No, tires are not tax free in Ohio. Every retail tire purchase is subject to Ohio sales tax at a combined state and local rate between 6.50 and 8.00 percent, plus a flat $1.00 per-tire state replacement fee on qualifying new tires. On a $600 set of four passenger tires in a county with a 7.25 percent rate, the combined taxes and fees come to roughly $47.50.
What Sales Tax Applies to Tires
Tires are tangible personal property, so they’re taxable under Ohio Revised Code 5739.02 at the state base rate of 5.75 percent.1Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax – Purpose – Rate – Exemptions Counties and regional transit authorities add their own levies, pushing the combined rate anywhere from 6.50 to 8.00 percent depending on where the shop sits.2Ohio Department of Taxation. Sales and Use Tax Rate Map State law caps the combined rate at 8.75 percent, but no Ohio county currently reaches that ceiling.3Ohio Department of Taxation. Sales and Use Tax
The tax applies to the entire tire-related invoice, not just the tires themselves. Mounting, balancing, shop supplies, and disposal charges rolled into the bill are all taxable alongside the tires.4Ohio Department of Taxation. Auto Repair Service and Installation of Tangible Personal Property A $20 installation charge per tire doesn’t escape tax just because it’s labor.
The $1.00 Tire Replacement Fee
On top of sales tax, Ohio imposes a flat $1.00 fee on each qualifying tire. Under Ohio Revised Code 3734.901, the fee has two 50-cent components: one funds scrap tire cleanup and enforcement, and the other goes to the soil and water conservation district assistance fund.5Ohio Legislative Service Commission. Ohio Revised Code 3734.901 – Tire Fee Administrative Fund The second 50 cents is scheduled to expire on June 30, 2028, which would drop the fee to 50 cents per tire unless the legislature extends it.
The fee doesn’t apply to every tire sale. It covers new replacement tires with rims of 13 inches or larger designed for motor vehicle use. Used tires, retreaded tires, and tires that come already mounted on a new vehicle are exempt.4Ohio Department of Taxation. Auto Repair Service and Installation of Tangible Personal Property Buying quality used tires or having existing tires retreaded avoids the $1.00 charge.
One quiet detail: the fee is legally levied on the dealer, not the consumer. Retailers pass it through, but because it’s part of the dealer’s cost, it’s included in the taxable price. You end up paying a few cents of sales tax on the fee itself.6Ohio Department of Taxation. ST 1993-02 – Scrap Tire Fee
Ordering Tires Online
Buying from an out-of-state online retailer doesn’t make the purchase tax free. If the seller collects Ohio sales tax at checkout, you’re done. If it doesn’t, you owe Ohio use tax at the same combined rate that would have applied in person.3Ohio Department of Taxation. Sales and Use Tax
After the 2018 Supreme Court decision in South Dakota v. Wayfair, most large online retailers collect Ohio tax automatically. Smaller or specialty sellers sometimes don’t, which shifts the obligation to the buyer. Individual consumers can report and pay use tax on their Ohio income tax return or through a consumer use tax account on the OH|TAX eServices portal. Ohio can assess unpaid use tax in an audit years later, so skipping it doesn’t erase it.
Who Can Buy Tires Without Sales Tax
A narrow set of buyers can avoid the sales tax, though not the $1.00 replacement fee. The exemptions appear in Ohio Revised Code 5739.02(B).1Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax – Purpose – Rate – Exemptions
- Purchases for resale. A tire dealer buying inventory from a wholesaler doesn’t owe sales tax at that stage; the tax is collected later when the tire sells to the end user. The dealer must give the wholesaler a valid exemption certificate.
- Agricultural use. Tires for tractors, combines, and other equipment used directly in commercial farming qualify when the equipment produces tangible personal property for sale.
- Government and qualifying nonprofits. Federal, state, and local agencies, along with organizations holding 501(c)(3) status, are generally exempt on purchases including vehicle maintenance supplies.
To claim any of these, the buyer presents a completed Ohio Blanket Exemption Certificate (Form STEC B) at the time of sale.7Ohio Department of Taxation. Sales and Use Tax Blanket Exemption Certificate Without the form on file, the retailer must collect the full tax regardless of the buyer’s status, which means chasing a refund later. Everyday retail buyers of passenger tires do not qualify for any of these exemptions.
Heavy Commercial Tires and Federal Excise Tax
Passenger-car and light-truck buyers won’t see this one, but anyone buying heavy commercial tires should know it exists. Under 26 U.S.C. 4071, the federal government taxes highway tires with a maximum rated load capacity above 3,500 pounds at 9.45 cents for every 10 pounds over that threshold (4.725 cents for bias-ply and super single tires).8Office of the Law Revision Counsel. 26 USC 4071 – Imposition of Tax A standard passenger tire falls well below the threshold and isn’t affected. The tax is levied at the manufacturer or importer level, so it’s already baked into the wholesale price when the tire reaches a retail shop. The definition of a taxable tire under 26 U.S.C. 4072 covers any tire made wholly or partly of rubber and marked for highway use under federal regulations.9Office of the Law Revision Counsel. 26 USC 4072 – Definitions
For the typical Ohio driver, the practical picture is simple. There is no legal way to buy new tires at an Ohio retailer without paying sales tax and the $1.00 per-tire fee. The one variable within your control when comparing prices is the county where you make the purchase, since local rates vary by as much as 1.5 percentage points across the state.