Sales Tax

Sales Tax in Ohio: Complete Guide 2026

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Sales Tax in Ohio: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Ohio imposes a 5.75% state sales tax rate, with county-level permissive taxes adding up to 2.25% more. The combined rate varies by county, ranging from 6.50% to 8.00%, making county location a significant factor in your total sales tax burden. Ohio exempts most food for home consumption but taxes clothing, making it typical of Midwest states.

Ohio Sales Tax Rates (2026)

ComponentRate
State base rate5.75%
County permissive tax range0.75% — 2.25%
Average combined (state + local)~7.24%
Highest combined rate8.00%
Lowest combined rate6.50%

Combined Rates by Major County

County (Major City)Combined Rate
Cuyahoga (Cleveland)8.00%
Franklin (Columbus)7.50%
Hamilton (Cincinnati)8.00%
Summit (Akron)6.75%
Montgomery (Dayton)7.50%
Lucas (Toledo)7.25%
Butler (Hamilton)7.00%
Stark (Canton)6.50%

How Ohio Sales Tax Works

County-Based Local Taxes

Ohio’s local sales tax structure is county-based rather than city-based, which simplifies rate lookups compared to states with city-level variation. Each county board of commissioners may impose a permissive county sales tax of up to 2.25%. Counties also levy transit authority taxes where applicable.

The rate is based on the point of delivery for shipped goods and the point of sale for in-person transactions. This destination-based sourcing rule means buyers receive their county rate regardless of where the seller is located within Ohio.

Commercial Activity Tax (CAT)

In addition to sales tax, Ohio imposes a Commercial Activity Tax (CAT) on businesses with gross receipts exceeding $150,000. The CAT is 0.26% of taxable gross receipts and is not a sales tax charged to consumers, but it influences business pricing in the state.

What Is Taxable and What Is Exempt

Exempt from Sales Tax

  • Food for home consumption: Most grocery items including produce, meat, dairy, bread, and canned goods
  • Prescription drugs and medical equipment
  • Newspapers (but not magazines)
  • Motor vehicle fuel (subject to excise tax instead)
  • Residential utilities (electricity, natural gas for residential use)
  • Agricultural inputs (feed, seed, fertilizer, and farm machinery with valid certificate)

Taxable

  • Prepared food and restaurant meals
  • Candy and soft drinks (taxed at full rate)
  • Clothing and footwear (no exemption)
  • Electronics, furniture, appliances, and general merchandise
  • Building materials (including home improvement purchases)
  • Digital products: Ohio taxes electronically transferred software and certain digital goods. The treatment of streaming services and SaaS continues to evolve.
  • Certain services: Laundry, car washes, and personal care services are taxable. Most professional services are not.

Sales Tax Holiday

Ohio holds an annual sales tax holiday (typically the first weekend in August) exempting:

  • Clothing priced at $75 or less per item
  • School supplies priced at $20 or less per item
  • School instructional materials priced at $20 or less per item

Comparison to National Average

MetricOhioNational Average
State base rate5.75%~5.09%
Average combined rate~7.24%~6.60%
Grocery exemptionYes~32 states
Clothing exemptionNo (except holiday)~8 states
Residential utility exemptionYesVaries

Ohio’s combined rate is about 10% above the national average. The grocery and residential utility exemptions provide meaningful relief on essential household costs, but the lack of a clothing exemption increases the tax burden for families.

Tips for Minimizing Ohio Sales Tax Impact

  1. Shop in lower-rate counties for major purchases. The difference between a 6.50% county (Stark) and an 8.00% county (Cuyahoga) is $1.50 per $100 spent. On a $5,000 furniture purchase, that is $75 in savings.
  2. Take advantage of the sales tax holiday. Stock up on clothing and school supplies during the annual back-to-school weekend.
  3. Buy groceries for home preparation. The food exemption applies to unprepared grocery items. Deli items, salad bar purchases, and heated foods are classified as prepared food and taxed at the full rate.
  4. Track sales tax for federal deduction comparison. Ohio residents who itemize should compare their state income tax deduction to the sales tax deduction. For most Ohioans, the income tax deduction is larger, but those who made significant purchases (vehicle, home furnishing) should compare both methods.
  5. Use agricultural exemption certificates if eligible. Farmers and agricultural businesses can exempt feed, seed, fertilizer, and equipment from sales tax with a valid blanket exemption certificate.
  6. Understand the use tax obligation. Purchases from out-of-state sellers that do not collect Ohio tax are subject to Ohio use tax. This applies to online purchases from non-collecting sellers.

Key Takeaways

  • Ohio’s 5.75% state rate plus county permissive taxes produce combined rates ranging from 6.50% to 8.00%
  • Food for home consumption and residential utilities are exempt, but clothing is taxable
  • The county-based rate structure means location matters significantly for large purchases
  • An annual sales tax holiday provides limited relief on clothing and school supplies
  • The Commercial Activity Tax is a separate business tax that affects operating costs
  • Ohio uses destination-based sourcing, so the rate is determined by where goods are received

Next Steps