In Ohio, sales tax exemption applies to certain types of food, some building materials, and prescription drugs.
Goods subject to sales tax in Ohio include furniture, home appliances, and motor vehicles. Groceries, clothing, gasoline and prescription medicine are tax-exempt.
Ohio uses a 5.75% state-wide sales tax rate, but most cities or counties apply an additional .75 to 2.25%. For instance, Wayne County only charges 6.5%. In contrast, Cleveland charges a total of 8%.
Tangible products are generally taxable in Ohio, with a few exceptions. Services are generally not taxed. Digital products are taxed.
Sales Tax Rates and Exceptions
- Ohio first adopted a sales tax in 1934, and the rate has risen to 5.75 percent.
- There may be additional local sales taxes up to 2.25 percent.
Exempt Purchases
Some purchases in Ohio are exempt from sales tax.
To download and complete the appropriate exemption forms, visit Ohio’s tax forms page. The state has several forms, including the general resale certificate and exemption forms for construction contractors, motor vehicles, and vessels.
Sales Tax Exemptions
In Massachusetts, the state sales tax rate is 6.25%.
- Clothing items costing $175 or less are exempt from sales tax.
- Candy is not taxed as it’s considered a grocery.
- Services are generally not taxable, with exceptions for tangible personal property.
Special Cases and Online Sales
- The sales tax holiday exempts items under a certain value, and all retailers must participate.
- If less than 6.25% sales tax is paid to another state, Massachusetts use tax applies for the difference.
- Internet sellers placing software or cookies on local devices may establish nexus requiring sales tax collection.