Ohio Wants to Abolish Property Taxes. The Sales Tax Could Hit 20% If It Does

Imagine paying 20% sales tax on everything you buy in Ohio.

That's not a hypothetical. It's a warning from the state's own governor.

Governor Mike DeWine says a proposed constitutional amendment to ban property taxes in Ohio could create a $24 billion budget hole — forcing dramatically raised sales taxes or quadrupled income taxes to fill the gap.

"Sales tax could go up to 17, 18, 19, 20% on products that you buy," DeWine warned. "So, it would be absolutely devastating." Savant Labs

And yet — thousands of Ohioans are actively trying to make it happen.

Who's Behind This and Why

The movement isn't coming from fringe activists. It's coming from homeowners who have watched their property tax bills explode.

Record-breaking housing price increases in recent years have led to property tax spikes across the state. "The ever-increasing property taxes truly are pricing people out of their homes," said Brian Massie, who is helping lead the Committee to Abolish Ohio Property Taxes. "The people in the state of Ohio have had enough." TaxJar

The group — also known as Ax Ohio Tax — is currently in the signature-gathering phase. They need a minimum of 413,487 valid signatures from 44 of Ohio's 88 counties by July 1 to make the November ballot. The Sales Tax People

As of their most recent public announcement, the group has collected approximately 305,000 signatures — meaning they are short, the deadline is weeks away, and most observers believe they will not make the November 2026 ballot.

But the debate they've ignited? That's not going away.

What $24 Billion Actually Pays For

Here's why both Democrats and Republicans in Ohio's legislature oppose this — despite representing very different constituencies.

Property taxes generate about $24 billion each year for local governments across Ohio. To put that in perspective, that's equal to the total revenue from Ohio's state income and sales taxes combined.

That money funds:

The amendment doesn't specify how that revenue would be replaced — it leaves that entirely to the legislature. And that's exactly what has state officials alarmed.

The Sales Tax Math

Ohio's current combined sales tax rates range from 6.5% to 8% depending on the county. Cuyahoga County currently holds the highest rate in the state at 8%. Quizlet

Now consider what replacing $24 billion annually through the sales tax alone would require.

A state Office of Budget and Management analysis estimates the replacement sales tax rates would need to reach 15–18% range, with DeWine's own public statements putting the ceiling at 20%.

That would make Ohio's sales tax the highest in the country — by a massive margin. The current national leader, Louisiana, sits at a combined rate of around 9.5%.

A Tax Foundation analysis suggests that if Ohio eliminated property taxes and replaced them with income taxes instead, the statewide rate could average around 12.6% — climbing above 13% in some counties, with extreme estimates as high as 27%.

Every replacement option is painful. The only question is who bears the pain.

The Regressive Tax Problem

This is where the debate gets philosophically serious.

Property taxes, for all their flaws, are tied to asset values. Owners of more valuable properties pay more. They're imperfect — rising home values can spike bills for long-term residents on fixed incomes — but they have some relationship to wealth.

Sales taxes are different. Policymakers caution that shifting the burden away from property taxes could disproportionately affect households with low or middle incomes, since everyone pays the same rate regardless of how much they earn.

The group Ohioans to Protect Public Services — a coalition of over 65 groups including local elected officials, businesses, trade groups, and unions representing first responders and teachers — called the proposal "reckless," warning it would only create chaos and trigger big increases in sales and income taxes alongside drastic reductions in local services.

Supporters counter that property ownership feeling like "renting from the government" is itself a form of injustice — and that forcing a reckoning is the only way to compel meaningful reform from a legislature that has repeatedly failed to act.

Ohio Already Tried to Fix This — Legislatively

It's worth noting that Ohio's governor and legislature didn't ignore the property tax crisis. They tried to address it.

In December 2025, Governor DeWine signed five bills overhauling Ohio's property tax system — projected to deliver more than $3 billion in savings for Ohio property owners over the next three years by limiting how much future increases in property values can trigger automatic tax hikes. Quaderno

The reforms included capping automatic tax increases tied to reappraisals, expanding the owner-occupancy tax credit for homeowners, and giving counties greater oversight over tax rates.

For the amendment's supporters, it wasn't enough. For the governor, it was a responsible middle ground that avoided blowing up $24 billion in public services.

That disagreement is what's driving the signature campaign — and what will continue to drive it even if the amendment misses the 2026 ballot.

What This Means for Businesses in Ohio

Even if this amendment doesn't make the November 2026 ballot — which now looks likely — businesses in Ohio should understand what's at stake.

The property tax revolt isn't over. Ohio voters will elect a new governor in November 2026, since DeWine is term-limited, meaning discussions about tax relief will continue through the campaign season and beyond. A future legislature, under pressure from a sustained grassroots movement, could pursue property tax elimination or dramatic reduction through legislative channels rather than a ballot initiative. AccurateTax

If sales taxes eventually rise to compensate — even partially — the compliance implications are significant. Rate increases require POS system updates, filing recalculations, and customer-facing price adjustments. Businesses that sell across multiple Ohio jurisdictions already manage different local rates. A statewide rate jump would affect every single transaction.

The time to understand your Ohio sales tax exposure is before rates change — not after.

Operating a business in Ohio and want to make sure your sales tax setup is ready for whatever the legislature does next? Book a free consultation with our team at sales.tax. We'll review your current obligations and help you build a compliance strategy that holds up no matter what the ballot brings.

Ohio's Sales Tax Holiday Is Back in August 2026. Here's Everything You Need to Know

Back-to-school shopping just got a little cheaper in Ohio.

Governor Mike DeWine announced that Ohio's 2026 Sales Tax Holiday will run for three days in August — from 12 a.m. on August 7 through 11:59 p.m. on August 9. Avalara

Three days. No sales tax on qualifying items. And if you're a parent stocking up on school supplies, clothing, or instructional materials before the new school year, the timing is designed exactly for you.

Here's what's covered, what's not, and what businesses need to have ready before the weekend arrives.

What Is Ohio's Sales Tax Holiday?

Ohio's sales tax holiday is an annual event where the state temporarily suspends sales tax on select back-to-school purchases. It's designed to give families a break on essential school items right before the academic year begins.

The holiday normally begins right before the new school year starts so parents and students can save money on school supplies. Avalara

Ohio has run this holiday in various forms for years. The 2023 version was notably expanded — covering all items $500 and under for a full weekend. The 2026 version returns to the traditional, narrower scope focused specifically on back-to-school essentials.

What's Tax-Free During the Holiday

The 2026 Ohio Sales Tax Holiday includes all items of clothing priced at $75 or less, school supplies priced at $20 or less, and school instructional materials priced at $20 or less. Avalara

Breaking that down:

Clothing — $75 or less per item:

School Supplies — $20 or less per item:

School Instructional Materials — $20 or less per item:

If an item falls within these categories and stays under the price threshold, no Ohio sales tax applies — state or local — during the holiday window.

What's NOT Included

This is where shoppers can get caught off guard — and where retailers need to be precise.

The sales tax holiday does not include items that are $500 or less, food in restaurants, boats and watercrafts, titled outboard motors, motor vehicles, alcohol, tobacco, vape products, or items with marijuana. It also does not apply to taxable services and items purchased for use in a business. Avalara

A few things worth highlighting specifically:

The price thresholds apply per item, not per transaction. Buying five $18 notebooks is fine — all five qualify. Buying one $25 notebook means that item is fully taxable.

What Changed From 2023

Ohio's 2023 sales tax holiday was a significant expansion — covering essentially all items priced at $500 or under for the entire weekend. That version generated a lot of buzz because it extended well beyond school supplies into appliances, electronics, and furniture.

The 2026 holiday does not include items that are $500 or less. Avalara

In other words — that expanded version is gone. 2026 is back to the traditional, targeted format. Families hoping to score a tax-free TV or refrigerator like they could in 2023 will be disappointed. This holiday is specifically about clothing and school supplies, not general consumer goods.

If you're planning purchases based on what Ohio's holiday covered in prior years, double-check the current rules before assuming something qualifies.

The Savings — By the Numbers

Ohio's state sales tax rate is 5.75%. Combined with local rates, most Ohio shoppers pay between 6.5% and 8% in total sales tax depending on their county.

Here's what that saves on a typical back-to-school haul:

ItemPriceTax Saved (at 7.5%)
Pair of sneakers$70$5.25
School uniform set$65$4.88
Calculator$18$1.35
Backpack full of supplies$45 in supplies$3.38
Total$198~$14.86

Not enough to change your life — but enough to cover another supply run. And for families buying for multiple kids, it adds up faster.

What Retailers Need to Do Before August 7

If you operate a retail business in Ohio, the sales tax holiday isn't just a consumer event — it's a compliance event. You're responsible for correctly applying the exemption at the point of sale, and getting it wrong creates liability.

Here's what to have in place before the weekend:

  1. Audit your product catalog — identify every item you sell that could qualify and verify it meets both the category and the price threshold requirements
  2. Update your POS system — qualifying items need to ring up tax-free automatically during the holiday window; manual overrides create errors at volume
  3. Train your staff — employees will get questions. Make sure they know what qualifies, what doesn't, and what to do when a customer disputes a taxable charge
  4. Handle split transactions correctly — if a customer buys a $70 shirt (tax-free) and a $30 pair of sunglasses (taxable) in the same transaction, both items need to be handled accurately
  5. Document everything — keep records of holiday-period transactions in case of a future audit; the exemption needs to be defensible

The holiday runs 72 hours. High transaction volume, edge-case products, and price-threshold questions will come fast. Preparation before August 7 is the difference between a smooth weekend and a compliance headache.

Ohio Is One of Nearly 20 States With a Sales Tax Holiday This Year

Ohio's back-to-school weekend is one of the most recognized sales tax holidays in the country — but it's far from the only one happening in 2026.

Nearly 20 states have confirmed at least one sales tax holiday this year, covering everything from back-to-school clothing and supplies to Energy Star appliances, emergency preparedness gear, firearms and ammunition, and even outdoor recreation equipment. Key dates cluster around the same August 7–9 weekend as Ohio — Florida, Iowa, Missouri, Oklahoma, South Carolina, Texas, and Virginia are all running their own back-to-school holidays that same weekend. Tennessee's holiday runs July 24–26, Connecticut's goes August 16–22, and Maryland's stretches from August 9–15.

The holiday types vary too. Florida alone runs five separate sales tax holidays throughout 2026 — including a "Freedom Month" holiday in July covering boating, camping, and fishing supplies, and a dedicated "Tool Time" holiday for skilled trade workers. Louisiana and Mississippi both run Second Amendment weekends later in the year. Missouri added an Energy Star appliance holiday in April on top of its August back-to-school event.

If you sell across multiple states, the compliance picture gets complex fast — different dates, different qualifying categories, different price thresholds, and different rules on whether local taxes are included. For the full 2026 sales tax holiday schedule, state by state, visit our complete guide to sales tax holidays. It covers every confirmed holiday, the eligible items, and the price caps you need to know.

Running a retail business in Ohio or another state with an upcoming sales tax holiday and not sure how to handle compliance during the exemption window? Book a free consultation with our team at sales.tax. We'll make sure your systems are set up correctly before the holiday hits.

Ohio just repealed key telecom sales tax exemptions in 2026 - here's what your business needs to do now

Ohio just made a quiet but important change to its sales tax rules — and many businesses haven’t caught it yet.

As of January 1, 2026, key sales tax exemptions for telecommunications services and equipment have been repealed.

If your business operates a call center, uses telecom services heavily, or relies on direct marketing infrastructure, this change could directly impact your tax liability.

Here’s what changed — and what your business needs to do now.

What Changed in Ohio Telecom Sales Tax in 2026?

Ohio eliminated certain sales tax exemptions that previously applied to:

These exemptions are no longer available starting January 1, 2026.

This means many businesses that previously paid little or no sales tax on these items may now be required to collect or pay it.

Who This Affects the Most

This change is especially relevant for:

If you’ve been relying on these exemptions, your cost structure may have changed overnight.

The Hidden Risk: Ongoing and Retroactive Exposure

This is where things get more serious.

If your business continues operating under the assumption that these exemptions still apply, you may be:

States don’t always notify businesses directly when exemptions are removed.

That means the responsibility falls on you to adjust — even if the change wasn’t obvious.

Why This Change Matters More Than It Looks

At first glance, this might seem like a niche update.

But for affected businesses, it can significantly impact:

And because this is a targeted change, many businesses haven’t adjusted yet — which increases risk.

What Your Business Should Do Now

If you operate in Ohio and use telecom services, don’t wait to address this.

Start with these steps:

This is the kind of change that’s easy to miss — but costly to ignore.

The Bottom Line

Ohio’s repeal of telecom sales tax exemptions is a targeted change — but it has real consequences.

If your business relied on these exemptions, your compliance obligations have changed.

And if you don’t adjust, the risk doesn’t go away — it grows over time.

Were You Relying on This Exemption?

This is exactly where most businesses need clarity.

At sales.tax, we help businesses identify exposure, adjust to rule changes, and stay compliant across states.

👉 Let’s review your exposure and make sure this change doesn’t turn into a liability.

Ohio Sales Tax Holiday 2025: Dates, Rules, and What Businesses Need to Know

The Ohio sales tax holiday is one of the most anticipated tax-free shopping events of the year. Each year, the state temporarily suspends sales tax on certain purchases, giving consumers a chance to save money while encouraging retail spending.

For businesses, however, the tax holiday comes with important compliance rules. Retailers must know which items qualify, how to apply the exemption correctly, and how the rules apply to both in-store and online purchases.

Here’s what businesses and consumers need to know about the Ohio Sales Tax Holiday 2025.

What Is the Ohio Sales Tax Holiday?

The Ohio sales tax holiday is a temporary period during which certain items can be purchased without paying state or local sales tax. The program was designed to help families save money on back-to-school items and stimulate retail activity.

During the holiday period, qualifying purchases are exempt from both the Ohio state sales tax and applicable local sales taxes.

This means consumers can purchase eligible items without paying the typical combined tax rate.

When Is the Ohio Sales Tax Holiday in 2025?

While exact dates may vary slightly depending on state announcements, the Ohio tax-free weekend traditionally takes place in early August and runs for several days.

Retailers should monitor announcements from the Ohio Department of Taxation for the official 2025 dates and compliance guidance.

Once the holiday begins, the exemption applies automatically at checkout for qualifying items.

What Items Qualify for the Tax-Free Weekend?

The Ohio sales tax holiday generally applies to specific categories of consumer goods commonly purchased for school or everyday use.

Common qualifying items include:

However, these items must fall below certain price thresholds to qualify for the exemption.

For example, individual clothing items must typically be priced below a set limit per item to be eligible.

Retailers should review official state guidelines to confirm current price thresholds and item eligibility.

What Items Are Not Eligible?

Not every purchase qualifies during the Ohio tax holiday.

Examples of items that may not qualify include:

Additionally, services and digital goods may be subject to different tax rules depending on Ohio regulations.

Businesses should verify whether their products fall within the eligible categories before applying the exemption.

How the Ohio Sales Tax Holiday Affects Businesses

While the holiday benefits consumers, it also requires businesses to adjust their tax collection procedures.

Retailers must ensure their systems correctly remove sales tax for qualifying items during the tax holiday period.

Businesses should prepare by:

Failing to apply the exemption correctly can lead to over-collection or compliance issues.

What About Online and Remote Sellers?

Online retailers and remote sellers may also need to apply the exemption when shipping qualifying products to customers in Ohio.

If a business has sales tax nexus in Ohio, it is generally required to follow the same tax holiday rules as in-state retailers.

This means eligible purchases shipped to Ohio addresses during the tax holiday may qualify for the exemption.

Businesses selling through marketplaces should also confirm how their platform handles tax holiday adjustments.

How Consumers Can Take Advantage of the Ohio Tax Holiday

For shoppers, the Ohio tax-free weekend offers a chance to save money on everyday purchases.

To maximize savings:

Because many retailers run additional promotions during this period, consumers may see even greater discounts combined with the tax exemption.

Do Other States Offer Sales Tax Holidays?

Yes. Several states offer similar tax-free shopping events throughout the year.

States that frequently host sales tax holidays include:

Each state sets its own rules, qualifying items, and price limits.

For businesses selling across multiple states, it’s important to track these holidays carefully to ensure proper tax compliance.

Final Thoughts

The Ohio Sales Tax Holiday 2025 provides an opportunity for consumers to save money and for retailers to boost sales. However, businesses must be prepared to apply the exemption correctly and ensure their systems reflect the temporary tax change.

Understanding the rules ahead of time can help retailers avoid compliance issues and make the most of the increased shopping activity during the tax-free period.

Managing sales tax across multiple states — especially during events like tax holidays — can quickly become complicated.

At sales.tax, our experts help businesses stay compliant with changing sales tax rules, local rate updates, and special exemptions.

Schedule a free consultation today to see how we can simplify your sales tax compliance.