Ohio sales tax guide

Published Friday 26 September 2025

Table of contents

• What is Ohio sales tax?
• Items and services subject to Ohio sales tax
• Understanding nexus for Ohio
• How to register for a sales tax permit in Ohio
• Calculating rates and exemptions
• Sales tax return and payment due dates
• Extra things to know about Ohio sales tax
• FAQs on Ohio sales tax

Key takeaways

• Businesses that sell taxable goods or services in Ohio must collect and remit Ohio sales tax.
• You must obtain a sales tax license before selling any taxable goods.
• You can register online or with your county auditor.
• If your business is based outside Ohio, you need to collect sales tax if your sales exceed a certain threshold in the state.
• The state sales tax rate is 5.75%

What is Ohio sales tax?

Ohio sales tax is a consumption-based tax. That means consumers pay this tax when they purchase (consume) taxable items or services. Retailers collect the sales tax, file a return showing how much they collected, and send the taxes to the state.

Sales tax is different from “use tax”. A use tax applies if an item should be subject to sales tax but it wasn't applied – for instance, if you buy something online and don't pay sales tax, you should submit use tax to the state.

As of 2025, the Ohio sales tax rate is 5.75% (not including local taxes). Ohio uses destination-based sales tax – that means if you ship a taxable product to a buyer, the sales tax rate at their location applies, not the rate at your location.

Items and services subject to Ohio sales tax

In Ohio, certain services are subject to sales tax. If you provide any of these, you must collect tax:

Property and maintenance services

• Landscaping, lawn care, janitorial, and maintenance services (if annual sales exceed $5,000)
• Extermination and repair of tangible personal property
• Production of tangible personal property using customer-supplied materials

Personal and recreational services

• Hotels or short-term rentals (less than 30 days)
• Fitness facilities, recreation, and sports clubs
• Personal care services such as facials, manicures, hair removal, tattoos, and massages (excludes haircuts, color, or styling)
• Transportation of persons and snow removal services

Digital and information services

• Automatic data processing, computer, or electronic information services (e.g., internet access)
• Telecommunication and satellite broadcasting services
• Information services via 1-900 numbers

Other services

• Vehicle washing, cleaning, painting, and towing services
• Laundry and dry cleaning (excluding coin-operated machines)
• Tangible personal property storage

For a full list of taxable services, visit the Ohio Department of Taxation.

Understanding nexus for Ohio

You must collect and remit Ohio sales tax if your business has economic or physical nexus in the state. Nexus occurs when you:

• Have stores, offices, warehouses, employees, or other physical presence in Ohio
• Exceed $100,000 in sales or 200 transactions in the state

Marketplace facilitators and sellers

• If you sell through a marketplace facilitator, you generally do not need to file Ohio sales tax returns if the facilitator reports and remits tax on your behalf.
• However, if your total Ohio sales (including those outside the marketplace) exceed the economic nexus threshold, you must file a return showing all sales while claiming an exemption for marketplace-facilitated transactions.

How to register for a sales tax permit in Ohio

You can register for a sales tax permit online or through your county auditor. The process is fast and easy, especially if you do it online. Every location needs its own permit, and the fee is $50 (free for out-of-state sellers).

1. Gather the info

You need your business name, type of business (sole prop, LLC, corporation, etc), its tax ID number, address, and the NAICS code for your industry. You also must note if you plan to collect more than $200 in sales tax per month, and whether you have a liquor permit.

2. Complete your Ohio Business Gateway registration

First, you must set up an OHID personal account. Then, you can claim your business and ask for your sales tax account. Only owners and employees can register a business through the Ohio Business Gateway. Once they’ve registered the business, they can give their accounts or bookkeepers access.

If you decide to register in person with your county auditor, you also need basic business details, tax ID numbers, and a personal ID. You can also mail in Form ST-1 to ask for a sales tax permit. Here’s the form.

Remote sellers may register directly with the state or through the multi-state Streamlined Sales Tax Registration System.

3. Get your permit and start making sales

If you apply online, you'll get the permit right away and can start making sales immediately. If you mail a paper application to your county auditor, processing takes 4 to 6 weeks.

Calculating rates and exemptions

To calculate the sales tax rate for your Ohio business, you need to know the state rate, local rate, and which products or services are exempt.

Statewide base rate

As of 2025, the Ohio state sales tax rate is 5.75%. Local sales taxes are added on top, so your total rate may be higher depending on your location.

Local add-on rates

Counties and transit authorities typically charge additional local sales tax. For example:

Cuyahoga County adds 2.25%, bringing the total rate to 8%

Use the Ohio Department of Taxation’s Tax Rate Finder to check the exact rate for any address.

Exemptions

Products or services that are exempt from Ohio sales tax do not require tax collection. You may still need to report exempt sales on your sales tax return.

Shipping charges

Shipping and delivery fees are taxable if the items being shipped are subject to sales tax.

Sales tax return and payment due dates

All vendors must file sales tax returns online in Ohio. Then, you can either pay online with an ACH transfer or a credit/debit card (may be subject to a fee), or you can mail a paper check, cashier's check or money orders.

Due dates vary based on how much sales tax you collect. Most businesses must file and pay sales tax returns on the 23rd of the month following the month of sales. For example, sales tax on January sales is due February 23 or the next business day.

• If you collect less than $15,000 per quarter in Ohio sales tax, you may be able to file quarterly. Your returns would then be due on the 23rd of the month following the quarter you’re reporting on. For example, sales tax from the first quarter (January–March) is due April 23.

• Vendors that collect less than $1200 per six-month period must file by the 23rd of the month following the end of the semi-annual period -- the timing varies based on when you get your permit and your filing schedule.

Don’t pay your OH sales tax late. There are penalties if you do.

Extra things to know about Ohio sales tax

With any tax, there are always special rules and situations that you need to be aware of if you want to stay compliant. Take a look at these special situations with Ohio sales tax.

Orders containing both taxable and exempt items

Your invoice or receipt should clearly list which items are subject to sales tax and which are exempt. Then, you should apply the tax accordingly.

Ohio sales tax holiday

From August 1 to 14 each year, Ohio shoppers don't pay any sales tax on items costing less than $500, except for alcohol, tobacco, marijuana, motor vehicles, and watercraft.

Crediting and refunds

If you pay too much sales tax, you can amend your return and ask for a refund. Generally, you must wait for the state to send the refund; you can't apply it to a future return.

Manage sales tax easily with Xero

Tracking and calculating sales tax can be complicated – that’s where Xero small business accounting software can help you calculate the right rates.

Xero helps you organize your sales tax and stay compliant.It helps you track sales tax and automates your sales tax calculations, and is always up to date with any rate changes. It even integrates with other apps that can file your sales tax returns for you.

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FAQs on Ohio sales tax

Here are some common queries about OH state sales tax.

What items are exempt from sales tax in Ohio?

As a rule of thumb, most essential items are exempt from Ohio state sales tax. This includes most groceries, feminine hygiene products, prescription medication, and diapers for babies (or adults with a prescription). Check out the Department of Taxation for a complete list of exempt items.

How do I know if I need to collect Ohio sales tax?

Check the Ohio Department of Taxation website for a complete list of products and services that are subject to sales tax.

When are Ohio sales tax returns due?

Ohio sales tax returns are due on the 23rd of the month following the sales period – which may be monthly, quarterly, or semi-annually.

What happens if I collect the wrong sales tax rate?

Then, you may be personally liable for the uncollected amount.

I sell online to customers in Ohio. Do I have to apply sales tax?

It depends.If you have physical nexus in Ohio or if you exceed the threshold for economic nexus (over $100,000 in sales or over 200 transactions), you must apply sales tax and file returns accordingly.

Does Ohio have a sales tax holiday?

Yes! Ohio has an annual sales tax holiday before the school year starts – typically for 2 weeks in August. During the holiday, all personal property priced at $500 or less is tax free, except for alcoholic beverages, tobacco, vapes, marijuana, watercraft, and motor vehicles.