Abstract To transform the original centralized scheduling framework of integrated community energy systems (ICES), a decentralized scheduling method is proposed for the optimal operation of ICES. Firstly, linearized mathematical models of the electric distribution system and natural gas distribution system are established to eliminate the nonconvexity and nonlinearity of the multi-energy systems. Meanwhile, an improved energy hub model is proposed by introducing the state variable, which is able to obtain the optimal solution with better accuracy and higher efficiency. Secondly, a decentralized scheduling framework is developed via an improved consensus-based alternating direction method of multipliers (ADMM). By introducing several coupling links as consensus variables, the optimal operation of the ICES is decoupled according to the physical interactions among each sub-system, in which the original model can be solved parallelly in a decentralized manner. Only the consensus variables are exchanged among sub-systems so that the privacy and confidential items of each sub-system operated by different entities can be ensured. Finally, two different ICES test cases with different system scales are utilized to demonstrate the effectiveness of the proposed method, which is able to provide scheduling scheme same as the centralized method. Dynamic step size modification is further considered in the consensus-based ADMM. By updating the step size during each iteration, the computation expense of optimization process is reduced with less consuming time, iteration and apparent oscillation, by which the convergence performance of ADMM is improved with higher computation efficiency.