Determining the proper amount of Ohio sales tax involves understanding the combined state and local rates applicable to a specific transaction. The state levies a sales tax, and counties and certain transit authorities may impose additional local sales taxes. To compute the tax, multiply the taxable purchase price by the combined sales tax rate at the point of sale. For example, a $100 purchase in a location with an 7.25% combined rate would result in a sales tax of $7.25.
Accurate sales tax calculation is crucial for businesses to ensure compliance with Ohio tax laws and avoid potential penalties. Proper remittance of collected taxes also provides funding for essential state and local government services, such as education, infrastructure, and public safety. Historically, sales tax has been a significant revenue source for Ohio, evolving over time with changes in tax laws and economic conditions.