BACK TO SCHOOL SHOPPING … Students across Ohio are able prepare for the upcoming school season a bit easier thanks to the tax free holiday.
By: Jacob Kessler
THE VILLAGE REPORTER
jacob@thevillagereporter.com
Shoppers across Ohio are enjoying a much-needed break from sales tax as the state’s expanded Sales Tax Holiday officially began at 12:00 a.m. on August 1st and will continue until 11:59 p.m. on August 14th.
This year’s program is broader than in years past, covering nearly all tangible personal property priced at $500 or less, making it one of the most shopper-friendly tax holidays in the nation.
The holiday comes at a crucial time for families preparing for the new school year. According to a recent survey by RetailMeNot, 63% of U.S. shoppers plan to participate in back-to-school shopping, with most making purchases during July and August.
The tax holiday aligns perfectly with that trend, helping Ohioans save on everything from notebooks and backpacks to electronics and home essentials.
Unlike past years when only school-related items were exempt, the 2025 expansion allows a wide range of goods to be purchased tax-free, including clothing, books, electronics, home goods, sporting equipment, plants, and even furniture.
Soft drinks, dietary supplements, and dine-in food also fall under the exemption. However, certain items remain taxable, such as motor vehicles, watercraft, alcoholic beverages, tobacco, vapor products, and anything containing marijuana.
The Ohio Department of Taxation has issued guidance for both consumers and business owners to ensure a smooth and compliant shopping experience.
Retailers must be aware that bundled items sold for one non-itemized price, where one part is taxable, will require sales tax on the entire sale.
On the other hand, if taxable and non-taxable items are listed separately, only the taxable items will be subject to sales tax.
The state also clarified rules around items typically sold as a unit. Retailers are not allowed to break up these packages in an attempt to apply exemptions.
Additionally, online purchases qualify as long as the order is paid for and accepted during the sales tax holiday period, even if the item is delivered afterward.
Shipping and handling charges are exempt if the shipment contains only tax-free items, but if taxable and exempt items are combined, tax must be applied proportionally to the portion of the shipment that includes taxable goods.
For returns and exchanges, items swapped for the same product after the holiday will remain tax-free, while those exchanged for a different item will be taxed at the time of the new purchase.
This extended holiday comes at a time when many families are scaling back on spending due to rising costs. Back-to-school shoppers are expected to spend an average of $389 for K–12 students and $598 for college students, down considerably from last year.
Cost-conscious consumers are looking for any opportunity to save, and Ohio’s two-week tax exemption is offering just that.
As parents, college students, and everyday consumers look to stretch their budgets, the 2025 sales tax holiday provides a unique chance to stock up on essentials without the added cost.
For more details, including a complete list of qualifying items and guidelines for businesses, visit the Ohio Department of Taxation’s website or RetailMeNot’s tax holiday guide.