Hyde Park, Oakley, and Mount Lookout residents who earn a paycheck will pay $375 a year on $50,000 in income — or $750 on $100,000 — if voters approve a new Cincinnati Public Schools levy in November.
The Cincinnati Board of Education voted 5-2 on July 27, to place a five-year, 0.75% earned-income tax on the November 3, general election ballot. The levy would generate roughly $74 million a year for the district, according to a CPS announcement released after the vote.
It's the first time CPS has proposed an earned-income tax instead of a property-tax levy. Retirees would owe nothing. The tax applies only to wages, salaries, tips, and self-employment earnings of residents who live within the district. Social Security, pensions, and investment income are all exempt.
Why the board acted
CPS has not asked voters for new operating money in more than a decade. The district closed a projected budget gap of nearly $58 million this spring by cutting over 100 positions, imposing five furlough days, and reducing non-personnel spending by 10%. It adopted a balanced $634.6 million general-fund budget for 2026-27, but Treasurer Mike Gustin said those fixes won't hold.
"Inflation has changed the math," Gustin said at the July 27 meeting. "One-time measures and repeated reductions cannot solve an ongoing revenue problem. An earned-income tax would provide recurring revenue tied to residents' earnings while excluding retirement and investment income."
About $6.7 million of the current budget relies on one-time revenue that won't be available in future years, according to the district.
Superintendent Shauna Murphy said CPS had examined every part of its operation and made difficult decisions before turning to voters. The levy would protect programs including Advanced Placement, Career and Technical Education, arts, athletics, magnet and Montessori options, student health services, and transportation.
How the vote unfolded
The board had been split as recently as its July 13 meeting, when members weighed a traditional property-tax levy against the earned-income option. Both would have raised more than $65 million annually, according to the Enquirer. Murphy urged the board to decide before the August 5, filing deadline.
Board member Eve Bolton signaled the eventual direction at the CPS board's June 23 meeting, saying the district needed to move to an income tax because "it makes more sense and it is a shared burden, more than property tax."
The 5-2 vote took place at a special meeting at Mary A. Ronan Education Center on Burnet Avenue. The names of the two dissenting members have not been confirmed in available reporting.
What it means for east-side families
For households in Hyde Park, Oakley, and Mount Lookout, the levy's earned-income structure shifts the cost away from home values in neighborhoods where property assessments have climbed sharply. Residents on fixed retirement income would not be taxed.
The five-year term aligns with the district's strategic plan, giving voters a defined window to evaluate how CPS uses the money.
Key dates
- Wednesday, August 5 — Filing deadline for the levy to appear on the November ballot.
- Tuesday, November 3 — Election Day. Voters decide the levy at the general election.
