Key takeaways
- Ohio sales tax rates: The state rate is 5.75%, and county and transit taxes bring combined rates to roughly 6.5%–8%. SaaS is taxable when used in a business.
- Economic nexus: Remote sellers must collect once they exceed $100,000 in gross sales or 200 separate transactions into Ohio in the current or previous calendar year.
- Filing & penalties: Returns are due on the 23rd of the month after the period, with a 0.75% timely-filing discount. Late filing costs $50 or 10% of the tax due, whichever is greater.
Ohio sales tax key facts (2026)
| Item | Ohio |
|---|---|
| Statewide rate | 5.75% |
| Combined rate range | ~6.5%–8% |
| Economic nexus threshold | $100,000 or 200 transactions |
| Sourcing | Origin (in-state) / destination (remote) |
Collect and file Ohio sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes for business use.
| Item | Ohio |
|---|---|
| Groceries | Exempt (on-premises food taxable) |
| Timely-filing discount | 0.75% |
| Return due date | 23rd of the month after the period |
| Governing agency | Ohio Department of Taxation |
What is the sales tax rate in Ohio?
Ohio’s statewide sales and use tax rate is 5.75%. Counties and regional transit authorities add local taxes, bringing combined rates to roughly 6.5%–8% depending on location. Look up rates on the Ohio Department of Taxation site.
Do you have sales tax nexus in Ohio?
Nexus is the connection that obligates your business to collect and remit Ohio sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Ohio, such as:
- A physical presence such as a store, warehouse, or office
- Employees or agents regularly conducting business in the state
- Inventory stored in Ohio
Economic nexus
Out-of-state sellers establish economic nexus once they exceed $100,000 in gross sales or 200 separate transactions into Ohio in the current or previous calendar year. Either threshold triggers a collection obligation.
What is taxable in Ohio?
Tangible personal property, leases, and rentals are generally taxable, along with certain services. Most food for home consumption is exempt.
Is SaaS taxable in Ohio?
Yes, for business use. Ohio taxes SaaS as an automatic data processing or electronic information service when it’s used in a business. SaaS purchased purely for personal use is generally not taxable.
How is food taxed in Ohio?
Most food purchased for home consumption is exempt. Food sold at restaurants or for on-premises consumption is taxable at the full state-and-local rate.
How to register for an Ohio sales tax permit
Obtain a vendor’s license before collecting. Taxually can register for you, or you can apply online through the Ohio Business Gateway. Ohio-based sellers get a County Vendor’s License ($25 fee); out-of-state sellers register as sellers for free.
Have ready: business identification details, entity type, business locations, your start date for collecting, and your NAICS code.
How to collect sales tax in Ohio
Sourcing depends on who you are. Ohio-based sellers collect at the rate of their business location (origin-based) — for example, a business in Akron collects 6.75% (including Summit County’s tax). Out-of-state sellers with nexus collect based on the buyer’s location (destination-based).
Filing and paying Ohio sales tax
Filing frequency — monthly, quarterly, semi-annual, or annual — depends on your liability. Returns are due the 23rd of the month following the period (next business day if a weekend or holiday). Ohio offers a 0.75% timely-filing discount.
File and pay online through the Ohio Business Gateway or by mail using Form UST-1. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing: $50 or 10% of the tax due, whichever is greater.
- Failure to pay collected tax: a penalty of up to 50% of the tax due.
- Interest accrues on any unpaid tax.
Frequently asked questions
What is the sales tax rate in Ohio in 2026?
The state rate is 5.75%, with local taxes bringing combined rates to roughly 6.5%–8%.
What is the economic nexus threshold for Ohio?
$100,000 in gross sales or 200 separate transactions in the current or previous calendar year.
Is SaaS taxable in Ohio?
Yes, when used in business — Ohio taxes SaaS as an automatic data processing or electronic information service. SaaS for personal use is generally exempt.
Are groceries taxed in Ohio?
No, food for home consumption is exempt. Restaurant and on-premises food is taxable.
When are Ohio sales tax returns due?
The 23rd of the month following your reporting period.
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