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Sourcing sales tax in Ohio: which rate to collect In others, sales tax is based on the location of the buyer and the destination of the sale (destination-based sourcing). Ohio uses both destination and origin sourcing.

Ohio is an origin-based sales tax state. So if you live in Ohio, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located. The state sales tax rate (and use tax rate) in Ohio is 5.75%.

Ohio has a 5.75 percent state sales tax rate, a max local sales tax rate of 2.25 percent, and an average combined state and local sales tax rate of 7.24 percent.

Ohio has a 5.75 percent state sales tax rate, a max local sales tax rate of 2.25 percent, and an average combined state and local sales tax rate of 7.24 percent. Ohio's tax system ranks 37th overall on our 2023 State Business Tax Climate Index.

The Ohio sales and use tax applies to the retail sale, lease, and rental of tangible personal property as well as the sale of selected services in Ohio. In transactions where sales tax was due but not collected by the vendor or seller, a use tax of equal amount is due from the customer.

Sales Tax Exemptions in Ohio Clothing. 5.75% Groceries. EXEMPT. Prepared Food. 5.75% Prescription Drugs. EXEMPT. OTC Drugs. 5.75%

So that would be the state-wide 5.75%, plus any local taxes if necessary. If you have more than one location in Ohio, then charge the sales tax rate of where the sale occurred. If you're not based in Ohio but have nexus in the state, you may charge only the 5.75% use tax rate.