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Ohio Sales Tax Exemptions

Generally, Ohio sales tax exemptions fall into two categories: products and services that are exempt from sales tax and entities that are exempt from sales tax.

Tax-exempt organizations can buy otherwise taxable goods without paying sales tax. These include churches, governmental entities, nonprofits, and educators, among others. You can also take advantage of Ohio sales tax exemptions if you are buying farming or fishing equipment. The state also exempts motor racing vehicles and related equipment and repairs from OH sales tax. Wholesale sales, of course, are also tax exempt in Ohio.

Casual sales are another category of Ohio sales tax exemptions. This exemption applies to people who aren’t in the business of retail sales but might sell something every once in awhile. So if you sell your sofa on Craigslist and don’t charge sales tax, you’re good. Ohio has your back.

The other category of Ohio sales tax exemptions covers goods that are always nontaxable no matter who is buying them. This includes groceries, refundable deposits on bottles and cans, and newspapers (remember those?).

Ohio sales tax exemptions cover some services but many others are taxable. You need to charge sales tax on pedicures but not hair cuts, extermination services but not insurance services. If you provide a service in Ohio, check the Department of Taxation website for a complete list of taxable and nontaxable services.

If you have nexus in Ohio and you have any doubts about whether one of the Ohio tax exemptions might apply to you, it’s a good idea to do more research. As the state’s website says:

The statutes and rules concerning sales tax exemptions are very long and complicated. Also there are hundreds of court decisions which affect the application of these exemptions. If you have any questions regarding a particular situation, please contact the Department of Taxation.

Avalara Author
Laura McCamy
Avalara Author Laura McCamy