Ohio Sales Tax Guide 2025: Everything to Know

Are you navigating the complexities of Ohio’s taxation system? Whether you’re a resident, business owner, or planning a move to the Buckeye State, understanding how to comply with Ohio’s tax requirements can save you time and money. This guide will walk you through everything you need to know about Ohio’s state taxes, including sales tax, use tax, exemptions, filing requirements, and more.

Sales Tax in Ohio

Ohio sales tax law, established in 1934, applies a statewide rate of 5.75%, with additional local rates determined by counties. Sales tax in Ohio covers tangible goods and certain services, while the Ohio sales and use tax ensures compliance for out-of-state purchases.

Ohio Sales Sales Tax Rate

Ohio’s base sales tax rate is 5.75%, with local county rates ranging from 0% to 2.25%, resulting in a total combined sales tax rate range of 5.75% to 8.00%.

Jurisdiction	Sales Tax Rate
State Tax	5.75%
Local Tax	0%–2.25%
Special Tax	0.00%
Combined Tax	5.75%–8.0%

For more information on city-based tax rates in Ohio check out Kintsugi’s City Level Sales Tax Guides.

Ohio Sales Tax Calculator

Imagine your business is located in Franklin County, Ohio, where the combined sales tax rate is 7.5%. You’re selling a chair priced at $200 and need to determine the sales tax and total price for the customer.

Step 1: Understand the Total Sales Tax Rate

To calculate the total sales tax, you first need to combine the state tax rate with the local tax rate:

Total Sales Tax Rate = State Rate + Local Rate

Total Sales Tax Rate = 5.75% + 1.75% = 7.5% 

Step 2: Calculate the Sales Tax

To calculate the sales tax, multiply the price of the item by the total sales tax rate:

Sales Tax = Item Price × Total Sales Tax Rate

Sales Tax = 200 × 0.075 =15

The sales tax on the $200 chair is $15.

Step 3: Calculate the Total Price

Add the sales tax to the original price of the item to determine the total amount the customer will pay:

Total Price = Item Price + Sales Tax

Total Price = 200 + 15 = 215

Final Answer:

The total price of the chair, including sales tax, is $215.

Additional Considerations:

• Local Rates: Verify the applicable local tax rate by using the Ohio Department of Taxation's tax lookup tools. The local rate depends on the customer's location if selling online or delivering goods.
• Exemptions: Certain items, such as prescription medications and food for home consumption, may be exempt from Ohio sales tax. Always check the rules for your specific products.
• Remote Sellers: Businesses outside Ohio must collect and remit sales tax if they meet Ohio’s economic nexus threshold ($100,000 in gross sales or 200 transactions annually).

By following this process, businesses in Ohio can accurately calculate sales tax, ensuring compliance with state and local regulations.

FAQ on Sales Tax in Ohio

What is the Sales Tax Rate in Ohio?

The base sales tax rate in Ohio is 5.75%, with local rates varying by county, resulting in a total range of 5.75% to 8.00%.

How to Calculate Sales Tax in Ohio?

Multiply the item price by the combined state and local tax rate to complete the calculation, ensuring any applicable shipping charges are also considered. For example, at a 7% total rate, the tax on a $100 item would be $100 × 0.07 = $7.

Sales Tax Nexus in Ohio ​

Ohio’s base sales tax rate is 5.75%, with businesses required to register for sales tax collection if they meet specific nexus thresholds or engage in taxable sales of tangible personal property in the state.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
August 1, 2019	$100,000 in gross sales or 200 transactions annually	Retail sales and Marketplace sales	The next day upon exceeding the threshold in the current calendar year.
Ongoing	Any physical presence in Ohio	Retail and Taxable Sales	Immediately upon establishing a physical presence, such as an office, warehouse, or employees.

FAQ on Sales Tax Nexus in Ohio

Does Ohio have Sales Tax Nexus?

Yes, Ohio enforces sales tax nexus for businesses with a physical or economic presence in the state, requiring them to collect and remit sales tax, and businesses may face penalties and interest for non-compliance.

What are the Nexus Rules for Sales Tax in Ohio?

Ohio’s nexus rules include physical presence (e.g., office, employees) and economic nexus, triggered by $100,000 in gross sales or 200 transactions annually within the state.

Ohio Sales Tax Exemptions​

Ohio provides a variety of sales tax exemptions to support nonprofit organizations, government entities, and specific industries. These exemptions help reduce costs for qualifying entities purchasing goods and services for exempt purposes.

Category	Exemption Description
Government Purchases	Federal, state, and local government agencies are exempt from sales tax on qualifying purchases.
Nonprofit Organizations	Sales made to nonprofit organizations for their exempt purposes are tax-exempt.
Resale Items	Goods purchased for resale are exempt from sales tax when the buyer provides a resale certificate.
Manufacturing Equipment	Machinery and equipment used directly in manufacturing or production are exempt.
Agricultural Supplies	Items such as seeds, fertilizers, and equipment for farming are exempt from sales tax.
Medical Items	Prescription drugs and certain medical devices are exempt from sales tax.
Food for Home Consumption	Grocery items intended for home consumption are tax-exempt in Ohio.

FAQ on Sales Tax Exemption in Ohio

How can I Apply for an Ohio Sales state tax-exempt Certificate?

To apply for an Ohio sales tax-exempt certificate, complete the STEC-B Exemption Certificate Form, available on the Ohio Department of Taxation website. Submit the form to the seller when making exempt purchases for qualifying purposes.

How do I Qualify for an Ohio Sales Tax Exemption?

Qualifying for an Ohio sales tax exemption depends on the purpose and nature of the purchase. Entities such as nonprofits, government agencies, and manufacturers may qualify. For a detailed list of exemptions and eligibility, check this blog on Ohio sales tax exemptions and review the full list of exemptions in this document.

What is Ohio SaaS Sales Tax?

Ohio considers SaaS (Software as a Service) taxable under its sales tax laws as it qualifies as a digital service. For a deeper understanding of SaaS taxation in Ohio, visit this blog on SaaS sales tax.

Is There Sales Tax on Clothing in Ohio?​

Yes, Ohio applies sales tax to clothing. However, certain exemptions, such as during the back-to-school sales tax holiday, may apply. Learn more by visiting this blog on Ohio clothing sales tax.

What Qualifies for Sales Tax Exemption in Ohio?

Ohio sales tax exemptions cover specific items such as prescription drugs, food for home consumption, agricultural equipment, and purchases made by exempt organizations like nonprofits and government agencies.

What Services are Exempt from Sales Tax in Ohio?

Certain professional services, such as medical and legal services, are exempt from sales tax in Ohio. Additionally, educational services and some financial services also qualify for exemptions.

What Items are Exempt from Sales Tax in Ohio?

Items like groceries, prescription medications, prosthetic devices, and certain agricultural supplies are exempt from Ohio sales tax. Manufacturing machinery and equipment used directly in production also qualify for exemptions.

Ohio Sales Sales Tax Filing

Ohio businesses are required to file sales tax returns based on their filing frequency. Returns can be submitted electronically through the Ohio Business Gateway.

How do I Apply for Ohio Sales Tax Registration?

Registering for sales tax in Ohio is essential for businesses engaging in the sale of taxable goods or services, especially if the business reaches a tax collection nexus in the state. The Ohio Department of Taxation provides an online platform to streamline the registration process, ensuring compliance with state tax laws, and aligning with streamlined sales tax initiatives.

1. Visit the Ohio Department of Taxation Website: Navigate to the Ohio Sales and Use Tax Information Page. Locate the section for sales tax registration.
2. Create an Account on the Ohio Business Gateway: If you’re a first-time user, visit the Ohio Business Gateway and create an account. Provide basic details such as your email address and choose a secure password.
3. Log In to the Ohio Business Gateway: After setting up your account, log in to the system using your credentials. You’ll be directed to your dashboard, where you can manage tax registrations.
4. Select "Sales Tax Registration": On your dashboard, find the option to register for sales and use tax. Click on “Start New Registration” to begin the process.
5. Fill Out the Registration Form:
   • Business name and legal structure (LLC, sole proprietorship, etc.)
   1. Federal Employer Identification Number (FEIN) or Social Security Number (for sole proprietors)
   • Business address and contact information
   • Description of the taxable goods or services you sell
   • Start date of taxable activities in Ohio.
6. Review and Submit the Application: Carefully review all the information for accuracy. Submit the application electronically through the Ohio Business Gateway.
7. Receive Your Sales Tax Account Number: Once approved, you will receive a confirmation email with your Ohio Sales Tax Account Number. This allows your business to collect and remit sales tax.
8. Begin Collecting and Remitting Sales Tax: After registration, start collecting sales tax from customers on taxable transactions. Use the Ohio Business Gateway to file returns and make payments by the due dates.

How do I Get a Sales Tax Permit in Ohio? 

Obtain a sales tax permit by registering online through the Ohio Business Gateway. Once your registration is complete, you’ll receive a sales tax permit to begin collecting and remitting tax.

What are Ohio Sales Tax Filing Requirements?​

Ohio businesses must file sales tax returns either monthly, quarterly, or semi-annually based on their total sales volume, following the streamlined sales tax guidelines. All filings are completed electronically via the Ohio Business Gateway.

How to Change Filing Frequency of Sales Tax in Ohio?

To change your sales tax filing frequency, contact the Ohio Department of Taxation. Changes are typically based on your sales volume and may require approval.

How Often do I Need to File Sales Tax in Ohio?

Filing frequency in Ohio depends on your business’s taxable sales. High-volume businesses file monthly, medium-volume file quarterly, and low-volume file semi-annually.

Ohio Sales Tax Due Date​

Ohio sales tax is due on the 23rd of the month following the reporting period. Businesses must ensure timely payment to avoid penalties.

Filing Frequency	Due Date
Monthly	23rd of the following month
Quarterly	23rd of the month following the quarter's end
Semi-Annually	23rd of January and July

What Day is Ohio Sales Tax Due?

Ohio sales tax is due on the 23rd of the month following the reporting period, regardless of your filing frequency.

What is the Penalty for Filing Sales Tax Late in Ohio?

Late filing of Ohio sales tax incurs a penalty of up to 10% of the tax due. Interest is also charged on late payments at the state’s annual interest rate.

For More Information

For more information on how to file your sales tax, visit the Ohio Sales Tax Revenue Service website.