Ohio Sales Tax Compliance
When it comes to tax laws, Ohio is one of the more painless states to understand, since they have little variation between rates. Ohio sales tax compliance has a state-level sales tax rate of 5.75%, and the state does not offer reduced rates. Businesses have two options: they will either be exempt from taxes, or they will collect and remit a 5.75% sales tax rate on all sales along with local jurisdiction rate, which we will explain later. Pretty straight-forward!
Ohio Sales Tax
When it comes time for taxpayers to file their tax returns, Ohio has three filing frequencies available. These filing frequencies include monthly, quarterly, and semi-annually. Ohio sales tax compliance requires all taxpayers, no matter their filing frequency, to file their returns by the 23rd of the month following the reporting period. If the 23rd of the month falls on a weekend or national holiday, then the correct due date for your return filings will be pushed back to the following business day.
Along with that, Ohio does require accelerated payments for taxpayers whose sales tax liability exceeds $75,000 annually. The accelerated payment is 75% of the average of the previous fourth month's tax liability. The previous month’s accelerated payment is subtracted from the current month’s total liabilities. Since all of Ohio’s sales tax laws are considered fairly simple, calculating the accelerated payment to be 75% of the average of the previous four months’ tax liability is probably the most difficult part of filing returns in the state of Ohio. Luckily, Ohio does offer a discount rate of 0.75% of the sales tax liability. This discount rate is relatively easy to calculate, and it isn’t capped.
Even though the sales tax laws in Ohio are generally uncomplicated, the state does have local taxing jurisdictions with varied rates. In fact, there are 92 different local taxing rates within Ohio. The local jurisdiction sales tax rate ranges from .05%-.3% combined with the states 5.75% sales tax rate. Fortunately for taxpayers, the total combined tax rate will never exceed 8.75%.
If you are curious to learn more information about Ohio sales tax compliance, make sure to visit Ohio’s Department of Taxation’s sales tax website.
Ohio Sales Tax Compliance Services
Agile’s experienced sales tax consultants can help by completing your company’s ongoing compliance filings in the state of Ohio. In fact, we’ve offered an outsourcing solution for this process since 2005. You can learn more about our outsourced
sales tax compliance services or simply give us a call at (888) 350-4829. We are interested to learn more about your needs, and you might be surprised how little it will cost to have a sales tax expert take this responsibility off your hands!
