Ohio Sales Tax and Use Tax
What is the Ohio sales tax?
Taxes in Ohio are origin-based 1, meaning the Ohio sales tax rate is based, or determined from, the location where a sale originates
To see a full breakout of Ohio sales tax rates by state, county, city and special district, use our easy Ohio sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Ohio sales tax totals.
What is the Ohio use tax?
The Ohio state use tax rate is the same as the state, county, city and special district rates.
If you reside in OH, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Ohio sales tax or use tax?
In general, a business must collect and remit all applicable Ohio sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Ohio says that an out-of-state seller is required to collect tax if they can be defined as "sellers with substantial nexus". Ohio does not currently have additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Ohio, you can usually get free help by contacting the Ohio Department of Taxation. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Ohio. Click here for listing of recommended resources.
Special rules applying to Ohio sales tax and use taxes
- Shipping is taxable.
- Finance charges are exempt from sales tax, when stated separately.
- Clothing is taxable, except for certain exemptions.
- Ohio Sales tax holidays are not planned for this state .
Since Ohio legislators can vote to change the Ohio sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of OH state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Ohio sales tax jurisdictions.