---
name: ohio-sales-tax
description: "Use this skill whenever asked about Ohio sales and use tax, ODT filings, Ohio CAT, Ohio exemptions, Ohio nexus, or any request involving Ohio state sales and use tax compliance. Trigger on phrases like \"Ohio sales tax\", \"OH sales tax\", \"ODT\", \"UST-1\", \"Ohio exemption certificate\", \"Streamlined Sales Tax Ohio\", or any request involving Ohio sales and use tax classification, filing, or compliance. ALWAYS read this skill before touching any Ohio sales tax work."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/ohio-sales-tax"
  jurisdiction: "US-OH"
  tax_year: "2026"
  last_updated: "2026-10-16"
  authored_by: "Michael Cutajar and the OpenAccountants team"
  trust_label: "Built by Michael Cutajar and the OpenAccountants team"
  review_status: "pending_review"
---

# Ohio sales and use tax: 2026 rates, sourcing, nexus, taxable services, exemptions and filing

Figures are for tax year 2026, as they stand on 25 September 2026. They come from the Ohio Department of Taxation at tax.ohio.gov. The Revised Code site (codes.ohio.gov) could not be reached when this skill was checked, so statute points below are taken from the Department's own pages and information releases, which quote or cite the Revised Code (Chapter 5739 for sales tax, Chapter 5741 for use tax). A short section near the end covers 2025 periods.

## Scope and who this is for

- Businesses that sell goods or taxable services in Ohio or to Ohio customers, and must decide what to charge, which county or transit rate applies, and how to file the UST-1.
- Out-of-state sellers and marketplace facilitators deciding whether they need an Ohio seller's use tax license.
- Businesses and individuals that owe use tax because no Ohio tax was charged on a purchase.
- Sellers accepting, and buyers giving, exemption certificates (STEC B, STEC U and the rest).
- Out of scope: the Ohio commercial activity tax (CAT), which is a separate tax on the seller's gross receipts; see the oh-cat skill. Also out of scope: motor vehicle, watercraft and outboard motor sales titled through the clerk of courts, the resort area gross receipts tax, the Next Generation 9-1-1 access fee, lodging taxes, and audit defense.

## Ask the client first

- Does the business have any physical presence in Ohio (store, office, warehouse, employees, inventory)? If so, it needs a vendor's license whatever its sales volume.
- If it is outside Ohio: in the current calendar year or the previous one, were its sales to Ohio customers over $100,000, or did it make 200 or more separate sales to Ohio customers? On what date was either test first met ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator))?
- Does it sell only through a marketplace (such as Amazon or eBay) that collects Ohio tax? Does it run a marketplace for other sellers?
- What exactly does it sell: goods, prewritten software, digital downloads, data processing or electronic information services, SaaS, or a service on Ohio's list (repair, installation, landscaping, janitorial, personal care, fitness and others)?
- Are its customers businesses or individuals? For computer and information services this decides taxability.
- Where are orders received, where are goods delivered, and where do customers first use a service?
- How many fixed selling locations does it have in Ohio, and does each have its own vendor's license?
- What filing frequency is on the account (monthly or semi-annual), and was its tax $75,000 or more in any calendar year ([ST 2007-06](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st200706))?
- Does it hold a complete exemption certificate for every exempt sale? Did it buy taxable items without paying Ohio tax?
- Has it ever filed or paid late, or failed to register when it should have?

## The method, step by step

1. **Decide whether the seller must be licensed.** A business with a fixed location in Ohio needs a county vendor's license for each location before making taxable sales. An out-of-state seller needs a seller's use tax license once it has substantial nexus (over $100,000 of Ohio sales, or 200 or more separate sales, in the current or previous calendar year) ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator)).
2. **Classify each sale.** Tangible personal property (which includes prewritten software, whether delivered on media or downloaded) is taxable unless an exemption applies. Services are taxable only if Ohio law lists them ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability)).
3. **Check exemption paperwork.** An exempt sale needs a certificate carrying all the required data elements (STEC B, STEC U, the SST certificate, or the MTC certificate for resale only) ([ST 2005-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2005-02exemptioncertificateforms)).
4. **Source the sale.** Goods sold by an Ohio vendor are sourced to where the order is received. Services, sales by out-of-state sellers and marketplace facilitator sales are sourced to where the customer receives the property or first uses the service ([ST 2009-03](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st-2009-03-sourcing)).
5. **Find the rate for that location.** State 5.75% plus the county and any transit authority rate, up to a combined 8.75%. Look the address up in The Finder or the current quarter's rate table; do not rely on a ZIP code alone ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax)).
6. **Charge tax on the full price**, including delivery charges on taxable items. Itemize any mixed taxable and nontaxable charges; if you do not, the whole charge is taxable ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability)).
7. **Accrue use tax** on your own untaxed purchases and on inventory taken out for your own use ([use tax](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/use-streamlined-vda)).
8. **File the UST-1 and pay by the 23rd** of the month after the period (next business day if the 23rd is a weekend or holiday), even with nothing to report. Take the 0.75% discount only if the return and full payment arrive on time, and apply the $750 cap ([ST 2025-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-02_vendor_timely_filing_discount_dec_2025)).

## Rates, sourcing and thresholds for 2026

### Rates ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax); [Q4 2026 rate table](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/rate-tables/by-county-q4-2026))

| Item | 2026 value | Condition |
| --- | --- | --- |
| State sales and use tax | 5.75% | On retail sales, leases and rentals of tangible personal property and on the listed services |
| County and transit authority tax | Up to 3% in total | Set in multiples of 0.05%. Only counties and regional transit authorities levy it |
| Maximum combined rate | 8.75% | The law's cap on state, county and transit tax combined |
| Highest rate in the Q4 2026 table | 8.25% | The part of Reynoldsburg in Licking County (COTA) |
| Use tax | Same rates | At the location of use |

- **Look up the rate, do not memorize a table.** Use The Finder (search by address, 9-digit ZIP or latitude and longitude). A 5-digit ZIP can cross county lines and return more than one jurisdiction.
- **Boundaries.** Rates almost always follow county borders. The exceptions are transit areas, such as the Central Ohio Transit Authority (COTA) area, which reaches into parts of Delaware, Fairfield, Licking and Union counties.
- **Changes happen quarterly.** A county or transit rate can change only on 1 January, 1 April, 1 July or 1 October. For example, Warren County rises from 6.75% to 7.25% on 1 October 2026. Sign up for the Department's sales tax e-mail alerts to hear of changes.

### Sourcing: which location's rate applies ([ST 2009-03](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st-2009-03-sourcing))

| Sale | Sourced to | Condition |
| --- | --- | --- |
| Goods sold by an Ohio vendor to an Ohio customer, in person or remotely (mail, phone, online) | Where the vendor receives the order | Not where the order is processed or shipped from. If the order is received outside Ohio, or the vendor does not capture where it was received, source it as a sale from outside Ohio (next row) |
| Goods sold by a transient vendor | Where the sale takes place | |
| Goods sold by an out-of-state seller | Where the customer receives the goods | If not known, use the customer's address in the seller's records |
| Services, whoever provides them | Where the customer receives (first uses) the service | For example the place a repaired item is handed back, where pests are removed, or the club where a member uses the membership |
| Sales facilitated by a marketplace facilitator | Where the customer receives the property or service | Except titled motor vehicles, watercraft and outboard motors. A facilitator's own direct sales with the order received in Ohio are sourced to where the order is received |
| Leases | Generally the primary location of the property when tax is due | Variations in the ST 2009-03 sourcing chart |
| Goods an Ohio vendor ships to customers outside Ohio | Not subject to Ohio tax | Check whether the destination state requires collection |

**The customer's position.** A customer who buys goods and pays Ohio tax at either the order-received rate or the delivery rate owes no more Ohio tax on that purchase. That relief covers goods only: for a service, the customer must pay use tax on any difference if the rate where the service is used is higher.

### Substantial nexus for out-of-state sellers ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator))

| Rule | 2026 position |
| --- | --- |
| Sales test | Total sales to Ohio customers over $100,000 (exactly $100,000 does not meet this test) |
| Transaction test | 200 or more separate sales to Ohio customers (exactly 200 does meet it) |
| Period | The current calendar year or the previous calendar year |
| Either test is enough | Meeting one test creates substantial nexus |
| In force since | 1 August 2019 |
| Physical presence | No threshold. A business with a physical location in Ohio must register however little it sells |
| When to start | The Department's example: a seller that reaches the threshold on 15 October must register, collect tax, and file its first return by 23 November |
| Marketplace-only sellers | No license is needed if every sale goes through a marketplace that collects and pays the Ohio tax |
| How to register | OH\|TAX eServices, or the Streamlined Sales Tax registration system. Businesses located outside the United States use the UT 1000 paper application |

Older nexus rules repealed by H.B. 166 (software nexus, network nexus and the commission-referral presumption) no longer apply.

### Marketplace facilitators ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator))

- **Who is one.** An entity (or its affiliate) that owns, operates or controls a physical or electronic marketplace and facilitates sales on it. It must do at least one thing from each of three groups: (1) the sale is of a taxable good or service used or received in Ohio (not hotel lodging); (2) it advertises, communicates the offer or acceptance, provides the infrastructure, fulfilment or storage, sets the price, handles customer service, or brands the sale; and (3) it collects the price, processes payment, collects and transmits payment to the seller, or provides virtual currency. An entity that only provides advertising is not a marketplace facilitator.
- **Threshold.** The same tests as other remote sellers, counting its own sales and the sales it facilitates together: gross receipts into Ohio over $100,000, or 200 or more separate transactions, in the current or previous calendar year.
- **Timing.** Collection, filing and remitting start on the first day of the first month at least 30 days after it establishes substantial nexus, and apply only from then on. The earliest possible start was 1 September 2019. The Department's example: the 200th transaction on 15 December 2019 means collection from 1 February 2020 and a first return due 23 March 2020.
- **Duties.** It is treated as the seller of every sale it facilitates: seller's use tax license, collection, returns and payment. The Department says it should keep one account for facilitated third-party sales and another for its own sales to Ohio customers.
- **Sourcing.** Facilitated sales are sourced to where the customer receives the property or service.
- **Online auction platforms** may be marketplace facilitators ([ST 2025-01](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-01_auctioneers_sept%2C2025)).

## What is taxable: boundary and exception table

### Taxable and nontaxable services ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability))

Only services listed in Ohio law are taxable. Common ones, and the conditions that matter:

| Service | Treatment | Condition or exception |
| --- | --- | --- |
| Repair and installation of goods | Taxable | Not taxable if the item repaired or installed is exempt. Parts permanently transferred to the customer are exempt to the provider |
| Landscaping and lawn care; snow removal | Taxable once the provider reaches $5,000 in a calendar year | Below $5,000 from that service in the year, no tax and no license. Once $5,000 is reached, collect on all future sales of that service. Each service is tested separately ([ST 2003-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2003-02-rev-march2026)) |
| Building maintenance and janitorial | Taxable once sales of the service equal or exceed $5,000 in a calendar year | Once reached, collect on all sales until the business stops; the $5,000 does not reset ([ST 2002-04](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2002-04-updated04.2025)) |
| Exterminating and pest control | Taxable | |
| Car washing, waxing, polishing; dry cleaning and laundry | Taxable | Coin-operated services excluded |
| Physical fitness facilities and recreation or sports clubs | Taxable | Gym and fitness memberships |
| Personal care services | Taxable | Facials, massages, tattoos, piercings, manicures, pedicures, tanning, cosmetic application. Haircuts, colouring and styling are not taxable. Massage prescribed by a physician, chiropractor or listed nurse is not taxable |
| Hotel lodging | Taxable | Stays under 30 days in a facility with five or more sleeping rooms |
| Storage; towing; private investigation and security | Taxable | Storage of goods for resale is not taxable |
| Motor vehicle rental; in-state passenger transport | Taxable | Exceptions for warranty and dealer-paid rentals, public transit and commercial airlines |
| Catering | Taxable | Off-premises catering: food exempt, beverages and rentals taxable |
| Delivery charges on taxable sales | Taxable | Shipping and handling are part of the price |
| Accounting, legal, consulting, financial advice, real estate, insurance agencies | Not taxable | If any tangible item is incidental and not separately charged |
| Employment and job placement services | Not taxable | Repealed as taxable services from 1 October 2021 ([tax alert archive](https://tax.ohio.gov/wps/portal/gov/tax/professional/ohtaxalert/taxalertsarchive/salesuse)) |
| Cable TV service | Not taxable | Equipment sales and rentals by the cable company are taxable; itemize |
| Internet access | Not taxable | Business use not taxable since 1 July 2020 (federal Internet Tax Freedom Act); personal use not taxable |
| Website creation | Not taxable | When billed as a personal service |

**Unsure whether a service is listed?** Do not default either way. Check the taxability page and the matching information release, or ask the Department (888-405-4039).

### Computer services, data processing, SaaS and digital products ([ST 1999-04](https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/ST1999-04_Online_Services_and_Internet_Access-rev9.22.pdf); [ST 2003-06](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st200306))

- **The rule.** Automatic data processing, computer services and electronic information services are taxable only when provided **for use in business**, and only when the customer's true object is the computer service itself rather than a personal or professional service to which the computer work is incidental. "Business" means any activity with the object of gain, benefit or advantage, but not managing and investing one's own funds.
- **Personal use.** The same service bought for personal use is not taxable. A provider may rely on the customer's representation of business or personal use unless it is unreasonable on its face, so ask at sign-up.
- **SaaS and online subscriptions.** Subscriptions to databases, vehicle history reports, résumé search, valuation tools, mass e-mail platforms and similar services used in business are taxable electronic information services. Bundles with vague descriptions are treated as mixed transactions and taxed in full.
- **True object.** Where an actual person provides professional work and the computer element is incidental, the charge is a nontaxable professional service. Digital advertising services are a personal or professional service, but electronic information service components bundled with them stay taxable.
- **Affiliates.** Transactions between members of an affiliated group (one member owns or controls another, for corporations more than 50% of the voting common stock) are not sales.
- **Sourcing and rate.** The rate where the benefit of the service is received, usually the customer's address. A business customer using a service or software at several locations at once can give a Multiple Points of Use certificate (STEC MPU).
- **Prewritten software** is tangible personal property and taxable whether bought for business or personal use and whether on media or downloaded. A reasonable, separately stated charge for modifying it to a customer's specifications is not part of the software. If the modification charge is not separately stated, the whole charge stays taxable.
- **Digital goods and streaming.** Downloaded e-books, music and movies, and streaming services, are taxable ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability)).

### Goods: selected points ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability); [ST 2004-01, food](https://tax.ohio.gov/portals/0/sales_and_use/information_releases/st200401.pdf))

| Item | Treatment | Condition |
| --- | --- | --- |
| Food for human consumption off the premises | Exempt | Food eaten on the premises (restaurants) is always taxable |
| Candy, chewing gum and breath mints | Exempt as food | Ohio treats them as food |
| Soft drinks | Taxable | Any sweetened nonalcoholic beverage, unless it contains milk or a milk substitute, or more than 50% fruit or vegetable juice. Powdered mixes are not soft drinks |
| Alcoholic beverages, dietary supplements, tobacco | Taxable | Alcohol means 0.5% or more alcohol by volume. A "Supplement Facts" label means a dietary supplement |
| Over-the-counter drugs | Taxable | Products with a "Drug Facts" label |
| Prescription drugs and doctor-prescribed medical equipment | Exempt | Prescription glasses and contacts exempt since 1 July 2019 |
| Feminine hygiene products; children's diapers; qualifying baby products | Exempt | Car seats, cribs and strollers must meet the safety standards in ST 2023-01 |
| Pet food | Taxable | Only food for humans is exempt |
| Clothing and footwear | Taxable | Except during the August sales tax holiday (below) |
| Manufacturing equipment and supplies | Exempt | Claimed with an exemption certificate |
| Goods shipped out of Ohio | Exempt | If delivered or transported out of state |
| Casual sales (garage sales, selling your own used items) | Exempt | Not if the seller is engaged in the business of selling, and never for titled motor vehicles, watercraft or outboard motors. A church or charity sale is exempt only if held on six or fewer days a year ([ST 2025-01](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-01_auctioneers_sept%2C2025)) |

**2026 sales tax holiday** ([sales tax holiday](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/sales-tax-holiday)): from Friday 7 August to Sunday 9 August 2026, each item of clothing priced at $75 or less, and school supplies and school instructional materials priced at $20 or less, are exempt. The price of each item decides; items normally sold together cannot be split, and partial exemptions are not allowed. Store discounts that bring the price under the limit count; manufacturer's coupons and rebates do not. Business purchases do not qualify. There is no expanded holiday on items of $500 and under in 2026.

**Mixed invoices, coupons and trade-ins** ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability)): an invoice mixing taxable and nontaxable items without itemization is taxable in full. Store and vendor coupons reduce the taxable price; manufacturer's coupons and rebates do not. A trade-in reduces the price only for new motor vehicles, and for watercraft and outboard motors traded through a licensed dealer.

### Exemption certificates ([exemption certificates](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/exemption-certificates); [ST 2005-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2005-02exemptioncertificateforms))

| Certificate | Use | Who it protects |
| --- | --- | --- |
| STEC U (unit) | One purchase | The vendor, if all data elements are present |
| STEC B (blanket) | A continuing claim on purchases from the same vendor | The vendor, if all data elements are present |
| STEC CC (construction contract) | Materials incorporated into real property under an exempt construction contract; signed by the contractor and the exempt contractee | The contractor too: if the contract later proves non-exempt, the contractee is liable |
| STEC CO (contractor's) | The same purchases, signed by the contractor only | The vendor only, not the contractor on audit |
| STEC MPU (multiple points of use) | Services or software available for concurrent use at several locations | The vendor |
| Streamlined Sales Tax certificate | Accepted in place of STEC U, STEC B, STEC MV, STEC WC, STEC CO and STEC MPU | The vendor |
| MTC Uniform Sales and Use Tax Certificate | Resale, or items incorporated into a product for sale, only | The vendor |

- **Form not mandatory.** Any certificate with all the required data elements lets the vendor accept it and stop collecting. Paper certificates need the buyer's signature; electronic ones do not.
- **Exempt buyers.** The United States, Ohio and its political subdivisions, other states that reciprocate, churches, 501(c)(3) organizations and veterans' organizations ([taxability](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/taxability)).
- **Direct pay permit holders** pay tax straight to the Department instead of to the seller; the SST certificate can notify the seller of this.

## Worked cases ([Q4 2026 rate table](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/rate-tables/by-county-q4-2026); [sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax))

1. **Ohio vendor shipping across counties.** A Canton retailer in Stark County (6.50%) takes a phone order at its store for an $800 television and ships it to a customer in Cleveland, Cuyahoga County (8.00%). Goods sold by an Ohio vendor are sourced to where the order is received, so it charges the Stark rate: $800 × 6.50% = $52.00. Because the customer paid tax at the order-received rate, the customer owes no additional use tax ([ST 2009-03](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st-2009-03-sourcing)).
2. **Remote seller over the transaction test.** An Oregon seller with no Ohio presence made 210 separate sales to Ohio customers in 2025, totalling $60,000. The sales test is not met ($60,000 is not over $100,000), but the transaction test is (200 or more). It has substantial nexus throughout 2026 on the previous-year test, needs a seller's use tax license (no fee) and must collect on its own website sales. A $500 order delivered to a customer in Cuyahoga County (8.00%) carries $500 × 8.00% = $40.00, sourced to the delivery address ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator)).
3. **SaaS: business or personal.** A Cleveland company pays $300 a month for a hosted CRM system its staff use in the business. The true object is the computer service, so it is a taxable service for use in business: $300 × 8.00% = $24.00 a month. An individual who subscribes to a hosted (not downloaded) personal-finance service for household use pays no Ohio tax on it; downloaded prewritten software would be taxable either way ([ST 1999-04](https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/ST1999-04_Online_Services_and_Internet_Access-rev9.22.pdf)).
4. **Vendor discount cap.** A vendor with one vendor's license reports $120,000 of tax on its March 2026 return, due 23 April 2026, and files and pays in full on time. The discount would be $120,000 × 0.75% = $900.00, but it is capped at $750 for the month, so it remits $120,000 − $750 = $119,250. Its November 2025 return, due 23 December 2025, was not capped: the same liability would have earned $900.00. Its December 2025 return, due 23 January 2026, is capped, because the cap applies to returns required to be filed on or after 1 January 2026. A business with three licenses on one return has a cap of $750 × 3 = $2,250 a month ([ST 2025-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-02_vendor_timely_filing_discount_dec_2025)).
5. **Small semi-annual vendor.** A vendor with one license and $1,500 of tax for January to June 2026 files by 23 July 2026. Its discount is $1,500 × 0.75% = $11.25, well under the six-month cap of $750 × 6 = $4,500 ([ST 2025-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-02_vendor_timely_filing_discount_dec_2025)).
6. **Sales tax holiday.** On Saturday 8 August 2026 a Columbus shopper (Franklin County, 8.00%) buys a $70 jacket and $80 shoes. The jacket is exempt ($75 or less). The shoes are over the limit and fully taxable: $80 × 8.00% = $6.40. The store cannot exempt part of the $80 ([sales tax holiday](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/sales-tax-holiday)).
7. **Janitorial start-up.** A new cleaning company bills offices through the year. Until its janitorial sales reach $5,000 in the calendar year it charges no tax and needs no license. From the point they reach $5,000 it must be licensed and charge tax on all its janitorial sales from then on, including in later years ([ST 2002-04](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2002-04-updated04.2025)).
8. **Late payment interest.** A monthly vendor owes $10,000 for March 2026, due 23 April 2026, and pays it 30 days late. It loses the discount. Interest at the 2026 rate is $10,000 × 7.0% × 30 ÷ 365 = $57.53. Any penalty is on top ([interest rates](https://tax.ohio.gov/individual/resources/interest-rates)).

## When to refuse or refer

- **Commercial activity tax.** The CAT is a separate tax on the seller's taxable gross receipts, with its own registration and quarterly returns. Use the oh-cat skill.
- **Penalty amounts.** The Revised Code (sections 5739.12 and 5739.133) sets late filing, late payment and assessment penalties. This skill could not verify the current amounts against codes.ohio.gov, so confirm them there or with the Department before quoting a penalty figure.
- **Audits, assessments, appeals and petitions for reassessment.** Refer to an Ohio CPA, EA or tax attorney.
- **Past non-compliance.** A business that should have registered but did not may qualify for the Voluntary Disclosure Program, but only if it applies before the Department contacts it (see Filing and payment). Refer for the application.
- **Complex bundled transactions, leases, and true object disputes** over computer and information services. The Ohio Supreme Court's decision in Cincinnati Fed. S. & L. Co. v. McClain (2022) changed how the Department reads the personal or professional services exception; refer if the answer turns on it ([ST 1999-04](https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/ST1999-04_Online_Services_and_Internet_Access-rev9.22.pdf)).
- **Motor vehicles, watercraft and outboard motors**, which are taxed at titling through the clerk of courts.
- **Construction contracts**, where the contractor usually pays tax on materials rather than collecting it; the STEC CC and STEC CO rules above decide who is liable.
- **Exactly at a threshold.** A remote seller at exactly $100,000 is not over the sales test; one at exactly 200 transactions does meet the transaction test. For a service provider at exactly $5,000, the two information releases word the test differently ("equals or exceeds" in ST 2002-04, "reach" in ST 2003-02); both read as "at least", but confirm with the Department before relying on it ([nexus FAQ](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-substantial-nexus-and-marketplace-facilitator); [ST 2002-04](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2002-04-updated04.2025); [ST 2003-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2003-02-rev-march2026)).

## Filing and payment

### Vendor's license ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax); [license fee change](https://tax.ohio.gov/wps/portal/gov/tax/home/news-and-events/all-news/2025-04-09-vendors-license-fee-change))

| License | Fee | Who needs it |
| --- | --- | --- |
| County vendor's license | $50 | Anyone selling taxable goods or services from a fixed location in Ohio. Each location needs its own license. Get it through OH\|TAX eServices or the county auditor |
| Transient vendor's license | $50 | Sales from temporary locations (shows, flea markets), vending machines on others' land, and lessors of motor vehicles, titled watercraft or titled outboard motors. Valid statewide |
| Out-of-state seller's use tax license | No fee | Sellers outside Ohio with substantial nexus. Not needed if every sale goes through a marketplace that collects |
| Direct pay permit; consumer's use tax account | No fee | Businesses paying tax directly to the Department |

- The $50 fee applies to new applications from 9 April 2025 (it was $25 before). The fee is not refundable.
- A license stays open until it is closed. Every licensed vendor must file a return for each period, including nil returns, until the license is closed through OH\|TAX eServices or TeleFile. A vendor who closes and later restarts needs a new license.

### Frequency and due dates ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax); [due dates](https://tax.ohio.gov/help-center/resources/duedates))

| Frequency | Who | Due |
| --- | --- | --- |
| Monthly | The default for vendors, transient vendors and out-of-state sellers | The 23rd of the following month |
| Semi-annual | May be authorized when tax is less than $1,200 per six-month period | 23 July (January to June) and 23 January (July to December) |
| Quarterly | Direct pay permit holders and consumer's use tax accounts with quarterly liability under $15,000 | 23 April, 23 July, 23 October, 23 January |

- **Weekends and holidays.** A due date on a weekend or holiday moves to the next business day. In 2026 the April return was due 26 May and the July return 24 August; the September 2026 return is due 23 October 2026 ([tax alert archive](https://tax.ohio.gov/wps/portal/gov/tax/professional/ohtaxalert/taxalertsarchive/salesuse)).
- **How to file.** OH\|TAX eServices, a Streamlined Sales Tax certified service provider, or TeleFile (only for a single-county vendor's license). On the UST-1, report all sales, including exempt sales, as gross sales on line 1, and exempt sales on line 2.
- **Electronic payment and accelerated payments** ([ST 2007-06](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st200706)). A vendor whose tax for a calendar year is over $75,000 must pay by electronic funds transfer from the second following year (the Department's pages say "over" and "exceeds"; the statute text quoted in ST 2007-06 says "equals or exceeds", so treat exactly $75,000 as in). It must also pay at least 75% of each month's expected tax by the 23rd of that same month, with the balance due with the return on the 23rd of the next month. If an accelerated payment falls short, the Commissioner may add a charge of up to 5% of the unpaid amount. That charge does not apply if the accelerated payment was at least 75% of the tax reported for the same month of the previous year.

### Vendor discount ([ST 2025-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-02_vendor_timely_filing_discount_dec_2025))

- **Rate.** 0.75% of the tax liability on line 6 of the UST-1.
- **Condition.** Only if the return and full payment are received by the Department on or before the due date.
- **Cap (H.B. 96, the 2025 budget).** $750 per vendor's license for each month covered by the return, for returns required to be filed on or after 1 January 2026. A semi-annual return covers six months, so its cap is six times $750 per license.
- **Motor vehicles.** The cap does not apply to the sale or lease of motor vehicles. When the liability on a return is more than $100,000, OH\|TAX eServices asks whether any of it comes from leasing motor vehicles, so that it can be left out of the cap.

### Use tax ([use tax](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/use-streamlined-vda))

- Owed by the buyer when tax was due but not collected: out-of-state and online purchases, items bought exempt and then used in a taxable way (including inventory taken out for temporary use), and goods bought outside Ohio untaxed and brought in by a construction contractor.
- Businesses with regular untaxed purchases open a consumer's use tax account and file the UUT-1 monthly or quarterly, by the 23rd after the period. Infrequent buyers can pay with the Ohio income tax return or form VP USE.
- A nonresident business that brings goods into Ohio for temporary use pays use tax on the value of that use.

### Interest, penalties and enforcement ([interest rates](https://tax.ohio.gov/individual/resources/interest-rates); [use tax, VDA and HOP](https://tax.ohio.gov/wps/portal/gov/tax/business/sales-and-use-tax/use-streamlined-vda))

- **Interest.** 7.0% a year for 2026 (8.0% for 2025), simple interest: tax × rate × days late ÷ days in the year. The Tax Commissioner certifies the next year's rate by 15 October, as the federal short-term rate plus three percentage points.
- **Penalties.** Late filing, late payment and assessment penalties are set by the Revised Code; see "When to refuse or refer". A late return also loses the vendor discount.
- **Voluntary Disclosure Program.** Available only before the Department contacts the business. The lookback is usually 36 months, with penalties removed if tax was not collected. Tax that was collected but not remitted is due in full with no lookback limit, plus a 10% penalty. The signed agreement is due within 60 days.
- **Habitual Offender Program.** A business that fails to file or pay for three or more months in a 12-month period, or two months in a row, can be monitored; further failures lead to suspension of the vendor's license, and no sales may be made under a suspended license.
- **Refunds.** File form ST AR within four years of the payment.

## 2025 periods (for amended, late or audited 2025 returns) ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax); [interest rates](https://tax.ohio.gov/individual/resources/interest-rates))

- The state rate was 5.75% throughout 2025. County and transit rates changed on 1 April, 1 July and 1 October 2025; use the 2025 quarterly rate tables linked from the sales and use tax page.
- Returns required to be filed before 1 January 2026 took the full 0.75% discount with no cap. The December 2025 monthly return and the July to December 2025 semi-annual return were due on 23 January 2026, so they are capped ([ST 2025-02](https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/st2025-02_vendor_timely_filing_discount_dec_2025)).
- Interest on tax overdue during 2025 runs at 8.0%.
- A new vendor's license cost $25 until 9 April 2025 and $50 from then on.
- This skill did not check the 2025 sales tax holiday limits; do not apply the 2026 limits to a 2025 sale without checking.

## Completion checklist ([sales and use tax page](https://tax.ohio.gov/business/sales-and-use-tax))

- [ ] Nexus decided: physical presence, or over $100,000 or 200 or more sales in the current or previous calendar year; date first met recorded.
- [ ] Correct license held: one county vendor's license per fixed location, a transient license, or a seller's use tax license; marketplace-only sellers checked.
- [ ] Every product and service classified against the taxability page; business-use test applied to computer and information services.
- [ ] Each sale sourced (order received, delivery, or where the service is used) and the rate taken from The Finder for that quarter.
- [ ] Delivery charges included; mixed invoices itemized.
- [ ] Exemption certificates complete for every exempt sale; MTC certificates used only for resale.
- [ ] Use tax accrued on untaxed purchases and inventory taken out for use.
- [ ] UST-1 filed by the 23rd (moved for weekends and holidays), with exempt sales on line 2.
- [ ] Discount taken only if on time, and capped at $750 per license per month.
- [ ] Electronic and accelerated payments made if tax was $75,000 or more in a calendar year.
- [ ] CAT considered separately (oh-cat skill).
- [ ] Any late period: interest at 7.0% (2026) computed, penalties confirmed against the Revised Code, and VDA eligibility considered before any Department contact.

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## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
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[openaccountants.com](https://www.openaccountants.com).

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> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-16. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `ohio-sales-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ohio-sales-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.