In Ohio, sales tax applies to retail sales of tangible personal property and certain services. Sales tax exemption applies to certain foods, building materials, and prescription drugs. Restaurant meals may have special sales tax rates.
The Ohio sales tax rate is 5.75%. Counties and cities charge up to 2.25% local sales tax, for a maximum combined rate of 8%.
Taxable and Exempt Goods
Goods subject to sales tax include furniture, appliances, and vehicles. Prescription medicine, groceries, and gasoline are exempt.
Services and Other Considerations
Services like haircuts, car repairs, legal advice, and accounting are exempt from sales tax in Ohio. However, tangible goods provided in these services are taxable.
The rental or sale of films/tapes to individuals is taxable. Refundable deposits on returnable containers are exempt.
Sales Tax Collection Requirements for Sellers
Ohio requires out-of-state sellers to collect sales tax if they exceed $100,000 in gross Ohio receipts or 200 transactions.
Sales tax exemption in the state applies to certain types of food, some building materials, and prescription drugs.
Local Sales Tax Variability
Ohio uses a state-wide sales tax rate of 5.75%, but additional local sales and use tax ranges from .75 to 2.25%.
Digital products like mobile apps, SaaS, and video/audio streaming services are taxed in Ohio.
Ohio first adopted a general state sales tax in 1934, and the rate has risen to 5.75 percent. Local sales taxes can range between 0 percent and 2.25 percent.
For tax forms and to claim exemptions, visit Ohio’s tax forms page for necessary documentation.