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Ohio: Basing Sales Tax Rates on Zip Codes

  • Mar 11, 2014 | Gail Cole

 ZIP codes: not accurate enough anymore.

Sales tax rate changes in Ohio may only occur at the start of a quarter. The current Ohio state sales tax rate is 5.75%, and counties and regional transit authorities may each levy sales tax up to 3%. As a result, combined state, county, and transit authority rates may not exceed 8.75%.

The Ohio Department of Taxation recently updated its list sales tax rates by Ohio post offices and zip codes, effective April 1, 2014. The list is not all inclusive:

“Some Ohio municipalities do not appear on this listing because they are not large enough to have their own post offices.”

In addition, some Ohio municipalities include more than one tax jurisdiction. For example, “small portions of Delaware, Fairfield, Licking and Union Counties assess a transit authority sales tax” that may not be accurately reflected in the rates by post office.

Using a zip code to determine a sales tax rate may work. Then again, it may not. Zip codes are the wrong tool for the job, and can lead to over- and undercharging sales tax.

An automated sales tax solution gets you the right rate, every time.

photo credit: jpstanley via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.