Sales Tax Rules
Ohio imposes a state sales tax rate of 5.75%, with a maximum combined rate (state plus local) of 8% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Ohio sales tax. SaaS and digital software products are taxable in Ohio. Groceries are exempt from state sales tax.
SaaS Tax Details
Taxable for business use as electronic information services.
Grocery Details
Food for human consumption off-premises is exempt.
What is the sales tax rate in Ohio?
Ohio's state sales tax rate is 5.75%. When local taxes are added, the maximum combined rate can reach 8%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Ohio?
Ohio requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Ohio sales tax.
Is SaaS taxable in Ohio?
Yes. Ohio considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Ohio customers must collect sales tax. Taxable for business use as electronic information services.
Are groceries taxed in Ohio?
Groceries are generally exempt from sales tax in Ohio. Food for human consumption off-premises is exempt.
Are digital goods taxable in Ohio?
Yes. Ohio taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Ohio customers should collect sales tax.
Are clothing items exempt from sales tax in Ohio?
Clothing is subject to sales tax in Ohio at the standard state rate.
How often do I need to file sales tax in Ohio?
Ohio requires sales tax filing on a Monthly or Semi-Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Ohio Department of Revenue
Last verified: 2026-03-25 · Always confirm current rates with your tax advisor before filing.