State taxing authority: Ohio Department of Taxation 2023 Ohio sales tax rate: 5.75% Local sales tax rates? Yes Streamlined Sales and Use Tax Agreement Member? Yes Do I have to collect Ohio sales tax from customers?
Retailers who meet these two requirements are required to collect sales tax in Ohio:
Has sales tax nexus in Ohio
Sells taxable products or services in Ohio
What creates sales tax nexus in Ohio?
Ohio refers to retailers as “vendors.” Vendors have economic nexus when they have:
Physical presence - A store, office, warehouse, employee, contractor or other physical connection to the state OR
- Your sales into Ohio exceeded $100,000 or your business had 200 or more separate transactions with buyers in Ohio during the previous or current calendar year Economic nexus
more about sales tax nexus and when that means you’re required to collect sales tax here. Do I have to collect sales tax from Ohio customers if I sell on Amazon, Walmart, eBay or Etsy?
No. Ohio has a marketplace facilitator law, meaning that 3rd party marketplaces such as Walmart or Amazon are required to collect sales tax on behalf of 3rd party sellers selling on the marketplace.
If you have sales tax nexus in Ohio, keep in mind that you are still required to collect sales tax on your other, non-marketplace, Ohio sales.
more about marketplace facilitator sales tax laws here. Are my products taxable in Ohio?
Most tangible personal property is subject to sales tax. However, some necessities like food, clothing and medication are not taxable in some states. And sometimes states consider things like digital goods (eBooks, music, movies) and software-as-a-service (SaaS) taxable even though they can’t be touched or held.
Here’s how Ohio taxes the most commonly sales tax exempt items:
Are groceries taxable in Ohio?
No. Groceries are not subject to Ohio sales tax. Is clothing taxable in Ohio?
Yes, clothing is taxable in Ohio. Are digital products taxable in Ohio?
Yes, digital goods such as e-books are taxable in Ohio. Is software-as-a-service (SaaS) taxable in Ohio?
SaaS for business use is taxable in Ohio, but SaaS for personal use is non-taxable. Are services taxable in Ohio?
Some services are taxable in Ohio. According to the Ohio Department of taxation, taxable services include:
1-900 telephone numbers that provide information services
Automatic data processing for use in a business (including internet access charges and email service charges)
Hotel room rental
Installation of tangible personal property (unless that property is exempt from sales tax)
Landscaping and lawn care
Laundry and dry cleaning services
Personal care - skincare, massage, manicures, pedicures, tattoos, tanning, etc.
Physical fitness facilities
Private investigation services or security services
Production of tangible personal property from material supplied by the customer. (Ex: a tailor creating clothing using material provided by the customer)
Recreation and sports clubs
Repair of tangible personal property (unless that property is exempt from sales tax)
Satellite broadcasting services
Storage of tangible personal property
Telecommunication services (with some exceptions)
Transportation (except public transit systems or commercial airlines)
How to Register for a Ohio Seller's Permit
Register for an Ohio seller's permit online at the
Ohio Department of Taxation.
Go here to learn
how to register for a seller's permit in every US state. Do I need a Ohio seller's permit if I’m only a wholesaler?
Ohio Department of Taxation to inquire about seller's permits for wholesalers. Do I need a Ohio seller's permit if I only sell temporarily in the state?
Vendors who only sell irregularly in Ohio, such as at a tradeshow or craft fair, can apply for a
Transient Vendor’s License at the Ohio Business Gateway. The fee for this license is $25. How to Collect Sales Tax in Ohio
How to Collect Sales Tax on Intrastate Ohio Sales
A sale is considered intrastate if it ships from an origin in Ohio to a buyer address in Ohio.
Ohio is an “
origin-based” sales tax sourcing state. This means that if you make a sale originating in Ohio and the buyer’s ship-to address is also in Ohio you would charge the sales tax rate at the sale’s origination point.
Example: Your business is located in Canton, Ohio and you make a sale to a buyer in Wooster, Ohio. You’d charge the buyer the sales tax rate at your Canton,Ohio location.
How to Collect Sales Tax on Interstate Ohio Sales
A sale is considered “interstate” if the item ships from outside Ohio and the seller isn’t otherwise “engaged in business” in the state.
For sales that don’t originate in Ohio, you’d charge the sales tax rate at your buyer’s location.
Example: Your business is located in Beaufort, South Carolina and you make a sale to a buyer in Mason, Ohio. You’d charge the buyer the combined total Mason, Ohio sales tax rate.
Should you collect sales tax on shipping charges in Ohio?
Yes, shipping and delivery charges are taxable in Ohio.
sales tax on shipping in every US state here. How to File and Pay Sales Tax in Ohio
When your sales tax filing due date approaches, you can file Ohio sales tax returns in multiple ways.
File and pay online - Ohio requires electronic sales tax filing through the Ohio Business Gateway. You can pay the sales tax owed via ACH debit, ACH credit or credit card.
Telefile - Telefile in Ohio by calling 1-800-697-0440. Available to vendors who have a regular county vendor’s license number which begins with 01 through 88.
so you never have to look at a sales tax return again! Let Zamp handle your Ohio sales tax filing and remittance
how to file and pay sales tax in other US states here. I didn’t collect any Ohio sales tax this period. Do I still need to file a return?
Yes. You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.
What is the penalty for filing and/or paying Ohio sales tax late?
The penalty for late
filing sales tax in Ohio is 10% of the tax due or up to $50.
The penalty for late
payment of sales tax in Ohio is up to 50% of the tax due plus potential interest.
There is also a $50 charge per check for returned checks.
Can I get an extension on filing my Ohio sales tax return?
Ohio Department of Taxation to inquire about sales and use tax filing extensions. Can I amend an Ohio sales tax return?
Yes, you can amend a previously filed sales tax return through the
Ohio Business Gateway. How often will I be required to file and pay sales tax in Ohio?
How often Ohio requires you to file sales and use tax depends on your annual sales tax liability.
Sales Tax Filing Frequency Sales Tax Filing Criteria Semi-annually Tax liability is less than $1,200 per six-month period Quarterly Less than $15,000 in quarterly tax liability (only applies to Direct Pay Permit Holders and Consumer Use Tax Account Holders) Monthly All other taxpayers. (Taxpayers whose annual sales tax liability exceeds $75,000 will be required to make accelerated and final payments, too.) Ohio sales tax due dates
Ohio Monthly Sales Tax Filing Due Dates
Taxable Period Filing Due Date January 2023 February 23, 2023 February 2023 March 23, 2023 March 2023 April 24, 2023 April 2023 May 23, 2023 May 2023 June 23,2023 June 2023 July 24, 2023 July 2023 August 23, 2023 August 2023 September 25, 2023 September 2023 October 23, 2023 October 2023 November 23, 2023 November 2023 December 26, 2023 December 2023 January 23, 2024 Ohio Quarterly Sales Tax Filing Due Dates
Taxable Period Filing Due Date Q1 (Jan-March) 2023 April 24, 2023 Q2 (Apr-June) 2023 July 24, 2023 Q3 (July-Sept) 2023 October 23, 2023 Q4 (Oct-Dec) 2023 January 23, 2024 Ohio Semi-Annual Sales Tax Filing Due Dates
Taxable Period Filing Due Date January 1-June 30 July 23, 2023 July 1-December 31 January 23, 2024