Ohio’s Sales Tax Holiday!
Reminder: Ohio Sales Tax Holiday August 7 – August 9, 2026
Ohio’s Sales Tax Holiday for 2026 will be held from 12:00 a.m. on August 7, 2025, to 11:59 p.m. on August 9, 2025. This holiday aims to provide consumers with tax relief on qualifying purchases and stimulate economic activity by exempting certain items from sales tax.
Eligible Items
The 2026 sales tax holiday applies to the following items:
- Clothing priced at $75 or less per item.
- School Supplies priced at $20 or less per item.
- School Instructional Materials priced at $20 or less per item.
Exclusions
The following items are not eligible for the sales tax holiday in 2026:
1. Non-Eligible Items
Items exceeding the price thresholds listed above. Additionally, the exemption does not apply to watercraft or outboard motors requiring titling, motor vehicles, alcoholic beverages, tobacco products, vapor products, or marijuana-related items.
2. Business Purchases
Items purchased for use in a trade or business remain taxable, even if they fall within the price limits.
3. Services
The exemption does not apply to taxable services.
Special Considerations
- Multiple Purchases: There is no limit on the total number of items purchased, but each individual item must meet the price threshold (e.g., $75 for clothing) to be exempt.
- Price Thresholds: The exemption applies only to items at or below the price cap. For an item priced above the threshold, sales tax is due on the entire purchase price.
- Discounts and Coupons: If a discount or coupon reduces the price of an item to the qualifying threshold or below, the item becomes exempt.
- Online and Mail Orders: Orders placed and paid for during the holiday window qualify for the exemption, even if delivery occurs after August 9.
- Shipping and Handling: Shipping charges are generally considered part of the purchase price. If a shipment contains both exempt and taxable items, the shipping charges should be allocated proportionally.
- Layaway: Items placed on or deeply discounted for layaway during the holiday are exempt if they meet the price criteria.
Retailer and Consumer Guidelines
- Retailer Compliance: Retailers must adjust their systems to reflect the three-day window and the specific 2026 price thresholds ($75/$20).
- Consumer Refunds: Consumers who are mistakenly charged sales tax on exempt items during the holiday should seek a refund directly from the retailer.
Administrative Details
- Reporting: Retailers must continue to file and report all gross sales on the Ohio Sales and Use Tax Return (Form UST-1), properly identifying and separating taxable sales from the exempt sales made during the holiday window.
- Reimbursement: Ohio law explicitly states that there is no reimbursement or state compensation provided to vendors for any administrative costs, software updates, or adjustments made to point-of-sale (POS) systems to accommodate the holiday.
Summary
The 2026 Ohio Sales Tax Holiday from August 7 to August 9 is designed to help families save on essential back-to-school gear. Shoppers should keep the $75 and $20 price caps in mind to maximize their savings during this three-day event. Retailers and consumers are encouraged to review the official Ohio Department of Taxation guidelines for a full list of definitions for “clothing” and “school supplies.”
Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.
Questions?
Kristin specializes in tax services, particularly for pass-through entities and complex individual matters. Her clients span industries like dealerships, real estate, wholesaling, and professional services. Her approach goes beyond compliance, addressing clients’ pain points with a genuine care that ensures understanding, compliance, and strategic insights.