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OhioSales Tax

A Complete Guide For Businesses

Automate My OhioSales Tax Filings

State Rate
5.75%

Local Tax
yes

Phone
(888) 405-4039

General requirements

Ohio is an origin-based state (sales are taxed where the seller is located).

  • Sales tax is charged on the retail sale, lease, and rental of tangible personal property (TPP) as well as the sale of selected services
  • Licensed wholesalers and manufacturers are not taxed

Businesses are required to file electronically in one of two ways:

Rates

The state sales tax rate in Ohio is 5.75%. Counties and regional transit authorities may levy additional sales taxes. Total rates range from 6.5% to 8%. For more information, check out their current state and local rate totals.

How food is taxed

Most food items are not subject to the sales tax, though food sold in restaurants or sold to be consumed on premises is subject to the full state and local rate.

Nexus in Ohio

A business is considered to have established a tax presence in the state if it:

  • Maintains a physical presence in the state
  • Has employees or representatives regularly operating in the state
  • Makes regular deliveries of TPP into the state

The Department of Taxation is encouraging out-of-state sellers to register and begin collecting Ohio use tax for customers in the state. Ohio has entered into cooperative agreements with the tax departments of other states to assist each other in locating and contacting vendors who make online sales.

Filing schedule

Your filing frequency will be determined based on amount of tax liability as follows:

  • Annual filers: Less than $1,200 annual tax liability
  • Monthly filers: More than $1,200 annual tax liability

Tax returns for both monthly and semi-annual filers are due on the 23rd of the month following the tax period you're filing for.

If the UST-1 return and full payment are received by the Ohio Department of Taxation on or before the due date, the discount is 0.75% of the tax liability reported.

Registering to collect sales tax in Ohio

You must register to collect sales tax in the state by obtaining a vendor’s license.

This can be done in two ways:

Penalties

The Department of Taxation states that “interest may be due on any taxes found due and not paid in a timely manner.” The following penalties apply:

  • An additional charge up to $50 or 10% of the tax due, whichever is greater, may be charged on every tax return not filed on time and/or when the tax liability is not paid in full
  • For not paying collected taxes, or not filing a tax return, a penalty up to 50% of the tax due may be charged

See how easy it is to automate your sales tax filings.

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