1. What is Ohio Sales And Use Tax?

Ohio sales and use tax is a consumption tax imposed by the state of Ohio on the sale of goods and certain services. The state average rate is 5.75%, but actual rates vary by county with additional local taxes.

2. How Does the Calculator Work?

The calculator uses the Ohio sales tax formula:

Where:

• \( Tax \) — Sales tax amount in dollars
• \( Price \) — Purchase price in dollars
• \( 0.0575 \) — Ohio state average sales tax rate (5.75%)

Explanation: This calculation uses the state average rate of 5.75%. Actual rates may vary by county with additional local taxes.

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation is essential for budgeting, financial planning, business compliance, and understanding the true cost of purchases in Ohio.

4. Using the Calculator

Tips: Enter the purchase price in dollars. The calculator will compute the tax amount and total cost using Ohio's state average sales tax rate of 5.75%.

5. Frequently Asked Questions (FAQ)

Q1: Why use 5.75% as the tax rate?
A: 5.75% is the Ohio state average sales tax rate. This calculator provides a general estimate, but actual rates vary by county.

Q2: What items are taxable in Ohio?
A: Most tangible personal property is taxable, along with some services. Food for home consumption, prescription drugs, and certain medical devices are exempt.

Q3: How do county taxes affect the total rate?
A: Counties can add local sales taxes ranging from 0.25% to 2.25%, making total rates vary from 6.00% to 8.00% across Ohio.

Q4: What is use tax vs sales tax?
A: Sales tax is paid by the buyer at point of sale. Use tax is paid by the consumer when sales tax wasn't collected, typically on out-of-state purchases.

Q5: Are online purchases taxable in Ohio?
A: Yes, Ohio requires online retailers to collect sales tax on purchases delivered to Ohio addresses.