Ohio Sales Tax Holiday - Here's What You Need to Know

It’s Holiday Time!

Ohio expanded its state-wide sales tax holiday last year and it is back in a couple weeks. This holiday is for everyone - it is NOT just for people who need school supplies so please look at what is eligible below.

Do you have any purchases to make that are under $500? You might want to wait a couple weeks. Does your company need to adjust its sales tax collection over the holiday? You want to think about that now if you haven’t already.

• WHEN is the holiday? August 1 (12:00 AM) through August 14 (11:59 PM)
• WHAT are the eligible purchases? Almost all items that can be seen, weighed, measured, or touched that are priced at $500 or less.
• What is not eligible? Sales of services. Hotel stays. Also, watercraft or outboard motors, motor vehicles, alcohol, tobacco products, vapor products, marijuana products.

Examples of items that are usually taxable in Ohio but you can buy (or sell) tax-free over the holiday as long as they are $500 or less per item:

• Electronics: Computers, televisions, devices, smart watches
• Clothing: All clothing items
• Books: All books (including textbooks)
• Home Goods: Furniture, kitchenware, home décor
• Plants: Indoor plants, outdoor plants
• Sporting Goods: Equipment, uniforms
• Food and Beverages: Dine-in food, dietary supplements, soft drinks, pet food
• Other: Toys, luggage, musical instruments, personal care products, tires and other car parts, rental equipment, etc.

Some other things to remember:

• When purchasing items: Make sure you order the item and pay for the item within the state’s 2-week window above to get the tax-free price. You can receive the item after the holiday as long as it was ordered during the holiday.
• When selling items: Make sure an order is received, you accept the order, and the order is paid for within the state’s 2-week window to give customers the tax-free price. They can receive the item shortly after the window if it is being shipped.
• Combined sales: If you buy an item that meets the requirements above to be tax-free with an item that does not meet the requirements, they have to be separately stated on the invoice or receipt to receive the eligible item tax-free.
• Items usually sold together as a unit: They cannot be separated so parts of the unit can qualify for the tax-free status.
• Online sales: They will qualify as long as they meet the requirements above.
• Shipping costs: They are also tax-free if the item shipped is tax-free.

We’re here to help before or during the upcoming holiday if you have questions about your sales or your purchases.