Ohio’s sales tax framework presents a county-by-county approach that requires careful attention from business owners throughout the Buckeye State. With a state rate and county add-ons that vary by location, Ohio sales tax rates differ significantly depending on where you operate—from Cincinnati to Cleveland and Columbus to Toledo. This regional variation creates particular challenges for businesses operating across multiple Ohio counties, requiring systems that can accurately calculate, collect, and remit the correct amounts for each transaction. Let’s explore.
What is sales tax in Ohio?
In Ohio, sales tax is a “trust” tax that is to be collected by all retailers and certain service providers when they make taxable retail sales. If no sales tax is paid during a purchase, Ohio also imposes a use tax, which is a tax on the use, storage, or consumption of the taxable good or service.
What is the Ohio sales tax rate?
The statewide sales tax rate in Ohio is 5.75%, but most purchases end up being taxed at a higher combined rate. Unlike some other states, Ohio does not have individual cities that impose their own sales tax. Instead, counties and certain transit authorities can levy additional percentages, bringing the total rate anywhere from 6.5% to 8%, depending on where the sale takes place.
For example:
- Cleveland (Cuyahoga County): The combined state and local rate is 8%.
- Columbus (Franklin County): Shoppers here pay a combined rate of 7.5%.
- Cincinnati (Hamilton County): The total sales tax rate comes to 7.8%.
These examples show how Ohio’s blended system works: the state’s 5.75% base rate is consistent everywhere, while county and transit authority add-ons create differences from one region to another. To be sure you’re charging the right amount, always confirm the latest rates by searching on the Ohio Tax Finder.
How to calculate sales tax in Ohio?
To calculate sales tax in Ohio, start with the state’s 5.75% base rate, then add the local county and, if applicable, transit authority rate. Since rates can vary depending on where your customer is located, the total tax due is always the sum of the state rate plus the local add-ons.
For example, a $100 taxable sale in Cleveland would generate $8 in sales tax: 5.75% for state tax, 1.25% for Cuyahoga County tax, and 1% for the transit authority rate. The same transaction in Delaware, Ohio, would generate $7 in sales tax with Franklin County tax at 1.25%, and no transit authority rate.
Use our sales tax calculator
If you want a quick way to find out how much Ohio sales tax you owe, our calculator can help. Enter the total applicable sales tax and the amount of your taxable sales. The tool will show you exactly how much sales tax you need to remit to the state of Ohio.
Are all goods taxable in Ohio?
Not everything sold in Ohio is subject to sales tax. The state generally applies tax to most tangible goods, such as furniture, clothing, electronics, and household items. However, there are exemptions for certain essentials.
Is there sales tax on food in Ohio?
Ohio’s approach to taxing food differs slightly from that of many other states. Most grocery items are exempt from sales tax, and that exemption extends even to prepared foods sold in grocery stores or supermarkets, something that isn’t the case in many other states, where premade or ready-to-eat foods are typically taxed.
Instead, Ohio places its focus on where the food is consumed. Food and beverages that are eaten on the premises, such as in a restaurant or cafeteria, are taxable. However, takeout meals and foods intended to be consumed off-site remain tax-exempt. This makes Ohio’s rules around food tax unique and worth understanding if you’re a business owner in the food industry.
Do you charge sales tax on services in Ohio?
When it comes to services, Ohio does not tax every type of service, but it does impose tax on specific ones. Examples include professional laundry and dry-cleaning, landscaping and lawn care, and certain installation or repair services.
Digital products and subscription-based services also fall under the taxable categories. This means items like downloaded music, e-books, ringtones, and video games are subject to sales tax. Streaming services such as Netflix, Spotify, or Hulu are also taxable, since they fall under electronically delivered entertainment. In addition, software as a service (SaaS) is also considered taxable in Ohio. Therefore, businesses that provide access to cloud-based software must collect and remit sales tax on those subscriptions.
Because the rules can be nuanced and subject to change, businesses should review Ohio’s official tax guidance to make sure they’re applying the tax correctly.
What items are exempt from sales tax in Ohio?
In addition to products, some services are exempt from sales tax in Ohio. Professional services such as legal or accounting work, personal care like haircuts, and public transportation are not taxed. Visit the Ohio Department of Taxation’s FAQ page to get a list of what is taxable and what isn’t.
When is the Ohio sales tax holiday?
Ohio offers a sales tax holiday each year to give families a break on back-to-school shopping. During this period, specific items such as clothing, school supplies, and instructional materials are exempt from sales tax. The holiday usually takes place in early August and runs for a few days.
For businesses, it’s important to remember that sales made during the tax holiday must be processed without charging sales tax on the eligible items. Even if your point-of-sale system normally applies tax automatically, you’ll need to ensure it is adjusted correctly so that customers aren’t charged tax in error. The Ohio Department of Taxation provides detailed guidance on which products qualify and the exact dates each year, so it’s a good idea to check their site ahead of time.
Who pays sales tax in Ohio?
In Ohio, sales tax is a pass-through tax, which means the responsibility ultimately falls on the buyer at the time of purchase. Businesses don’t absorb the cost of sales tax themselves, but they are legally required to collect it on taxable goods and services and then remit those funds to the state.
Whether a customer shops in person at a retail store or orders online from a business that meets Ohio’s economic nexus thresholds, the buyer is the one paying the tax. The seller’s role is to act as the collector on behalf of the state and local governments.
What are businesses responsible for?
If you own or operate a business in Ohio, you’re responsible for making sure sales tax is handled correctly. That starts with registering for a vendor’s license before you begin collecting sales tax. Once registered, you must collect the proper combined state and local sales tax rate on all taxable transactions, keep detailed records of your sales, and file returns with the Ohio Department of Taxation.
Even if your business has no sales during a filing period, you’re still required to submit a return. Accuracy is key. Ohio businesses are expected to charge the right rate, remit payments on time, and comply with exemption rules. Failing to do so can result in penalties, interest, or an audit.
Managing sales tax in Ohio can be complicated, especially with varying state and local rates, exemptions, and filing deadlines. DAVO by Avalara reduces the stress of sales tax compliance by automatically tracking taxable transactions, and remitting payments directly to the Ohio Department of Taxation. This ensures your business stays compliant, avoids penalties, and saves time that can be spent growing your business. With DAVO handling the details, you can focus on running your business rather than worrying about filings, rates, or exemptions.
How to file sales tax in Ohio?
Ohio businesses are required to file sales tax electronically through the Ohio Business Gateway. The Department of Taxation offers several filing options depending on your business type and sales volume. Even if you didn’t make a sale during the filing period, you are still required to submit a return. Your filing frequency is determined during registration and may change based on your annual sales.
Make your sales tax less taxing with DAVO.
How to register for a sales tax account in Ohio?
Before requesting a vendor’s license, you must first create an account through Ohio Business Gateway. After you create an account, you’ll be able to request a vendor’s license and receive the license immediately after submitting the necessary details. To register, you may need details about your business, including your Federal Employer Identification Number (FEIN) or Social Security Number (SSN), business address, and contact information on hand. When you receive your vendor’s license, you’ll use it for all future filings.
When are Ohio sales taxes due?
Ohio sales tax filing and payment deadlines depend on your business’s total tax liability. Most businesses file either monthly, quarterly, or semiannually. Your filing frequency is determined based on your business’s sales volume. Monthly returns are due on the 23rd day of the month following the reporting period. Quarterly returns are due in April, July, October, and January for the prior three months. Semiannual returns are due on January 23rd and July 23rd for the preceding six-month period. Visit the Ohio Department of Taxation website for the list of due dates.
Ohio also provides a discount to businesses that pay on time. Retailers can receive a 0.75% discount on the total sales tax collected, up to a maximum of $750. For information on other states that offer sales tax discounts, you can explore our full guide on sales tax vendor compensation.
How to pay sales tax in Ohio?
Businesses in Ohio must file and pay sales tax electronically through the Ohio Business Gateway. When you register for your vendor’s license, you’ll also establish an account on the Gateway, which becomes your main hub for filing returns and making payments.
Ohio no longer accepts mailed or paper returns. Everything must be submitted online. For payment options, you can submit payment through the OH|Tax eServices, the Ohio Business Gateway, or by phone. Payments can be made by electronic check or credit card, but keep in mind that processing fees may apply if you use a credit card. Even if you didn’t make any taxable sales during the filing period, you’re still required to file a return. Missing or skipping a filing can result in penalties and interest, so it’s important to stay current.
Where do the Ohio sales tax funds go?
In Ohio, the sales tax you collect doesn’t stay with your business. The funds go to support both state and local government services. The state’s portion of sales tax revenue is deposited into the General Revenue Fund, which pays for statewide programs like K–12 education, Medicaid, public safety, and infrastructure.
Local governments, including counties and transit authorities, receive their share of sales tax revenue as well. These funds are typically used to support community services such as public transportation, law enforcement, public libraries, and county health and social programs.
By collecting and remitting sales tax on time, businesses play a direct role in keeping Ohio’s state and local services running smoothly.
How do businesses manage tax-exempt sales in Ohio?
Not every transaction in Ohio is taxable, but it’s the seller’s responsibility to handle exemptions properly. When a customer claims an exemption, they must provide a completed exemption certificate at the time of sale. This protects your business if the sale is later questioned by the state.
Ohio recognizes four types of exemption certificates:
- Blanket Certificate – Used for ongoing, recurring purchases from the same buyer.
- Single-Purchase Certificate – Used for one-time exempt sales.
- Streamlined Sales Tax Certificate of Exemption – Accepted by multiple states participating in the Streamlined Sales Tax Agreement, including Ohio.
- Multistate Tax Commission Uniform Sales and Use Tax Certificate – Allows buyers who operate in several states to use one standard exemption form where permitted.
Always keep certificates on file, since missing or incomplete documentation could leave your business responsible for unpaid taxes.
What is the penalty for filing Ohio sales tax late?
Failing to file or pay Ohio sales tax on time can lead to steep penalties. The state imposes both flat fees and percentage-based charges, depending on how late the payment is.
If a return is filed late, Ohio assesses a penalty of up to 10% of the tax due or $50, whichever is greater. On top of that, if the tax payment itself is late, the state may impose an additional penalty of up to 50% of the unpaid amount. It’s also important to note that businesses are required to file sales tax returns even if they had no taxable sales for the period. Failing to file a “zero return” can still result in penalties, regardless of whether any tax was actually due.
On top of penalties, interest begins to accrue the day after the payment deadline and continues until the tax is paid in full. The exact rate is set by the Ohio Department of Taxation and varies from year to year. For 2025, the interest rate is 8% per year or 0.67% per month.
How DAVO can manage Ohio sales tax for you
Ever miss an Ohio state sales tax payment? Or struggle with varying county rates across different locations? Do you worry about having enough cash reserved for your Ohio sales tax obligations, or question whether your bookkeeping expenses are justified?
If so, DAVO is precisely what your business needs. From restaurants in Columbus to boutiques in Cincinnati and service providers in Cleveland, it’s specifically designed for business owners who understand it’s better to focus on customers than manage tax compliance. Let DAVO do it for you.
DAVO brings automation to the Ohio sales tax process—from daily collections with county-specific rates to accurate filing and on-time payments. It integrates seamlessly with your current POS system, operating invisibly in the background. And because DAVO helps to ensure your Ohio sales taxes will be filed correctly and paid punctually every time, you can redirect your focus to growing your business in Ohio’s diverse market.
Choose your POS system to get started with DAVO today.
Ohio Sales and Use Tax Help:
Ohio Department Of Revenue
(888) 405-4089
