From August 1 at 12:00 a.m. through August 14 at 11:59 p.m., Ohio will hold an extended sales tax holiday. During this time, shoppers can purchase most tangible personal property priced at $500 or less without paying sales tax.
What Items Are Eligible
Most commonly purchased goods under the $500 threshold are included. Examples of tax-exempt items include:
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Electronics such as computers, televisions, and other devices
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All types of clothing and footwear
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Books, including novels and textbooks
- Sporting goods and athletic apparel
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Food and beverages, including restaurant meals, dietary supplements, and soft drinks
These examples are not exhaustive. Many additional items may also qualify for the exemption.
What Items Are Not Eligible
Certain categories remain taxable, regardless of price. These include, but are not limited to:
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Motor vehicles, watercraft, and outboard motors
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Alcoholic beverages
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Tobacco and vapor products
Special Rules to Know
Combined Sales of Taxable and Exempt Items
If a customer purchases both qualifying and non-qualifying items for a single, combined price, the full amount is taxable. However, if the items are listed separately on the receipt, only the qualifying items are tax-free.
Items Typically Sold Together
Products normally sold as a unit must be sold that way during the tax holiday. They cannot be separated and sold individually to qualify for the exemption.
Online and Remote Sales
Purchases made via mail, telephone, email, or the internet are tax-exempt if the order is placed and paid for during the holiday and the retailer accepts the order for immediate shipment. Delivery may occur after the tax holiday and still remain exempt.
Shipping and Handling Charges
If all items in a shipment are tax-exempt and meet the price requirement, shipping and handling fees are not taxable. If a shipment includes both exempt and taxable items, the seller must allocate shipping costs proportionally, and tax will apply to the portion related to the taxable items.
Returns and Exchanges
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If an item purchased tax-free during the holiday is exchanged for the same item after the holiday, sales tax does not apply.
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If an item is returned after the holiday and exchanged for a different product, sales tax must be charged on the new item.
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If an item purchased before the tax holiday is returned during the holiday and replaced with a qualifying product, the replacement is not subject to sales tax.
Information for Businesses
The Ohio Department of Taxation offers resources and guidance to help businesses comply with the expanded tax holiday. It is especially important for businesses to apply the rules correctly, as errors can result in penalties. Business owners are encouraged to review the guidelines and reach out to the Department with any questions.
Questions or Assistance
For more information, contact the Ohio Department of Taxation at 1-888-405-4039.
For text telephone users (TTY), call 1-800-750-0750.
Additional guidance and frequently asked questions are available on the Ohio Department of Taxation’s website under the Sales and Use Tax Holiday section.
