- Types of Goods Exempt from Sales Tax
- Sales tax exemption applies to certain types of food, some building materials, and prescription drugs.
- Many states have special, lowered sales tax rates for staple goods like groceries, clothing, and medicines.
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Taxable and Exempt Goods
- Goods subject to sales tax in Ohio include physical property like furniture, home appliances, and motor vehicles.
- Prescription medicine, groceries, and gasoline are all tax-exempt.
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Tax Rates and Local Variations
- Ohio uses a state-wide sales tax rate of 5.75%, with additional local sales and use taxes ranging from 0.75% to 2.25%.
- Rural areas may charge 6.5%, while larger cities like Cleveland charge 8% due to maximum local tax rates.
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Taxation of Services and Digital Products
- Tangible products are generally taxable in Ohio, with some exceptions.
- Services like plumbing and freelancing are generally not taxed, while digital products are subject to taxation.
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History and Forms
- Ohio first adopted a general state sales tax in 1934, which has since increased to 5.75%.
- Various local and special district taxes may also apply, ranging between 0% and 2.25%.
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Exemption Forms
- Visit Ohio’s tax forms page to download and complete exemption forms, including those for resale, construction, motor vehicles, and vessels.