OH Sales Tax 101 Shipping

Is Shipping Taxable in Ohio?

by Jennifer Dunn

Ohio Shipping Taxability

When dealing with sales tax, one question merchants often face is whether or not to charge sales tax on shipping charges. It doesn’t help that every state is different. Some want you to charge sales tax on shipping charges and others don’t necessarily require you to. Today we’ll look at how to handle sales tax on shipping in Ohio.

Is Shipping Taxable in Ohio?

Here’s what the Ohio Department of Taxation has to say about sales tax on shipping:

Ohio Shipping Taxability

In laymen’s terms, this simply states that Ohio considers shipping charges part of the price of the item and therefore taxable. So you, as a seller, should charge sales tax on the shipping price of an item.

If the item you are shipping isn’t taxable, then don’t charge sales tax on shipping. If some items in a shipment are taxable and some are not, only charge sales tax on the portion of shipping charges related to the taxable item. Here’s what Ohio has to say:

Nontaxable item shipping taxability Ohio

Summary of Ohio Shipping Taxability

Ohio makes figuring out whether to charge sales tax on shipping fairly simple.

  • If the item is taxable, charge sales tax on the shipping charges
  • If the item is not taxable, don’t charge sales tax on the shipping charges
  • If you are shipping a mix of taxable and non-taxable items, only charge sales tax on the portion of shipping charges allocated to the taxable item

For more about sales tax in the Buckeye State, check out our Ohio Sales Tax Guide.

Do you have questions about shipping taxability in Ohio? Start the conversation in the comments!

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  • Vic

    If a manufacture is sending me a free replacement item do I have to pay tax in the shipping? I live in Ohio.

    • Hi Vic, That’s a great question. Generally if they don’t charge you for the shipping they won’t charge you sales tax. (Since there is nothing to charge.) If you have more questions, I recommend contacting the Ohio Department of Revenue. You can find their number here: http://taxjar.wpengine.com/state-sales-tax-phone-numbers/

  • Jaq

    Hi, I have sold handmade goods from the United Kingdom to a customer in Ohio, USA, do I need to charge sales tax on shipping, I can’t find any information from the UK that suggests that I should?

    • Hi Jaq, You only need to collect sales tax from buyers in states where you have sales tax nexus. Here’s more about the factors that create nexus: http://taxjar.wpengine.com/sales-tax-nexus-definition/ If you don’t have nexus in Ohio, then you don’t need to charge sales tax. I hope that helps!

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