Ohio’s state sales tax rate is 5.75 percent. Additionally, counties and other municipalities can add discretionary sales and use tax rates. Ohio also has several additional taxes for certain services and sales of goods, such as renting vehicles and selling tobacco and alcohol.
This guide does not fully describe all of Ohio’s laws and regulations regarding taxes. Businesses should contact a business attorney or visit the Ohio Department of Taxation website to learn more about the rules, regulations, tax laws, and tax information associated with their industries and the types of taxes due.
Types of taxes
Ohio businesses must charge sales taxes and pay use taxes. Businesses in the state also must collect and pay certain other taxes, such as a vehicle rental tax and tobacco taxes. Counties and other local jurisdictions can also charge an additional percentage for sales and use taxes.
Sales and use tax for retail sales and services
Businesses collect the state sales tax rate of 5.75 percent, plus the additional sales and use tax rate if any, that their counties charge. For example, a business located in Adams County pays the state tax rate of 5.75 percent, plus the county’s tax rate of 1.50 percent.
Any business owner who purchases taxable tangible personal property without paying the tax and uses or stores the property instead of reselling it must pay the use tax on the purchase. The use tax rate is the same as the sales tax rate.
Lodging (Hotel room occupancy tax)
Counties and municipalities can impose a lodging tax on hotels and other sleeping establishments. The combined tax for a county and a municipality cannot be over 6 percent – 3 percent at the municipality level and 3 percent at the county level.
Additionally, H.B. 518, which passed in 2002, allows a municipality to levy a 1 percent tax for convention center funding if the county in which the municipality is located also enacts the special lodging tax. Thus, some municipalities could have a lodging tax of over 6 percent.
Vehicle rentals
Ohio does not levy a separate motor vehicle rental tax. However, lessors must collect the state sales tax rate of 5.75 percent plus the county’s discretionary tax rate.
Marijuana excise tax
Adult-use marijuana is illegal in Ohio. However, medical marijuana is legal. Ohio does not levy additional taxes on medical marijuana. Buyers must pay the state and local sales tax rates on purchases.
Food and beverage tax
Food and food ingredients are not subject to the state’s sales tax. However, prepared food and certain categories of food, such as soda, are taxable at the state’s and local jurisdictions’ tax rates.
Liquor tax
Ohio does not levy additional taxes on retailers selling beer, wine, or liquor. The seller must collect the regular sales tax rate for its county in addition to the state rate.
Tobacco tax
In most cases, only wholesale dealers pay a cigarette tax via stamps that the dealer places on each pack. The current rate is $1.25 per pack. However, if a consumer purchases cigarettes or other tobacco products and the store owner does not pay the taxes, the consumer must pay the tax.
Discretionary taxes (Local tax rates)
Counties and other municipalities can also charge sales and use taxes on top of the state rate. The combined rates for business locations in the following counties and municipalities are as follows:
Adams: | 7.25 percent | Licking: | 7.25 percent |
Allen: | 6.85 percent | Licking (COTA): | 7.75 percent |
Ashland: | 7.00 percent | Logan: | 7.25 percent |
Ashtabula: | 6.75 percent | Lorain: | 6.50 percent |
Athens: | 7.25 percent | Lucas: | 7.25 percent |
Auglaize: | 7.25 percent | Madison: | 7.00 percent |
Belmont: | 7.25 percent | Mahoning: | 7.25 percent |
Brown: | 7.25 percent | Marion: | 7.25 percent |
Butler: | 6.50 percent | Medina: | 6.75 percent |
Carroll: | 6.75 percent | Meigs: | 7.25 percent |
Champaign: | 7.25 percent | Mercer: | 7.25 percent |
Clark: | 7.25 percent | Miami: | 7.00 percent |
Clermont: | 6.75 percent | Monroe: | 7.25 percent |
Clinton: | 7.25 percent | Montgomery: | 7.50 percent |
Columbiana: | 7.26 percent | Morgan: | 7.25 percent |
Coshocton: | 7.25 percent | Morrow: | 7.25 percent |
Crawford: | 7.25 percent | Muskingum: | 7.25 percent |
Cuyahoga: | 8.00 percent | Noble: | 7.25 percent |
Darke: | 7.25 percent | Ottawa: | 7.00 percent |
Defiance: | 6.75 percent | Paulding: | 7.25 percent |
Delaware: | 6.75 percent | Perry: | 7.25 percent |
Delaware (COTA): | 7.50 percent | Pickaway: | 7.25 percent |
Erie: | 6.75 percent | Pike: | 7.25 percent |
Fairfield: | 6.75 percent | Portage: | 7.00 percent |
Fairfield (COTA): | 7.25 percent | Preble: | 7.25 percent |
Fayette: | 7.25 percent | Putnam: | 7.00 percent |
Franklin: | 7.50 percent | Richland: | 7.00 percent |
Fulton: | 7.25 percent | Ross: | 7.25 percent |
Gallia: | 7.25 percent | Sandusky: | 7.25 percent |
Geauga: | 6.75 percent | Scioto: | 7.25 percent |
Greene: | 6.75 percent | Seneca: | 7.25 percent |
Guernsey: | 7.25 percent | Shelby: | 7.25 percent |
Hamilton: | 7.80 percent | Stark: | 6.50 percent |
Hancock: | 6.75 percent | Summit: | 6.75 percent |
Hardin: | 7.25 percent | Trumbull: | 6.75 percent |
Harrison: | 7.25 percent | Tuscarawas: | 6.75 percent |
Henry: | 7.25 percent | Union: | 7.00 percent |
Highland: | 7.25 percent | Union (COTA): | 7.50 percent |
Hocking: | 7.25 percent | Van Wert: | 7.25 percent |
Holmes: | 7.00 percent | Vinton: | 7.25 percent |
Huron: | 7.25 percent | Warren: | 7.00 percent |
Jackson: | 7.25 percent | Washington: | 7.25 percent |
Jefferson: | 7.25 percent | Wayne: | 6.50 percent |
Knox: | 7.25 percent | Williams: | 7.25 percent |
Lake: | 7.25 percent | Wood: | 6.75 percent |
Lawrence: | 7.25 percent | Wyandot: | 7.25 percent |
Registering for and filing Ohio's taxes
Any business taxpayer that sells tangible personal property or taxable services must register for a vendor’s license to report sales of tangible personal property. Out-of-state vendors must also apply for an account. Ohio requires businesses to submit tax reports and remit payment electronically.
Due dates for Ohio’s sales taxes
The sales and use tax reports and payment are due as follows:
- UST: If the business pays monthly: On the 23rd day of the following month. For example, for taxes collected in January, the report and payment are due on February 23.
- UST: If the business pays twice per year: On July 23 for taxes collected from January through June 30; and on January 23 for taxes collected from July through December 31.
- UUT: If the business pays monthly, on the 23rd day of the following month for use tax returns.
- UUT: If the business pays quarterly, on the 23rd day of the month following the end of the quarter. For example, taxes collected in the first quarter – January through March – are due on April 23.
Ohio sales tax holiday
Ohio made a sales tax holiday permanent in 2019. It happens the first Friday through Sunday in August, starting at 12:00 a.m. Friday and ending on Sunday at 11:59 p.m. This year’s tax holiday will take place from August 5 through August 7.
Items that are exempt from sales tax include:
- Clothing items that are $75 or less.
- School supplies that are $20 or less.
- School instructional material that is $20 or less.
If any of these items are used in a business or trade, they are not tax-exempt during the sales tax holiday.
Ohio sales tax exemptions
Everyone must pay sales tax except federal, state, and local governments and certain nonprofit organizations. Nonprofits should file Form STEC-B, Sales and Use Tax Blanket Exemption Certificate.
Remote and marketplace sellers
Remote sellers and marketplace sellers who do not have a physical presence in Ohio must collect sales taxes and remit payments to the Ohio Department of Taxation if:
- The business has gross receipts over $100,000, or
- The business made 200 or more separate transactions to Ohio.
The business that meets the nexus must apply for and obtain a seller’s use tax license, file sales tax returns, and remit the tax.
FAQs
Ohio’s base rate is 5.75 percent. Counties and municipalities in the state also charge local sales taxes.
Visit Ohio’s tax forms page to download and complete the appropriate exemption form. The state has several, including the general resale certificate, an exemption form for construction contractors, sales of motor vehicles, and sales of vessels.
Check with the state’s laws to find out if the state requires you to collect its sales taxes. Some states do not require you to collect sales tax unless you meet its nexus, which is usually $100,000 in gross receipts or 200 or more transactions for the previous year.
Several Ohio counties will increase their tax rates in April 2022, including:
- Coshocton County: Increase from 7.25 percent to 7.75 percent.
- Mahoning County: Increase from 7.25 percent to 7.50 percent.
- Toledo Area Regional Transit Authority (TARTA) has a new 0.50 percent sales and use tax. TARTA encompasses all of Lucas County and the City of Rossford in Wood County (increases to 7.25 percent for Rossford and 7.75 percent for Lucas County).
All tax increases are effective April 1, 2022.
Businesses can pay sales tax liability through the Ohio Business Gateway website or through Telefile at (800) 697-0440. Businesses may use the following to pay:
- ACH Debit
- ACH Credit
- Credit card
- Paper check
