One of the 45 states in the union that levies a state sales tax on the majority of products and services is Ohio. Ohio now has a state sales tax of 5.75%. However, additional local sales taxes, which can range from 0.75% to 2.5%, may be levied by some counties and municipalities. Therefore, depending on the location of the transaction, Ohio’s overall sales tax rate might range from 6.5% to 8.25%.
According to Ohio law, cleaning services are regarded as taxable income. This implies that you must pay sales tax for the service if you employ a professional cleaner to clean your house or place of business. The same holds true for lawn care providers. You must pay sales tax for the service if you employ a professional landscaper to cut your lawn or trim your bushes.
There are a few exceptions to this rule, though. For instance, you might not be obliged to pay sales tax if you hire a cleaning agency to clean a residential property that you own and rent to tenants. Only when the cleaning service is included in the rental agreement and not as a separate arrangement does this exception apply.
Ohio provides a few exclusions and discounted prices for a select goods and services, which is also important to note. For instance, certain medical equipment, groceries, and prescription medications are excluded from sales tax. In addition, the state gives a 1% reduced sales tax rate on some grocery store purchases of food.
Overall, it’s critical to comprehend Ohio’s state tax structure and how it affects the cleaning and lawn service industries. You must gather and send sales tax on each transaction if you own a company that offers these services. Customers should anticipate paying sales tax as part of the transaction cost if they use these services. It is always better to seek advice from a trained tax professional if you have any questions about your tax liabilities or exemptions.