State of Ohio Sales Tax The 2016 Ohio State Sales Tax

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What is the 2016 Ohio Sales Tax Rate?

Ohio Sales Tax Rate

5.75%

2016 Ohio state sales tax
Exact tax amount may vary for different items

The Ohio state sales tax rate is 5.75%, and the average OH sales tax after local surtaxes is 7.1%.

  • Groceries and prescription drugs are exempt from the Ohio sales tax
  • Counties and cities can charge an additional local sales tax of up to 2.25%, for a maximum possible combined sales tax of 8%
  • Ohio has 1424 special sales tax jurisdictions with local sales taxes in addition to the state sales tax
  • Ohio has a lower state sales tax than 63.5% of states

Ohio recently raised the state sales tax by 0.25% from 5.5% to 5.75%.

Counties and cities as well as mass transit districts in Ohio are allowed to charge an additional local sales tax on top of the Ohio state sales tax (up to a total sales tax rate of 8.5%). All non-prepared food (groceries) is exempt from the Ohio sales tax with the exemption of soda and alcohol, which is taxed at a rate of 7%. Any transactions involving goods, including internet transactions between a buyer and a seller in Ohio, are eligible to be taxed. Out of state sales by Ohio based companies are only taxed if the yearly sales volume of the company is over $4 million dollars (although all companies are also liable to pay for all sales through Ohio's gross receipts tax). If you do business within Ohio, you must apply for a Ohio Sales Tax Resale Certificate from the Ohio Department of Taxation.

If you are a Ohio business owner, you can learn more about how to collect and file your Ohio sales tax return at the 2016 Ohio Sales Tax Handbook .

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Ohio Sales Tax Exemptions

Ohio doesn't collect sales tax on purchases of most prescription drugs and groceries. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. For sales tax purposes, Ohio treats candy as a grocery, and does treat soda as a grocery. Other items including gasoline, alcohol, and cigarettes are subject to various Ohio excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The OH sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Ohio's sales tax rates for commonly exempted items are as follows:

Groceries: EXEMPT Clothing: 5.75% Prepared Food: 5.75% Prescription Drugs: EXEMPT Non-Prescription Drugs: 5.75%
Ohio sales tax for a restaurant meal
$100 Restaurant Dinner
Ohio sales tax for groceries
$100 of groceries
Ohio sales tax for clothing
$100 in clothes
Ohio sales tax for general consumer products
$100 of consumer products
$5.75 sales tax
$105.75 total
$0.00 sales tax
$100.00 total
$5.75 sales tax
$105.75 total
$5.75 sales tax
$105.75 total

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Ohio Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Ohio sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Ohio Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Ohio state sales tax exemption certificate, which can be obtained from the Ohio Department of Taxation . On making an exempt purchase, Exemption Certificate holders may submit a completed Ohio Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Ohio sales tax code) can be downloaded from the Ohio Department of Taxation here .

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Ohio Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Ohio retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Ohio sales tax calculator.

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Ohio Use Tax [View Main Article]

If you buy goods and are not charged the Ohio Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 5.75% sales tax (less any foreign sales tax paid) for these items yourself as the Ohio Use Tax.

Your are expected to voluntarily list your liable purchases on a Ohio Use Tax Return, which should be attached with payment to your Ohio Income Tax Return. Historically, compliance rates with with the Ohio Use Tax have been low.

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Ohio Local Sales Taxes

Ohio does not allow local jurisdictions like cities or counties to collect a local sales tax. The Ohio state sales tax of 5.75% is applicable statewide. You can view the sales tax rates for various cities in Ohio here.


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