Sales Tax Holiday for 2025 will be held from 12:00 a.m. on August 1 until 11:59 p.m. on August 14.
Key Details
- Dates: August 1, 12:00 a.m. – August 14, 11:59 p.m.
- Eligible Items: Almost all tangible personal property priced at $500 or less is tax-free.
- Exclusions: The following items will still be taxed:
- Watercraft or outboard motors
- Motor vehicles
- Alcoholic beverages
- Tobacco products
- Vapor products
- Items containing marijuana
Examples of Tax-Exempt Items
- Electronics: Computers, televisions, and other gadgets
- Clothing: Any apparel items
- Books: All types, including novels and textbooks
- Home Goods: Furniture, kitchenware, and home décor
- Plants: Indoor and outdoor plants
- Sporting Goods: Equipment and apparel for sports
- Food and Beverages: Dine-in food, dietary supplements, and soft drinks
Note: These are just examples. Many other items will also be exempt from sales tax during this period.
Help for Businesses
The Ohio Department of Taxation is committed to helping businesses understand these changes. If you are a business owner and have questions, the department is available to assist you. It is important for businesses to properly apply the sales tax holiday rules to avoid penalties. The Department of Taxation focuses on educating vendors and small businesses about the new requirements.
How to Handle:
Sales of Both Exempt and Taxable Items
- If items that meet the exemption are sold with items that do not meet the exemption, for one non-itemized price, then the entire price is subject to sales tax.
- If the price of the exempt and taxable items is separately stated, then the sales tax exemption can be applied to the exempt items.
Items Normally Sold as a Unit
- Articles normally sold as a unit must be sold that way during the sales tax holiday. They cannot be priced separately and sold as individual items to qualify for the exemption.
Online Sales
- Qualified items sold to consumers by mail, telephone, e-mail, or Internet shall qualify for the sales tax exemption if the consumer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
Shipping and Handling
- If all items in a shipment qualify as eligible items and the sales price for each is within the sales tax holiday price threshold, the shipping and handling charges are not taxable.
- If the shipment includes exempt items and taxable items, the seller should allocate the shipping and handling charges by a percentage based on the total price of the taxable items to the total price of all the items in the shipment. The retailer must charge tax on the portion of the shipping and handling charges allocated to the taxable items in the shipment.
Exchanges and Returns
- If a consumer buys an eligible item during the sales tax holiday and later exchanges it for the same item, the retailer should not charge sales tax even if the exchange is made after the end of the sales tax holiday.
- If a consumer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, the retailer must charge sales tax on the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday.
- If a consumer buys an eligible item before the holiday period but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item. The retailer must provide the consumer credit for both the purchase price and sales tax paid on the item being returned.
Contact Information
If you have any questions, please contact the Ohio Department of Taxation at 1-888-405-4039.
For those using text telephones (TTY) or adaptive equipment, call 1-800-750-0750 to speak with a representative.
For more information and FAQs, visit the Ohio Department of Taxation's website: Sales and Use Tax Holiday FAQs