Ohio's sales tax rate and what it covers

Ohio charges a 5.75% state sales tax on most goods you buy in stores. When you buy something, that percentage is added to the price at checkout. Some counties and cities add their own local sales tax on top of the state rate, so your total can range from 5.75% to 8.5% depending on where you shop.

Sales tax in Ohio applies to tangible personal property — things you can touch and take home. Clothing, groceries, electronics, furniture, and gas all get taxed. Services usually do not: haircuts, car repairs, and plumbing work are generally tax-free. Food you eat at a restaurant is taxed, but groceries you buy at a supermarket to cook at home are not.

Key Takeaways

  • Ohio's base sales tax is 5.75%, but your actual rate depends on your county and city, ranging up to 8.5%.
  • Groceries and prescription medications are exempt from sales tax in Ohio, even though most other goods are taxed.
  • Services like repairs and haircuts are not subject to sales tax, but the same service performed on a tangible item (like shoe repair) may be.
  • Online purchases from out-of-state sellers are subject to Ohio sales tax if the seller has a physical presence or meets certain sales thresholds in the state.

What is exempt from Ohio sales tax

Certain items and categories are completely exempt. Groceries — food you prepare at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but anything requiring a prescription from a doctor is not.

Clothing and footwear under $20 per item are exempt. If you buy a shirt for $18, no tax. If you buy one for $25, you pay tax on the full amount. Some services are exempt too: medical services, dental work, and veterinary care do not have sales tax added. However, if you buy a physical product at a medical office — like bandages or crutches — that product is taxed.

Local sales tax rates by county

Ohio allows counties and cities to add their own sales tax on top of the 5.75% state rate. Franklin County (Columbus) adds 1.25%, bringing the total to 7%. Cuyahoga County (Cleveland) adds 1.5%, making it 7.25%. Some smaller counties add less or nothing at all, keeping the rate at the state minimum of 5.75%.

The rate you pay depends on where the sale happens, not where you live. If you buy something in a store in Hamilton County (Cincinnati), you pay Hamilton County's rate, which is 7.5%. If you order online and it ships to your home in Franklin County, you typically pay Franklin County's rate. The seller's location does not matter — the buyer's location does.

How sales tax works on online purchases

Online retailers must collect Ohio sales tax if they have a physical location in Ohio or if they meet certain sales thresholds set by state law. Large retailers like Amazon, Walmart, and Target collect Ohio sales tax on orders shipped to Ohio addresses. Smaller online sellers may not, depending on their sales volume and whether they have warehouses or offices in the state.

If you buy from an out-of-state seller who does not collect Ohio sales tax, you are technically responsible for paying use tax — which is the same rate as sales tax — when you file your state income tax return. In practice, most individual buyers do not report this, but it is the law. The Ohio Department of Taxation tracks large marketplace sales to identify sellers who should be collecting tax.

Sales tax on specific purchases

Gasoline is taxed at the pump. The price you see includes Ohio's sales tax plus state and federal fuel taxes. Vehicles are taxed when you register them with the Ohio Bureau of Motor Vehicles, not when you buy them from a dealer — the tax is based on the vehicle's value. Used cars are taxed the same way as new ones.

Prepared food — restaurant meals, takeout, and food from a deli counter — is taxed. Unprepared food from a grocery store is not. If you buy a rotisserie chicken from a grocery store deli, it is taxed because it is prepared. If you buy raw chicken from the meat counter, it is not. Alcohol and tobacco products are taxed at the sales tax rate, plus they have their own state excise taxes on top.

Who collects and where the money goes

The business selling you the item collects the sales tax and sends it to Ohio. Retailers file sales tax returns monthly or quarterly, depending on their sales volume. The state portion (5.75%) goes to the Ohio General Revenue Fund. The local portion goes to the county or city where the sale occurred.

Businesses are required to keep records of all sales and taxes collected. If a business fails to collect or remit sales tax, the Ohio Department of Taxation can audit them and assess penalties. Consumers do not file sales tax returns unless they are self-employed or operate a business — in that case, they may owe use tax on purchases they made for business purposes.

Frequently Asked Questions

Do I pay sales tax on clothes in Ohio?

Most clothing is taxed in Ohio. The only exception is clothing items under $20 per piece. A $15 shirt is tax-free, but a $25 shirt is taxed on the full amount. Accessories like belts, hats, and shoes follow the same $20 rule.

Is restaurant food taxed differently than grocery store food?

Yes. Food you buy at a grocery store to cook at home is not taxed. Food prepared and sold ready to eat — at restaurants, delis, or food trucks — is taxed at the full sales tax rate for your location.

What if I buy something online from a seller outside Ohio?

If the seller collects Ohio sales tax, it will be added at checkout. If they do not, you technically owe use tax when you file your state return, though most individuals do not report it. Large sellers are required to collect tax; smaller ones may not be.

Are prescription drugs taxed in Ohio?

No. Prescription medications are exempt from sales tax. Over-the-counter drugs like pain relievers or cold medicine are taxed as regular goods.

How do I know what the sales tax rate is in my area?

Your rate is determined by your county and city. You can find your exact rate on the Ohio Department of Taxation website by entering your zip code, or you can ask a cashier at any store in your area.