Ohio (OH) Car Sales Tax, Title & Fees [+ Calculator]
Michael Collado is a car buying expert and has been a professional automotive writer since 2009. He’s written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Previously, Collado was a copywriter at the ad agency TBWA/Chiat/Day where he worked on brand campaigns for Nissan, ABC Television, Sony PlayStation, and Energizer. His recognition in the ad industry includes awards from Communication Arts and The Clios.
Collado has a Bachelor’s degree from the University of South Florida, with a major in Psychology and a minor in Marketing.
If you are looking to purchase a vehicle in Ohio, then you may have to pay a sales tax.
So what is the current sales tax rate and what are the other fees and exemptions?
In this article, we will take a look at the current tax information and associated fees with Ohio car sales.
Understanding Ohio Car Sales Tax Video
How Much Is the Car Sales Tax in Ohio?
The current sales tax on car sales in Ohio is 5.75%.
It's important to note, this does not include any local or county sales tax, which can go up to 2.25%, for a total sales tax rate of 8%. However, the average total tax rate in Ohio is 7.223%.
How to Calculate Ohio Sales Tax on a Car
To calculate the sales tax on your vehicle, find the total sales tax fee for the city. The minimum is 5.75%. Multiply the vehicle price (after trade-in but before incentives) by the sales tax fee.
For example, imagine you are purchasing a vehicle for $50,000 with the state sales tax of 5.75%. The trade-in value of your vehicle is $5,000 and you have a $2,000 incentive. The total taxable amount is $45,000 since trade-ins are not taxable, but incentives/rebates are.
In this example, multiply $45,000 by .0575 to get $2,587.50, which makes the total purchase price, $45,587.50 (account for the incentive).
Calculate Ohio Car Sales Tax Example
- Initial Car Price: $50,000
- Sales Tax Rate: 5.75%
- Trade-In Amount: $5,000
- Incentive/Rebate Amount: $2,000
Sales Tax = ($50,000 - $5,000) * .0575
Sales Tax = $2,587.50
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
Ohio Car Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
The 5.75% sales tax also applies to used car sales in Ohio.
Which County Has the Highest Tax?
Cuyahoga, Lake, Lorain, Medina, and Summit Counties have the highest total tax rates of 8% in Ohio.
Which County Has the Lowest Tax?
Wayne County has the lowest total tax rate of 7% in Ohio.
Car Sales Tax for Trade-Ins in Ohio
In Ohio, sales tax is not applied to the value of a trade-in. In other words, when calculating sales tax, be sure to subtract any trade-in amount from the purchase price before multiplying it by the tax rate.
For example, let’s say that you agree to purchase a new SUV for $35,000 and you trade in your old SUV for $10,000. This would bring the total purchase price of your new SUV to $25,000, which is the taxable amount.
Car Sales Tax on Private Sales in Ohio
You will have to pay the 5.75% sales tax on private car sales to the Ohio DMV.
As an example, if you pay $20,000 for a car in a private sale, then the sales tax would be $1,150.
Tax on Rebates & Dealer Incentives
The state of Ohio does tax rebates and dealer incentives. In other words, the taxable amount is before any incentives or rebates are applied.
As an example, if you purchase a car for $30,000 and have a dealer incentive for $3,000, the total taxable amount is still $30,000.
Ohio DMV & State Fees
Here are common fees for vehicles in Ohio:
- Plate/Registration Transfer: $6.00
- Annual Registration Fee: $31.00
- Title Fee: $15.00
Ohio Dealership Fees
The average dealership fee in Ohio is $250, which is also the maximum a dealership can charge in Ohio. This is known as a document fee or a "doc fee".
When Sales Tax Is Exempt in Ohio
Vehicles are exempt from sales tax in Ohio in the following situations:
- A vehicle title is transferred as a gift.
- A vehicle title is transferred in a divorce.
- A vehicle title is transferred in an inheritance.
- A vehicle title is transferred from an individual to a partnership.
Ohio EV Rebates & Incentives
Ohio currently has no state-specific EV incentives. This is on top of the federal tax credit of up to $7,500.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
