Ohio’s Sales Tax Holiday Is Back—But the Rules Have Changed

Ohio’s annual sales tax holiday returns August 7–9, 2026, but retailers should not assume this year’s event will operate like the last two years.

The 2026 holiday marks a return to Ohio’s traditional three-day back-to-school sales tax holiday after the expanded exemption periods offered in 2024 and 2025. Not only has the holiday been shortened, but the range of qualifying purchases has also been significantly reduced.

What Changed?

During the last two years, most tangible personal property priced at $500 or less qualified for the sales tax exemption over an extended holiday period. That broad exemption has been eliminated.

This year, only the following items qualify:

• 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

Retailers Should Review Their Systems

Because many consumers remember last year’s expanded holiday, retailers should expect questions at checkout.

Before August 7, businesses should:

• Verify point-of-sale systems correctly apply the exemption only to qualifying items.
• Ensure employees understand which items qualify and the applicable price limits.
• Remember that the exemption is determined item by item, not based on the total purchase price.
• Confirm that retailer discounts are properly applied before calculating the sales tax.

Avoid Customer Confusion

Many items that were exempt during the expanded holidays, including most general merchandise priced under $500, are taxable again in 2026. Sports equipment, business-use purchases, and taxable services also remain taxable.

With back-to-school shopping generating heavy traffic over the three-day weekend, understanding the changes and proper preparation can help retailers avoid pricing errors, customer disputes, and unnecessary compliance issues.

If you have questions as you prepare for the sales tax holiday or need assistance with your Ohio sales tax reporting after the holiday, our office is available to help.

Schedule an appointment to learn how we can support you

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