Does Ohio Have a Sales Tax on Food?
Understand the specific distinctions in Ohio law that determine if sales tax applies to your food and beverage purchases at the checkout.
In Ohio, the sales tax on food depends on what the item is and where it is intended to be consumed. The state’s rules create distinctions between standard grocery items, certain pre-packaged goods, and meals prepared for immediate consumption, which determines if tax is added at checkout.
Exempt Food for Home Consumption
Ohio’s food tax law provides an exemption for food intended for human consumption off the premises where it is sold. This means most items purchased at a grocery store to be taken home and prepared are not subject to sales tax. This exemption covers a wide array of common grocery products, including fresh fruits and vegetables, meat, poultry, fish, bread, cereal, eggs, and dairy products. If an item is a basic food product meant to be part of a meal made at home, it qualifies as exempt.
Taxable Food and Beverage Items
Certain categories of food and beverages are taxable, even when sold in a grocery store. The taxability of candy depends on its ingredients; items containing flour like cookies are not taxed, while items made primarily of sugar are taxable. Soft drinks, which include carbonated and non-carbonated beverages with sweeteners, are also taxable.
However, the law provides exceptions for some beverages. Products containing milk, milk substitutes, or more than 50% fruit or vegetable juice by volume are not considered soft drinks and are exempt from sales tax. Alcoholic beverages and dietary supplements, such as vitamins or protein powders, are also taxable.
Taxation of Prepared Foods and Restaurant Meals
The tax treatment of food changes if it is prepared by the seller for immediate consumption. Food consumed on the premises where it is sold is taxable, including all meals and beverages served at a restaurant for dine-in customers. Food is considered prepared and taxable if it is sold in a heated state or if the seller provides eating utensils like forks or straws.
Common examples include a hot cup of coffee, a deli sandwich, or items from a hot food bar. However, because the Ohio Constitution exempts food intended for consumption off the premises, these same items are not taxed when sold for “to go” or “take out.”