As an e-commerce seller, you will need to collect sales tax in Ohio if you have:
(1) Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year (economic nexus), or
(2) physical presence in Ohio (physical nexus).
Below, we will highlight some of the basic provisions of Ohio sales tax law.
What is the tax rate range for Ohio?
State: Ohio’s general sales tax rate is 5.75%.
Local: Ohio localities impose their own sales tax at rates ranging from 0.75% to 2.25%. Tax Rates & Changes
Do you have physical or economic nexus in Ohio?
Physical nexus. Certain business activities create physical nexus in Ohio. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Ohio. Examples of business activities that can create physical nexus in Ohio include:
- Has a store, showroom, distribution center in the state,
- Own or lease physical property in the state,
- Have inventory in the state, or
- Have employees present in the state.
Economic nexus. Remote sellers and marketplace facilitators that have gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year must collect and remit Ohio sales and use tax on taxable sales. Additional information:
- In spite of the “gross receipts” language, only sales which are considered retail sales are included in the threshold calculation.
- Sales of enumerated services are included in the threshold calculation, sales for resale are not.
- A marketplace seller would aggregate all sales and transactions into Ohio made through all marketplace facilitators as well as any Ohio sales that they make on their own when determining whether they meet the thresholds
- Although marketplace sales are included in the threshold calculation, a marketplace sell does not need to register in Ohio if all of its Ohio sales are made through a reporting marketplace provider.
- A marketplace facilitator must look to whether the marketplace facilitator, on its own behalf, and/or sales or transactions into Ohio it facilitates in the aggregate meet the thresholds. .
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Digital goods
- Food sold for on premise consumption
- Leases and rentals of tangible personal property
- Software as a Service (SaaS) for business use
What are examples of sales of nontaxable/exempt items?
- Food for human consumption off the premises where sold (except dietary supplements and soft drinks)
- Prescription drugs
- Property used directly in agricultural production
- Software as a Service (SaaS) for individual use
Are there any sales tax holidays?
Currently, Ohio has a sales tax holiday for clothing less than $75, and school supplies and school instructional materials less than $20. The sales tax holiday is for a three-day period on the first Friday of August and the subsequent Saturday and Sunday. See Sales and Use Tax - Sales Tax Holiday
Is Ohio a member of the SST (Streamlined Sales Tax)?
Currently, Ohio is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Ohio?
You can register online at: