deadlines and requirements as soon as possible.
Why Accurate Property Values Matter
Property valuations affect more than taxes.
They can influence financial planning, household budgets, and future real estate decisions.
Reviewing your valuation carefully and understanding how the tax system works can help you avoid surprises and make informed decisions.
Final Takeaway
If you recently received a new valuation notice from Montgomery County, don’t panic.
While higher property values can increase taxes, House Bill 920 often helps reduce the impact many homeowners ultimately experience.
Take a few minutes to review your notice, estimate the potential increase, and determine whether the new valuation seems reasonable based on recent sales activity.
If you believe your home is worth less than the county’s estimate, gather supporting documentation and consider discussing your options with the Montgomery County Board of Revision.
Understanding your valuation today can help you avoid surprises when next year’s tax bills arrive.