Total Range for 2025
| Base state sales tax rate | 5.75% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-2.25% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 5.75%-8% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 23rd of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Ohio is 5.75%, but since the local rates range from 0-2.25% the total sales tax range is 5.75-8%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
If you sell a product for $100 in a location with a combined sales tax rate of 7.25% (4.75% base rate + 2.5% local rate), the sales tax amount would be $7.25 (100 x 7.25%). You would collect $107.25 ($100 + $7.25) from the customer.
Nexus: Why may you need to collect sales tax in Ohio?
In Ohio, just like many other states, there are two main ways to establish nexus, which triggers the obligation for a business to collect and remit sales tax: physical nexus and economic nexus.
- Physical Nexus: A business has physical nexus in Ohio if it has a physical presence in the state. This includes, but is not limited to:
- Maintaining an office, warehouse, or store in Ohio
- Having employees, representatives, or agents soliciting sales in Ohio on your behalf
- Owning or leasing tangible personal property in Ohio (with some exceptions)
- Economic Nexus: Even without a physical presence, a business can still have nexus in Ohio if it meets the state’s economic nexus thresholds. As of August 1, 2019, Ohio adopted an economic nexus standard that requires any person or business without a physical presence in the state to obtain an Ohio seller’s use tax license and collect and remit applicable sales tax if the business meets one or both of the following criteria in the current calendar year or the previous calendar year:
- The business has gross receipts into Ohio exceeding $100,000.
- The business has at least 200 transactions in Ohio.
Important Notes:
- Gross receipts include both taxable and non-taxable sales.
- If a business meets the economic nexus thresholds, it must register for a seller’s use tax license and start collecting sales tax from Ohio customers on the very next sale.
Understanding your nexus in Ohio is crucial to determine your sales tax collection obligations. If you’re unsure whether your business has nexus in Ohio, it’s always best to consult with a tax professional like Yonda Tax for guidance.
Services
- Generally, services themselves are not taxable in Ohio. However, there are a few exceptions where a service directly relates to the sale of tangible personal property, and the service charge is included in the sales price.
Goods
- Most tangible personal property sold in Ohio is taxable. This includes common items like furniture, sporting goods, and prewritten computer software delivered electronically.
- There are some exceptions for specific goods, such as: certain unprepared food items (but not restaurant meals), prescription drugs and medical devices, and certain farm machinery and equipment.
Freight/Shipping
- If the charges for shipping and transportation are itemized separately on the invoice and not included in the product’s sales price, they are generally exempt from taxation in Ohio.
- Conversely, if the shipping and transportation costs are integrated into the product’s sales price and not itemized separately, they are considered taxable along with the product itself.
Clothing
- Most clothing is taxable in Ohio except for certain protective gear
Electronics
- In Ohio electronics are subject to sales tax
SaaS
- SaaS is taxable when sold to businesses but not when sold to individual consumers
Digital Products
- Specified digital products are taxable whether rented or owned.
Software
- Prewritten computer software is taxable, whether purchased in CD form or downloaded electronically
How to Register for Sales Tax in Ohio?
If you’ve determined you need to collect sales tax in Ohio, registering for a Vendor’s License is the next step. Here’s how you can do it:
- Online Registration:
The Ohio Department of Taxation offers online registration through their Business Services Gateway. This is generally the fastest and most convenient method. Here’s what you’ll need:
- Business name and address
- Contact information
- Federal Employer Identification Number (EIN)
- Business activity start date
- Projected monthly sales and taxable sales
- Products or services offered
- Mail-in Registration:
If online registration isn’t an option, you can also register by mail using an application form (Application for a Vendor’s License – Form ST-100).
- Download the Ohio Application for a Vendor’s License (Form ST-100) from the Department of Taxation website
- Complete the form following the instructions provided.
- Mail the completed application form along with any required documentation to the address listed on the form.
Whichever method you choose, make sure to have all the necessary information readily available to ensure a smooth registration process.
Additional Notes:
- You may be required to file a surety bond along with your application, depending on your business type and projected sales tax liability.
- Once your application is approved, you’ll receive a Vendor’s License with your license number. You’ll need this number to collect and report sales tax.
For more detailed information and specific instructions, visit the Ohio Department of Taxation website or contact them directly.
How to Collect Sales Tax in Ohio
Once you’ve registered for a Vendor’s License and received your license number in Ohio, here’s what you need to know about collecting sales tax:
- Determine the Tax Rate:
The sales tax rate in Ohio is a combination of a statewide base rate and potential additional local rates. The base rate is currently 5.75%. However, many counties, cities, and special districts in Ohio impose additional local sales taxes on top of the base rate.
You can find the specific sales tax rate for the location where your business is located or where you’re delivering goods/services by using the Ohio Department of Taxation’s Sales and Use Tax Rate Search Tool ([invalid URL removed]).
- Apply the Tax Rate:
Once you know the applicable tax rate (statewide base rate + any local rates), simply add it to the taxable sales price of your goods or services to determine the amount of sales tax to collect from the customer.
- Keep Good Records:
It’s crucial to maintain accurate records of your sales and sales tax collected. These records are essential for filing sales tax returns and during any potential audits by the state. Your records should include:
- Sales receipts
- Tax rates applied
- Amount of sales tax collected for each transaction
- Details of exempt sales
- Report and Remit Sales Tax:
Ohio businesses are required to file sales tax returns and remit the collected tax on a regular basis. The specific filing frequency depends on your business’s total sales tax liability.
- Generally, businesses with lower sales tax liability will file quarterly, while those with higher liability may need to file monthly.
- You can find detailed information on sales tax filing deadlines and remittance procedures on the Ohio Department of Taxation website or by contacting them directly.
Additional Tips:
- Consider hiring a sales tax wingman to take care of calculations, filing, and remittance, saving you time and ensuring accuracy.
- Stay informed: Sales tax laws and regulations can change, so stay updated on any changes that might affect your business, particularly regarding local tax rates.
- Clearly display the sales tax: It’s a good practice to clearly display the sales tax amount on receipts or invoices to avoid confusion for your customers.
How to get a sales tax permit/license in Ohio?
To obtain a sales tax permit in Ohio, visit the Ohio Business Gateway or the Ohio Department of Taxation’s website to register your business. You’ll need to provide information such as your business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), and details about your business type and activities.
After completing the online application, you will receive your Ohio vendor’s license, which authorizes you to collect sales tax on taxable goods and services. Be sure to display the license at your business location and file regular sales tax returns with the Ohio Department of Taxation to stay compliant.
When are Ohio’s sales tax returns due?
Sales tax return deadlines in Ohio depend on your assigned filing frequency (monthly or quarterly) and the last day of the month your permit became effective.
- Monthly: Returns are due on the 23rd day of the month following the reporting period. For example, the return for July is due by August 23rd.
- Quarterly: Returns are due on the 23rd day of the month following the end of the quarter. For example, the return for the first quarter (January-March) is due by April 23rd.
- Semi-Annual: Returns are due on the 23rd day of the month following the end of the six-month period. For example, the return for the first half of the year (January-June) is due by July 23rd.
- Annually: Returns are due on January 23rd of the following year.
If the due date falls on a weekend or holiday, the return is due the next business day. It’s important to file returns on time to avoid penalties. You can find a detailed breakdown of filing deadlines based on your filing frequency and registration month on the Department of Taxation website.
Is anyone exempt from sales tax in Ohio?
Yes, Ohio provides several exemptions from sales tax. Some of the key exemptions include:
- Certain Goods and Services:
- Most food items intended for home consumption are exempt from sales tax.
- Prescription medications and certain medical equipment, such as wheelchairs and prosthetic devices, are exempt.
- Residential utility services, including electricity, natural gas, and water, are generally exempt.
- Sales for Resale:
- Items purchased for resale, rather than for personal use, are exempt from sales tax. Businesses must provide a valid resale certificate to the seller.
- Nonprofit Organizations:
- Purchases made by qualified nonprofit organizations are exempt from sales tax, provided they have an exemption certificate.
- Agricultural Items:
- Items used directly in farming operations, such as feed, seed, and tractors, are often exempt.
Do I Have to Collect Sales Tax from Ohio Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
Ohio has a marketplace facilitator law. This means 3rd party marketplaces such as Walmart or Amazon should collect sales tax on behalf of 3rd party sellers selling on that marketplace.
If you have a sales tax nexus in Ohio, remember you still need to collect sales tax on your other non-marketplace Ohio sales.
