When Is Ohio Sales Tax Due? Filing Frequencies & Deadlines
Navigate Ohio sales tax obligations with confidence. This guide clarifies the essential steps for businesses to ensure timely and accurate compliance.
Sales tax in Ohio is an obligation for businesses selling taxable goods or services within the state. Businesses collect this tax from customers at the point of sale and remit the funds to the Ohio Department of Taxation.
Determining Your Filing Frequency
The Ohio Department of Taxation assigns each business a sales tax filing frequency: monthly, quarterly, or semi-annually. This assignment is based on the business’s anticipated or actual volume of taxable sales. Higher sales volumes necessitate more frequent filing.
Businesses with substantial tax liabilities, exceeding $75,000 in estimated annual sales tax or over $1,200 in collected sales tax per month, are assigned a monthly filing frequency. Those collecting between $200 and $1,200 in sales tax per month file quarterly returns. Businesses collecting less than $200 monthly or under $1,200 semi-annually receive a semi-annual frequency.
New businesses receive an initial filing frequency based on their estimated annual tax liability upon registration. Businesses can confirm their assigned frequency through their Ohio Business Gateway account or official correspondence from the Ohio Department of Taxation. Once a business has an Ohio seller’s permit, they must file returns for each assigned collection period, even if no sales tax was collected, by submitting a “zero return.”
Understanding Sales Tax Due Dates
Sales tax returns in Ohio are due on the 23rd day of the month following the reporting period. The exact due date varies by filing frequency.
For monthly filers, sales from a calendar month are due by the 23rd day of the following month. For example, January sales are due by February 23rd. Quarterly filers report sales for three-month periods, with due dates on the 23rd of January, April, July, and October for the preceding quarter. Sales for the January-March quarter are due by April 23rd.
Semi-annual filers report sales for six-month periods. Returns are due by July 23rd for the January-June period and by January 23rd for the July-December period of the previous year. If a sales tax due date falls on a weekend or a state or federal holiday, the deadline is shifted to the next business day.
Methods for Filing and Payment
All sales and use taxpayers in Ohio must file electronically. The primary method for submitting Ohio sales tax returns and payments is through the Ohio Business Gateway online portal.
To file, businesses log into their Ohio Business Gateway account. They navigate to the “Sales Tax (UST-1)” section, acknowledge any updates, and select their filing period. Businesses can manually enter taxable sales and tax liability for each county or upload a data file.
Once the return is complete, payment can be made directly through the Ohio Business Gateway. Accepted payment methods include ACH debit from a bank account or credit card payments, though a service fee may apply. ACH credit is also an option, but taxpayers must first register with the Treasurer of State. After submission, retain confirmation numbers and records of filed returns and payments.
What Happens If You Miss a Deadline
Failing to file an Ohio sales tax return or make a payment by the due date can result in penalties and interest. For late filing, the penalty is the greater of $50 or 10% of the tax due for each month or fraction thereof, up to a maximum of 50% of the total tax due. A specific penalty for failure to file is the greater of $50 per month, not exceeding $500, or 5% per month, not exceeding 50% of the total tax due.
Interest accrues on underpayments or late payments at a rate prescribed by Ohio Revised Code Section 5703.47. For example, the interest rate for 2024 and 2025 is 10% per year, or 0.83% per month.
Beyond monetary penalties, the Ohio Department of Taxation may pursue other enforcement actions, such as issuing assessments or placing liens. If a deadline is missed, businesses should file and pay the outstanding tax as soon as possible to mitigate further penalties and interest. The Ohio Tax Commissioner has the authority to abate all or a portion of imposed penalties if the failure to comply was due to reasonable cause and not willful neglect.