There's a new tax line in Westerville. Voters approved a 0.75% school district earned income tax for the Westerville City School District, and if you're buying or currently own in the district, it belongs in your budget math.
Here's the full breakdown, including who pays, what it actually costs, and why the district went this route instead of raising property taxes.
What the 0.75% School District Income Tax Actually Is
This is a school district income tax, not a property tax. The rate is 0.75%, applied only to earned income: W-2 wages, salaries, and net self-employment income. It applies to residents of the Westerville City School District, not to people who work here but live elsewhere.
What it does NOT touch: Social Security benefits, pension income, retirement distributions, unemployment compensation, interest, dividends, or capital gains. If your household income in retirement comes entirely from those sources, this tax does not apply to you.
It is also a "continuing" levy. That means it does not expire on a fixed date. It stays in place unless voters later move to repeal or modify it.
What It Costs at Real Income Levels
The math is straightforward. 0.75% means 75 cents on every $100 of earned income.
The district and local media have cited these figures as reference points:
- $50,000 in earned income: $375 per year, roughly $31 per month
- $75,000 in earned income: $562.50 per year, roughly $47 per month
- $100,000 in earned income: $750 per year, roughly $63 per month
For a dual-income household earning $200,000 in wages, you're looking at $1,500 per year, or about $125 per month.
These are estimates based on the stated rate. Your actual tax will depend on your specific earned income. Talk to your accountant if you want a precise number for your situation.
Why the District Did This Instead of Raising Property Taxes
Context matters here. The Westerville City School District had previously put a 4.9-mill operating levy and a 1.66-mill bond issue before voters. Both would have raised property taxes. Voters rejected both. Those rejections led to actual cuts: staffing reductions, reduced class sizes, program cuts.
The district says the 0.75% earned income tax is projected to generate approximately $24 to $24.3 million per year. The stated purpose is to preserve staffing levels, class sizes, and academic programs, not to fund new construction.
District leadership also framed the income tax approach as more equitable toward residents on fixed incomes, many of whom were already feeling pressure from existing property tax increases. Since the tax applies only to earned income, retirees living on retirement savings and investment income are not taxed by it.
What This Means If You Are Buying in the Westerville District
This tax is a line item. For working-age buyers, it sits alongside your mortgage payment, homeowner's insurance, city income tax, and property taxes. When you are comparing Westerville against nearby districts, this is one more variable to run.
A few things worth knowing as you evaluate the district:
Budget impact varies by income, not property price. A $600,000 home in Westerville and a $600,000 home just outside the district boundary can have identical mortgage payments, but different total monthly costs depending on which district the address falls in. If you are comparing specific addresses, confirm the assigned school district with Franklin or Delaware County records for that exact parcel. District boundaries do not always follow what you'd expect from a map.
The tax funds operations, not buildings. The district has been explicit that this revenue is directed at maintaining staff and programs, not at new facilities. That is a meaningful distinction for buyers who care about program quality and staffing stability.
Property values and school funding have a relationship. This is not an argument for or against the tax politically. It is just an observation: communities that perceive strong schools tend to see sustained demand for homes in that district. Districts that cycle through funding cuts and program reductions tend to see that reflected in how buyers weigh their options. The district is betting that stable funding protects long-term demand. Whether that plays out depends on how the funds are managed.
Running the Numbers for Your Situation
If you are actively shopping in Westerville or have an address you are considering, I can help you build a total monthly cost picture that accounts for property taxes, this earned income tax at your income level, and how the neighborhood compares to nearby options.
Reach out through my Calendly or call me at 937-239-2919. I will give you a straight read, not a sales pitch.
Adam Geuy, Realtor - NextHome Experience ABR | PSA | SRS | License #202000794 Each office is independently owned and operated.