From August 1–14, most items under $500 will be tax-free—here’s how your business and household can prepare.
Ohio Extends Its Sales Tax Holiday—Big Savings, Bigger Opportunities
Ohio’s popular Sales Tax Holiday is back with a broader scope and longer
duration. From 12:00 a.m. Friday, August 1 through 11:59 p.m. Thursday, August 14, 2025, Ohio shoppers can enjoy a two-week window during which most retail purchases of $500 or less are exempt from sales tax.
This extended tax holiday presents meaningful benefits for both consumers and businesses. Whether you're updating household essentials, stocking up on back-to-school supplies, or preparing your retail operations, the two-week window offers a chance to save—or strategize. For retailers, the holiday creates an opportunity to plan ahead for increased demand, ensure proper inventory levels, and align point-of-sale systems to meet customer expectations regarding exempt items.
What’s Included—and What’s Not
Most tangible goods under $500 are included, but there are some important exceptions and compliance considerations to keep in mind:
Included Items
- Books: All types, including novels and textbooks
- Clothing: Any apparel items
- Electronics: Computers, televisions, and other gadgets
- Food and Beverages: Dine-in food, dietary supplements, and soft drinks
- Home Goods: Furniture, kitchenware, and home décor
- Plants: Indoor and outdoor plants
- Sporting Goods: Equipment and apparel for sports
Excluded Items
- Alcoholic beverages
- Items containing marijuana
- Motor vehicles
- Tobacco products
- Vapor products
- Watercraft or outboard motors
Note: The list of exempt items provided above is not exhaustive. These are examples intended to illustrate the types of purchases that may qualify for the sales tax exemption. For a full list and additional details, please refer to the Ohio Department of Taxation’s Sales Tax Holiday FAQ.
Common Scenarios to Understand
- Bundled Pricing: If taxable and exempt items are sold together at one non-itemized price, the entire purchase is taxable.
- Items Sold as a Set: Sets (like dishware or power tool kits) must be sold as-is—no separating items to qualify under the price cap.
- Shipping Charges: If an order contains both taxable and exempt items, shipping must be proportionally taxed based on value.
- Exchanges & Returns:
- If you exchange an exempt item for the same one post-holiday, no additional tax applies.
- If you swap it for a different item, standard sales tax will be charged.
- Items returned that were originally taxed pre-holiday and replaced during the holiday with exempt items may be refunded the original tax.
How to Prepare Before August 1
For Businesses:
- Review and tag inventory to ensure eligible items are clearly labeled
- Update point-of-sale (POS) systems to apply exemptions correctly
- Train staff on handling split transactions and customer questions
- Communicate with customers in advance—online and in-store
For Consumers:
- Make a shopping list in advance to maximize your savings
- Shop early to avoid inventory shortages
- Ask retailers ahead of time how their systems handle exchanges and shipping
Partner with Meaden & Moore’s State & Local Tax Experts
Navigating sales tax holidays—and the nuances they bring—can be challenging. Whether you're managing retail compliance or prepping your internal teams, Meaden & Moore’s State and Local Tax (SALT) Team is here to help.
We offer proactive guidance to support you:
- Before the holiday with planning, inventory, and pricing reviews
- During the holiday with real-time insights and compliance clarity
- After the holiday with tax reporting, return scenarios, and audit defense
Have questions? Contact us today to make sure your business is ready to maximize the benefits of Ohio’s 2025 Sales Tax Holiday—while staying fully compliant.
For more updates and insights, be sure to check out our Ohio Tax & Advisory Resources.
