Cincinnati Public Schools Proposes First Earned Income Tax Levy
Cincinnati Public Schools is proposing its first-ever earned income tax levy, seeking voter approval for a 0.75% tax on residents' wages. If passed, the levy is projected to generate approximately $74 million annually and would not apply to retirement income,…
Cincinnati, OH, July 28, 2026 —
Cincinnati Public Schools (CPS) is preparing to ask voters to approve its first-ever earned income tax levy. The proposed measure seeks a 0.75% tax on the wages earned by residents within the district.
If voters approve the levy, it is projected to generate approximately $74 million in revenue for the school district each year. Importantly, the proposed tax would not affect retirement income, Social Security benefits, or income derived from investments.
This proposal comes as CPS faces ongoing budget challenges. The district recently implemented personnel cuts as a measure to address a budget deficit. Officials aim for the earned income tax to establish a more consistent and reliable source of funding compared to the volatility often associated with property taxes.
The district’s move towards an earned income tax is also influenced by broader financial trends. Declining state funding and the impact of property tax abatements, which reduce the tax base, have created pressure on the district’s financial stability. An earned income tax is seen by CPS leadership as a way to diversify revenue streams and provide a more predictable financial future.
Story summarized from the original created by Valerie Lyons on www.wcpo.com, see more information here.
