Ohio is an origin-based state (sales are taxed where the seller is located).
Businesses are required to file electronically in one of two ways:
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.
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.
A business is considered to have established a tax presence in the state if it:
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.
Your filing frequency will be determined based on amount of tax liability as follows:
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.
You must register to collect sales tax in the state by obtaining a vendor’s license.
This can be done in two ways:
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: