CINCINNATI — Ohio's recently-expanded sales tax holiday began at midnight.
The 2025 holiday will run for two full weeks, beginning at midnight on Friday, August 1, and ending at 11:59 p.m. on Thursday, August 14. In 2024, lawmakers expanded the holiday from just one weekend to 10 full days and increased the cutoff for a tax break from $75 per item to $500 per item.
During the sales tax holiday, shoppers can make qualifying purchases in-store and online without paying state sales tax. The exemption does not apply to motor vehicles, watercraft, outboard motors, alcohol, tobacco, vapor products, or any item containing marijuana.
The current Ohio sales tax rate is 5.75%, but the holiday also applies to Hamilton County's sales tax of around 2%, meaning buyers are saving on a total of 7.8% in sales tax per item.
The raised price limit opens the tax holiday up to more than just back-to-school shoppers, who often rely on the holiday to stock up on school supplies for the coming year.
It now means items like laptops, televisions, furniture, kitchenware and even textbooks are available to buy without the tax. According to the Ohio Department of Taxation, the tax holiday includes "all tangible personal property" under $500.
Examples given by the department also include dine-in food, dietary supplements, pet food, personal care products, musical instruments — and soft drinks.
There is no limit to the total purchase either — meaning that if you're buying six items each priced at $100, they'll all still be tax free, even if the total cost of your basket runs over $500. The spending limit is per item.
However, items with a price tag of over $500 won't qualify at all. Deals like "by one get one free" or "buy one for a reduced price" will also not be averaged to qualify both items for tax exemption — the tax holiday depends on the actual price paid per item.
But if the retailer is offering a sale that brings the price of an item down below $500, it will qualify, even if its original price was above the limit.
Coupons are trickier, though. The Ohio Department of Taxation says if the item you want to buy can be brought under $500 through a coupon or offer, the exemption will apply for retailer's coupons or loyalty card discounts, but it will not apply if the coupon entitles the retailer to a third-party reimbursement like a manufacturer's coupon.
The tax holiday also won't apply for rebates, because those are submitted after purchasing the item while the tax holiday takes place at the register, when you buy.
The Ohio Department of Taxation also says services are generally not applicable for the sales tax holiday — but there are some exceptions to that.
"If the service is the repair or installation of tangible personal property, the service itself can also be exempt if the tangible personal property installed or the value of the repair parts are $500 or less," reads the department's website.
But the parts and the service must be separated on the invoice. For example, if you were to get repairs done to a vehicle, the parts would be exempt under $500 per item — but the labor would not, and the invoice has to have the items split out separately from the labor.
You can read the FAQ on the Ohio Department of Taxation's website for more information on what's covered and what isn't.
