Sales Tax in Ohio: A Complete Guide for Ecommerce Sellers

Ohio is an SST member state with a $100,000 or 200 transaction threshold and a 5.75% state rate with county additions. Ohio’s 88 counties each set their own sales tax rate (there are no city-level additions) making the county the key rate-determining jurisdiction. Combined rates range from 6.5% to 8% across Ohio counties.

Quick reference

Economic nexus

Ohio uses an OR threshold: $100,000 in sales OR 200 transactions into Ohio in the prior calendar year. Either condition, if met alone, triggers the registration requirement.

Ohio enacted its economic nexus law effective August 1, 2019.

Physical nexus

Physical presence in Ohio creates nexus without any threshold:

• Warehouse, office, or storage facility in Ohio
• Amazon FBA inventory in Ohio fulfillment centers
• Employees, agents, or independent contractors in Ohio
• Sales representatives in Ohio

Registration

Ohio is an SST member state. Register through a Certified Service Provider (CSP) like TaxCloud for simultaneous registration in Ohio and all other SST states at no charge.

Sellers can also register directly with the Ohio Department of Taxation through the Ohio Business Gateway (business.ohio.gov). No registration fee.

Tax rates

State rate: 5.75%

County additions: Each of Ohio’s 88 counties levies an additional county rate. County rates range from 0.75% to 2.25%, for combined rates of 6.5% to 8%.

Notable county rates:

• Cuyahoga (Cleveland): 2.25% county addition = 8% combined
• Franklin (Columbus): 1.75% = 7.5% combined
• Hamilton (Cincinnati): 1.25% = 7% combined
• Montgomery (Dayton): 1.75% = 7.5% combined
• Summit (Akron): 1.0% = 6.75% combined

There are no city or municipal sales taxes in Ohio: the county rate is the only local addition.

What’s taxable

Generally taxable: Electronics, clothing, furniture, sporting goods, toys, most tangible personal property.

Generally exempt:

• Prescription medications
• Food for human consumption (groceries — Ohio broadly exempts food)
• Agricultural supplies and equipment
• Manufacturing equipment used directly in production
• Services (Ohio taxes a narrower range of services than many states)

Notable Ohio rules:

• Clothing: Taxable in Ohio, no clothing exemption
• Digital products: Ohio taxes specified digital products, including downloaded software and digital audiovisual works
• Food: Ohio broadly exempts food for human consumption. Candy and soft drinks are taxable (not treated as exempt food). Dietary supplements are taxable

Shipping taxability

Ohio taxes delivery charges when the shipped goods are taxable. Separately stated shipping charges for exempt goods are not taxable. Ohio follows the standard rule: taxability of the shipped item determines taxability of the delivery charge.

Marketplace facilitator rules

Ohio enacted marketplace facilitator legislation effective August 1, 2019. Qualifying marketplace facilitators collect and remit Ohio sales tax on marketplace-facilitated sales.

Remote sellers with no Ohio physical nexus whose only Ohio sales are through marketplace facilitators may not need to separately register. Sellers with Ohio physical nexus must register regardless of marketplace collection.

State-specific notes

County-only local taxes: Ohio’s local rate structure is simpler than states with city and special district layers: the county rate is the only local addition. With 88 counties, rates still vary significantly across the state, but the structure is more predictable than states with multiple overlapping jurisdictions.

SST membership: Ohio’s SST membership makes registration straightforward for sellers with multi-state nexus. One CSP application registers you in Ohio and all other SST states simultaneously.

Sales tax holiday: Ohio periodically holds a back-to-school sales tax holiday in August for clothing items under $75 and school supplies under $20. The holiday has been authorized in recent years but should be verified for the current year.