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Whether you're launching a business in Ohio or simply trying to figure out the sales tax on your next purchase, navigating complex tax laws is no easy feat. This detailed guide breaks down Ohio’s rates, regulations, and essentials into straightforward, bite-sized tips so you can stay informed, compliant, and stress-free.
Key takeaways
- The Ohio 2025 sales tax rate ranges from 5.75% to 8.0%, depending on the location. It comprises a base rate of 5.75% plus a mandatory local rate of 0% to 2.25%. Some counties can reach 8.25% due to the Central Ohio Transit Authority (COTA) tax.
- All businesses with a physical presence in Ohio are required to collect and remit sales tax.
- All remote businesses with more than $100,000 in sales or 200 transactions from Ohio customers in the current or previous calendar year are required to collect and remit sales tax.
- The penalty for late filings or payments includes a charge up to $50 or 10 percent of the unpaid tax, whichever is greater. If you fail to remit collected taxes on time, you may incur a penalty of up to 50% of the overdue tax and accrue interest charges.
- Most goods are subject to Ohio state tax, but the tax rate varies depending on the type of good and the jurisdiction.
The Ohio sales tax rate in 2025 is 5.75% statewide. This comprises a base rate of 5.75% plus mandatory local rates, which range from 0% to 2.25%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 8.0%, with some counties reaching 8.25% due to the Central Ohio Transit Authority (COTA) tax.
List of local sales tax rates in Ohio
Ohio sales tax rates differ by county and jurisdiction. Below is an example of some local rates:
Note that these are the combined state and local tax rates. They include state, county, city, and in some cases, the Central Ohio Transit Authority (COTA) tax.
Sales tax rates are subject to change. To determine the current local sales tax rate, review Ohio's table of combined state and local tax rates by county. The state also provides a sales tax finder (Ohio sales tax calculator). Enter your address and item amount, and the tool will supply the current Ohio tax obligation.
Sales tax 101
Do you shop for goods or services in Ohio? Or maybe you run a business here or sell to customers who live in the Buckeye State? If so, sales tax likely applies.
Whenever you purchase certain items or services, Ohio and your local jurisdiction apply a sales tax at the point of sale. Consumers pay the tax to the store (or report Ohio use tax directly to the state if you make a purchase online).
If you own a business selling taxable goods or services, you need to collect sales tax from your customers and forward it to the Ohio Department of Taxation. Remember, those dollars aren’t yours to keep — they belong to the state. Missing a payment or filing late can result in penalties and additional interest.
We will delve into Ohio's business sales tax requirements and penalties in more detail later in this article.
Recent tax rate changes in Ohio
Ohio updates its tax laws regularly. It's essential to stay informed about the tax laws that may impact your business. Here are some recent tax rate changes in Ohio.
The sales and use tax rates for Lake County increased from 7.0% to 7.25%, effective April 1, 2025.
As of July 1, 2025, the Central Ohio Transit Authority (COTA) also increased sales tax rates .5% for all of Franklin County, and the areas that fall within the COTA district (Fairfield, Union, Licking, Delaware Counties).
According to Ohio law, Ohio counties and transit authorities can only update sales tax rates effective at the start of any calendar quarter. Visit this resource to stay updated on the Ohio Department of Taxation tax rate changes. You can also sign up for tax alerts to get notified of tax rate changes via email.
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Do I need to collect Ohio sales tax?
Do you sell products and services in Ohio? Even if you sell outside of Ohio, if you ship goods to Ohio customers, you might need to collect and remit Ohio sales tax. Your sales tax requirements will depend on whether you have physical or economic nexus.
Nexus: What it means and how it affects your business
Note that the term "economic nexus" is a common term used in sales tax discussions. However, Ohio also uses the term "substantial nexus" in place of "economic nexus." We've used these terms interchangeably in the article.
Physical nexus
If you live and conduct business in Ohio, you have established “physical nexus” in the state, which means Ohio law requires you to collect and send sales tax on purchases made by your Ohio-based customers.
Even if you don’t live in Ohio, you still establish physical nexus if any of these apply:
- You hire an employee who lives in Ohio
- You keep inventory stored somewhere in Ohio
- You sell stuff in Ohio — yes, even if it’s just for a weekend fair
- You run operations out of a location in Ohio
“Physical nexus” simply means you have a tangible footprint in the state. If you live in Ohio, hire someone who lives in Ohio, store goods in Ohio, or sell at any Ohio venue, you’ll need to register, collect, and remit sales tax to the state.
Economic nexus (substantial nexus)
Imagine you live in Colorado but start selling products to customers in Ohio — even though you don’t have a physical location in Ohio, you are still required to collect and remit sales tax if you hit certain thresholds (substantial nexus).
Are any of the following true of your business?
- You brought in $100,000 or more from gross receipts of tangible goods shipped into Ohio from the current and/or previous calendar year.
- You completed 200 or more separate transactions with Ohio buyers from the current and/or previous calendar year.
If either or both of these statements describe your business, you have established substantial nexus in Ohio. The next step is to register for an Ohio vendor’s license, collect both state and any local sales tax from your Ohio-based customers, and remit it to the Ohio Department of Taxation. We discuss how to register with the state of Ohio later in this article.
Good to know: If you sell via a third-party marketplace, you are still required to collect and remit sales tax. Even though you will use your marketplace sales to determine your threshold for sales tax registration, you are exempt; however, if your marketplace facilitator is collecting and remitting sales tax on your behalf. Note that even if you are not collecting and remitting sales tax, you still need to report the marketplace sales on your tax return (line 1) and deduct them under exempt sales (line 2). Visit this resource to learn more about Ohio's sales tax requirements and nexus thresholds.
Is Ohio sales tax destination-based or origin-based?
Ohio is an origin-based state. However, it functions as a destination-based state for remote sellers.
What's the difference between destination-based and origin-based sales tax states?
Origin-based states charge sales tax based on the seller's location, whereas destination-based states charge sales tax based on the buyer's location.
Ohio is an origin-based state, which means in-state vendors apply the tax where they’re located. However, Ohio also functions as a destination-based state for remote sellers. Out-of-state sellers must use the Ohio customer’s location to set the rate.
Let's say you run a business in Cleveland that receives orders. Since you received the order from within Ohio, the sale is sourced to your location. You will use your Cleveland, Ohio sales tax rate (state plus local tax based on your physical location) on every sale.
Note that even if you ship the product from a location outside of Ohio, you are still required to collect and remit state tax since Ohio determines sales tax rates based on the location from which you received the order.
If you have physical nexus in Ohio, but ship to customers not located in Ohio, you are not subject to Ohio sales tax. However, you may be subject to sales tax in the customer's state of residence. Research the nexus and sales tax laws for the locations to which you ship.
If you are an out-of-state vendor that ships goods to Ohio customers, the sale is taxed based on the delivery address where the buyer takes possession of the items.
How do you determine whether you are subject to Ohio state tax? If you require further assistance, consult the following additional resources from the Ohio Department of Taxation. They go into more detail on different business tax scenarios (marketplaces, lodging) and requirements.
Ohio Sales and Use Tax: Sourcing
Ohio Sales and Use Tax Sourcing Chart
What's taxable?
Let’s look at the products and services that are taxable and exempt in Ohio.
Which ecommerce goods are taxable?
Ohio applies tax to the sales of tangible personal property, unless it is specifically exempt. Some taxable items include:
- Clothing
- Furniture and home furnishings
- Prepared food consumed on the premises where it is purchased
- Soft drinks
- Home appliances
- Cleaning supplies
- Pet supplies
Are groceries and food taxable in Ohio?
Most grocery food items are exempt from sales tax in Ohio. However, prepared foods, soft drinks, dietary supplements (non-prescription products), and other grocery items are subject to tax.
Ohio makes a distinction between "food consumed on premises" (for dine-in, on-site consumption) and "food not consumed on premises" (take-out, to-go), with the latter being exempt from taxation. Food sold for consumption off-premises (such as groceries) is also not taxable.
Good to know: If you sell food at a drive-thru, you don't have to collect tax on orders because the food will be consumed off-premises. However, if that same order contains a soft drink, you have to collect tax on that drink because it is not classified as a "food" item.
Visit the following resources to learn more about Ohio food classification and tax requirements:
Food Service Industry - Retail Sale
Everyday Purchases in Ohio
Is clothing taxable in Ohio?
Clothing is generally taxable in Ohio unless specifically exempted. For example, certain medical and mobility-enhancing equipment, as well as some personal feminine hygiene products, are exempt from sales tax.
Are digital products taxable in Ohio?
Yes, digital products, such as ebooks, music, movies, and software, downloaded electronically, are generally taxable in Ohio.
Is software-as-a-service (SaaS) taxable in Ohio?
Yes, software-as-a-service (SaaS) is considered taxable in Ohio as electronically delivered software if the customer uses it for business purposes, not personal.
There are also exemptions, such as churches or other qualified nonprofits, research and development, and political endeavors, among others.
Calculating Ohio SaaS sales tax can get complex depending on your customers. We recommend consulting with a tax professional to ensure you're collecting and remitting sales tax correctly.
Are services taxable in Ohio?
Most services are taxable in Ohio, while others are exempt from taxation. Standard taxable services include landscaping, personal care (not including hair care), property repair, laundry, and investigative services. Snow removal and janitorial maintenance are taxable if annual sales reach or exceed $5,000.
Exemptions
Ohio provides sales tax exemptions on specific categories of products and buyer types, including but not limited to:
- Prescription drugs
- Groceries (with some exceptions)
- Some medical devices
- Sales for resale with a valid certificate
- Sales to tax-exempt organizations like charities, schools, and government agencies
According to the Ohio Department of Taxation, "This list of exemptions is merely an abbreviation of the law. The statutes and rules concerning sales tax exemptions are very long and complicated. Also there are hundreds of court decisions which affect the application of these exemptions. If you have any questions regarding a particular situation, please contact the Department of Taxation."
Excise taxes in Ohio (alcohol, tobacco, gasoline, fuel, marijuana)
Ohio levies selective excise taxes on the sale or distribution of motor vehicle fuel, alcoholic beverages, tobacco products, and medical marijuana. Please note that counties may impose additional taxes not specified below. See current state excise tax rates in Ohio:
- Motor vehicle fuels like gasoline and diesel: $.385 per gallon of gasoline and $.47 per gallon of diesel
- Wine: $.32 per gallon (4%-14% alcohol); $1.00 per gallon (>14% up to 21% alcohol)
- Beer: $.18 per gallon
- Liquor: $3.38 per gallon
- Cigarettes: $1.60 per pack of 20
- Other tobacco products: 17% of the wholesale price
- Adult-use cannabis: 10%
Ohio does not have a general excise tax that broadly applies to food and beverage sales.
Sales tax rates for fuel products in Ohio
Ohio requires a sales tax on fuel products, including gasoline, diesel, and aviation fuel.
How to register for an Ohio vendor's license
Here are the steps to register for a vendor's license in Ohio.
Register online through the Ohio Business Gateway. You’ll need to create your Gateway account before you can apply for a vendor’s license. Here is the information you'll need for your application:
- Legal business name, address, entity type
- Federal EIN (or SSN)
- Responsible party’s name and contact information
- NAICS code and description of business activities (e.g., “retail sales of tangible personal property”)
- Estimated monthly tax liability
Once registered, you'll have a vendor's license to collect and file Ohio sales tax. Consult this Ohio licensing page to learn more about Ohio licenses, fees, and requirements.
Registration costs for an Ohio sales tax license
Ohio's vendor license fee is $50, paid at the time of online registration. Out-of-state sellers applying for a license are exempt from this fee.
Remote sellers exceeding $100,000 in Ohio gross receipts or 200 transactions for the current and/or previous calendar year must register for an Ohio vendor's license, as per the substantial nexus rules. This rule also applies to marketplace facilitators.
Ohio sales tax return filing schedule and due dates
The Ohio Department of Taxation assigns a monthly or semi-annual filing frequency for most vendors and sellers.
Vendors and sellers with tax liability less than $1,200 per 6-month period can file semi-annually. If your tax liability is greater than $1,200 in a 6-month period, you must file returns monthly.
Sales tax returns are due on the 23rd day of the month following the end date of the filing period.
Monthly:
Semi-Annual:
Good to know: The Ohio Department of Taxation assigns a third filing frequency (quarterly) to consumer use-tax accounts and direct-pay permit holders, not to regular vendor accounts. These returns are due by the 23rd day of the month following the end of each quarter.
Consult Ohio's License Filing Requirements page for more information on licensing categories and filing requirements.
Filing and payment penalties
Penalties for late filing or nonpayment of Ohio sales tax include a charge up to $50 or 10 percent of the unpaid tax, whichever is greater. If you fail to remit collected taxes on time, you may incur a penalty of up to 50% of the overdue tax. Unpaid taxes may also accrue interest charges.
I didn't collect any Ohio sales tax. Do I still have to submit a return?
All businesses registered for a vendor's license in Ohio are required to file sales tax returns, even if they collected no tax for the period. You must file the UST-1 form electronically through the Ohio Business Gateway.
Audit & appeals process
The Ohio Department of Taxation conducts audits to ensure businesses are complying with tax laws. Practices such as consistently filing late returns, failing to pay, or discrepancies or irregularities in your returns can trigger a sales tax audit.
Audit process — what to expect during the audit
The basic steps in an Ohio sales tax audit are:
- Audit scheduling and information request by the tax commissioner
- Review of tax records
- The commissioner issues an assessment report
During the audit, the tax agent will review your sales tax returns, exemptions claimed, and transaction records. They will likely interview you about your processes and identify any areas of non-compliance.
Be prepared to provide all resale certificates, exemption certificates, and other supporting records that demonstrate why you didn't charge tax on certain transactions.
After the audit — appealing the results
If you disagree with the audit results, you can file a petition for reassessment or a refund claim within 60 days of receiving the notice. The tax commissioner then makes a final determination.
If you disagree with the tax commissioner's final determination, you can appeal to the Ohio Board of Tax Appeals.
You can also appeal the Board of Tax Appeals' decision to the Ohio Courts of Appeals or the Supreme Court of Ohio. For more information, see the Ohio Appeal Procedure.
Contesting audit findings in Ohio early helps you avoid interest and penalties that continue to accumulate while the appeal is pending.
Sales tax FAQs
How do you calculate Ohio sales tax?
To calculate Ohio sales tax, use the formula:
Sales tax = (5.75% + local rate) * purchase price
For an 8% combined rate with a $100 purchase, the sales tax would be $8.
Is Ohio a streamlined sales tax state?
Ohio is a full member state of the Streamlined Sales and Use Tax Agreement (SSUTA).
Do I need an Ohio license if I’m only a wholesaler?
No, you do not need an Ohio vendor's license if you only sell wholesale and the buyer provides a valid resale certificate. If you sell goods to retailers without a resale certificate (taxable retail sales), you are required to obtain a license and collect and remit sales tax to the state. Check with the Ohio Department of Taxation to confirm your business's requirements.
Do I need an Ohio license if I only sell temporarily in the state?
If you are making retail sales in Ohio, even temporarily, you likely need an Ohio license. Temporary sellers may qualify for a transient vendor's license. Confirm with the Ohio Department of Taxation whether a transient vendor's license would apply to your business.
How do you collect sales tax if you do not reside in Ohio (out of state)?
Even if you do not have a physical presence in Ohio, you may still meet the economic nexus thresholds. There are two main ways sellers can meet the threshold for sales tax obligations:
- Physical nexus: Having property, employees, inventory, or other tangible assets located within Ohio
- Economic (substantial) nexus: $100,000 or more in gross receipts or 200 or more separate transactions providing goods or services into Ohio from the current and/or previous calendar year
If you meet or exceed either nexus threshold, you must register with the Ohio Department of Taxation and begin collecting and remitting sales tax.
You can register for an out-of-state seller's license through the Ohio Business Gateway. Obtaining a license will enable you to conduct business and collect sales tax in Ohio legally, even if you have no physical presence in the state.
Should you collect sales tax on shipping charges?
Yes, Ohio considers delivery charges as part of the sales price. Ohio's associated shipping charge is also generally taxable if the product being shipped is taxable.
If you ship taxable and non-taxable items in the same shipment, calculate the charge based on the ratio of taxable property to the total property (calculating based on price or weight) to determine the taxable portion of the shipping fee. Tax only the portion allocated to taxable goods. Otherwise, you must tax the entire delivery charge.
When are returns due in Ohio?
Sales tax returns in Ohio are due on the 23rd of the month following the end of the filing period (monthly or semi-annual). For example, if you're on a monthly schedule, file returns by February 23rd for the January filing period. If you're on a semi-annual schedule, file returns by January 23rd for the July-December tax period.
Can I amend an Ohio sales tax return?
Yes, you can file an amended return in Ohio by amending and resubmitting your original return. Here are instructions on how to submit and amend an Ohio sales tax return.
Does Ohio have an annual sales tax holiday?
Yes, Ohio holds a 3-day Expanded Sales Tax Holiday every August. Most tangible personal property priced at $500 or less at the time of purchase is exempt from both state (5.75%) and local sales taxes. Watercraft, outboard motors, motor vehicles, alcoholic beverages, and certain other items remain taxable regardless of price.
Information & contacts
For sales tax questions, contact:
- Ohio Department of Taxation
- Phone number: (888) 405-4039
- Website: tax.Ohio.gov
- Ohio state website
There you have it, an in-depth guide to Ohio sales tax. We know tax regulations can feel daunting, sometimes even the pros find them tricky to navigate. If you’d prefer to focus on growing your company rather than wrestling with complex sales tax code pages daily, let us show you how Numeral can help.
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