The sales tax rate in Lima, Ohio is 6.85 percent. That total combines the 5.75 percent Ohio state tax, a 1.00 percent Allen County tax, and a 0.10 percent transit authority tax, and vendors collect the full amount at the register on every taxable sale.1Allen County Auditor’s Office. Sales Tax2Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax
Local rates can change at the start of any calendar quarter if county commissioners or a transit authority get voter approval for an adjustment.3Ohio Department of Taxation. Sales and Use Tax Before a large purchase, it’s worth confirming the current rate on the Ohio Department of Taxation’s rate page.
What’s Taxable in Lima
Ohio’s sales tax covers most tangible personal property sold at retail. Clothing, electronics, furniture, appliances, and household goods all carry the full 6.85 percent in Lima. A short list of services is taxable too, including landscaping and lawn care, private investigation and security, and building maintenance and janitorial work.4Ohio Legislative Service Commission. Ohio Revised Code 5739.01 – Sales Tax Definitions Most everyday services, like haircuts or legal advice, are not taxable.
Digital Products
Downloads aren’t exempt just because nothing physical changes hands. Ohio taxes prewritten software, e-books, downloaded music, and digital movies at the same 6.85 percent, whether you buy them online or on a disc.5Ohio Department of Taxation. Sales and Use Taxability End consumers owe the full rate; a business reselling digital content can buy it tax-free with a valid resale certificate.
What’s Exempt
Several categories of purchases carry no sales tax at all:
- Groceries, meaning food intended for off-premises consumption. Food you take home is exempt; food eaten at a restaurant is not.2Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax
- Prescription drugs, along with insulin and diabetic testing supplies.6Ohio Department of Taxation. Sales and Use Tax: Drugs, Durable Medical Equipment, Mobility
- Prosthetic devices, durable medical equipment for home use, and mobility-enhancing equipment, when sold with a prescription.6Ohio Department of Taxation. Sales and Use Tax: Drugs, Durable Medical Equipment, Mobility
- Sales to qualifying nonprofit organizations that present a valid exemption certificate.2Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax
Over-the-counter medications are not exempt. Ibuprofen, allergy pills, and anything else a pharmacist can sell without a doctor’s order are taxable at the full rate.
The Annual Sales Tax Holiday
Ohio runs a back-to-school sales tax holiday each summer. In 2026, it runs Friday, August 7 through Sunday, August 9. During that weekend, these items are tax-free:
- Clothing priced at $75 or less per item
- School supplies priced at $20 or less per item
- School instructional materials priced at $20 or less per item
The exemption applies only to personal purchases. Anything bought for business use is still taxed, even if it falls within the price limits.
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state retailer or online seller that doesn’t charge Ohio sales tax, you still owe the equivalent as use tax. The rate matches the in-store rate: 6.85 percent for a Lima resident.3Ohio Department of Taxation. Sales and Use Tax Individuals report it when filing their Ohio income tax return, and businesses register for a consumer’s use tax account through the Ohio Department of Taxation.
Most large online retailers now collect Ohio sales tax automatically, so this comes up less often than it used to. Smaller out-of-state vendors and private-party transactions can still create a use tax obligation, and enforcement against individuals tends to focus on big-ticket items like vehicles and equipment.
For Businesses Collecting Sales Tax in Lima
Any business making taxable retail sales in Lima needs a vendor’s license before it opens.7Ohio Legislative Service Commission. Ohio Revised Code 5739.17 – Vendor’s License Apply through the Allen County Auditor’s office or online through the Ohio Business Gateway.8Ohio Department of Taxation. Register for a Vendor’s License or Seller’s Use Tax Account The fee is $50 per fixed location, split evenly between the state and Allen County’s general fund.9Ohio Department of Taxation. Vendor’s License Fee Change Coming Soon Selling without one is illegal.
Returns are filed electronically, typically through the Ohio Business Gateway, and are due by the 23rd of the month following the reporting period.10Ohio Legislative Service Commission. Ohio Revised Code 5739.12 – Monthly Return by Vendor – Reconciliation Return A low-volume business owing less than $1,200 in sales tax over a six-month period may qualify to file semi-annually instead of monthly.3Ohio Department of Taxation. Sales and Use Tax
Penalties for missing a deadline or underpaying can reach 15 percent of the amount owed for general deficiencies. If the state determines a vendor collected sales tax from customers but failed to remit it, the penalty can hit 50 percent.11Ohio Legislative Service Commission. Ohio Revised Code 5739.133 – Penalty That second scenario is where Ohio gets most aggressive.
Out-of-State Sellers Shipping Into Ohio
A business based outside Ohio must start collecting Ohio sales tax once it crosses either of two thresholds in a calendar year: $100,000 in sales to Ohio customers, or 200 individual transactions shipped into the state. Either trigger creates economic nexus, and the obligation applies whether or not the seller has any physical presence in Ohio. Sellers using major marketplace platforms generally don’t have to handle collection themselves, since the platform remits on their behalf; sellers running their own websites do.3Ohio Department of Taxation. Sales and Use Tax