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Ohio’s 2025 Sales Tax Holiday: What Businesses Need to Know
Sue Schloemer
Jun 20, 2025
Dates: The Ohio sales tax exemption runs from 12:00 a.m. on Friday, August 1, 2025, through 11:59 p.m. on Thursday, August 14, 2025. This is the first time the sales tax holiday will be in effect for two full weeks.
Eligible Goods: Most tangible personal property priced at $500 or less per item is exempt from Ohio sales tax during the sales tax holiday. Examples of qualifying items include: clothing, electronics, appliances, home goods, sporting gear, personal care items, school and office supplies, soft drinks, and dine-in food.
Exemptions Do Not Apply To
- Items priced over $500
- Motor vehicles and certain watercraft
- Alcoholic beverages, tobacco, vapor products, items containing marijuana
- Services (except certain separately stated repair or installation services)
Why This Matters for Your Business
- Participation is mandatory: All sellers of qualifying goods must comply – no opt-out is allowed
- $500 per-item rule: Each item’s selling price determines exemption eligibility. Any item sold for more than $500 is fully taxable
- Bundled or mixed transactions: Items bundled as a single non-itemized sale are fully taxable. Exemptions apply only if qualifying items are separately listed on receipts
- Items sold as a unit: Items typically sold as a single unit (e.g., a pair of skis) cannot be split to meet the $500 threshold
Key Operational Steps
- Update POS and e‑commerce systems
- Ensure systems apply item-level sales tax rules by August 1
- Program shipping charges to be prorated for orders with mixed taxability
- Staff training
- Educate on qualifying items, mixed transactions, refunds, and proper receipt formatting
- Inventory and pricing review
- Audit SKUs for applicability and clearly label eligible items
- Anticipate higher demand and adjust stock levels accordingly
- E‑commerce timing
- Confirm online orders are placed and paid within the sales tax holiday window—delivery can occur later
- Reporting and documentation
- Report exempt sales separately on your August sale and use tax return
Opportunities for Your Business
- Marketing boost: Promote the tax-free savings to attract customers
- Drive volume: The sales tax exemption also applies to business-to-business purchases —use this to your advantage
Action Plan (Now Through August 1)
- Complete system reviews, inventory checks, and staff briefings
- Run test transactions (in-store & online) to confirm correct pricing and receipt formatting
- Launch customer promotions (“Tax-free savings start August 1st!”) and reinforce staff readiness
Need Help?
Our team is monitoring state guidance and is ready to support your planning and compliance needs. You can also reference the latest from the state:
With pre‑holiday readiness, you can turn compliance into opportunity—boosting customer goodwill and potentially increasing revenue during the tax holiday.
Schedule an appointment to learn how we can support you
© Copyright 2025. All rights reserved.
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About The Author
Sue enjoys helping clients succeed. Her breadth and depth of accounting knowledge combined with over 25 years of…
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