The Ohio lodging tax is a local excise tax on short-term hotel and rental stays, collected by the operator and paid to the county, city, or township that imposed it. Most jurisdictions set their piece of the tax at up to 3%, and where both a county and a municipality levy their own, the combined local rate typically reaches 6%. Several large-metro counties push higher through special-purpose add-ons authorized by state law. On top of any local lodging tax, Ohio’s 5.75% state sales tax applies to the same transaction, so a guest in a major city can see a combined tax burden above 16% on a nightly rate.
Who Levies the Tax
Three types of local government can impose a lodging tax, each under a separate section of the Ohio Revised Code. Municipalities and townships act under ORC 5739.08; counties act under ORC 5739.09. Because these are independent grants of authority, a single stay can be taxed by more than one overlapping jurisdiction.
A municipality or township can levy up to 3% on transactions where a hotel furnishes sleeping accommodations to transient guests. If the county has not imposed its own tax under 5739.09, the municipality or township can add a second 3% layer, reaching 6% at that level alone.1Ohio Legislative Service Commission. Ohio Revised Code 5739.08 – Municipal or Township Excise Lodging Taxes Counties start from a base of up to 3% adopted by resolution of the board of county commissioners.2Ohio Legislative Service Commission. Ohio Revised Code 5739.09 – Administration and Allocation of Lodging Tax
Who Owes the Tax
The tax applies to “transient guests” staying at a “hotel.” Ohio law defines a hotel as any establishment held out to the public as offering sleeping accommodations with five or more rooms for guests, which can be spread across multiple structures on the same property. A transient guest is anyone who occupies a room for fewer than 30 consecutive days.3Ohio Legislative Service Commission. Ohio Revised Code 5739.01 – Definitions
The 30-day line matters. Once a guest’s continuous stay crosses day 30, they stop being transient and no tax is due from that point on. Some jurisdictions also allow a refund of tax already collected on the earlier days of that stay, though the practice varies locally.
Short-Term Rental Hosts
The five-room threshold is the pivot for individual short-term rental hosts. A person renting a spare bedroom on Airbnb or Vrbo does not meet the statutory definition of a hotel, so the state framework may not reach them directly. Local ordinances, however, sometimes define hotel or transient accommodation more broadly than the state statute, and a small operator can still be captured that way. Check the specific city or county ordinance rather than relying on the state definition.
Ohio’s marketplace facilitator law explicitly excludes lodging, so platforms are not required by state law to collect the tax on hosts’ behalf.4Ohio Department of Taxation. Sales and Use Tax Airbnb has entered into voluntary collection agreements with certain Ohio jurisdictions and collects in those areas automatically. Everywhere else, the host is fully responsible. Confirm your local obligation independently, because voluntary platform arrangements can change.
Rates: Base, Stacked, and Special-Purpose
In most parts of the state, the combined local lodging tax caps out at 6%: 3% from the county and 3% from the municipality, or 6% from a municipality where the county has not levied. Beyond that, ORC 5739.09 authorizes specific counties to adopt additional special-purpose levies. Counties that have pledged revenue to agreements under ORC 307.695 can raise their county rate to as high as 7%. Others can add 3.5% or 4% when revenue is pledged to a convention facilities authority. Separate provisions allow 1% to 2% additions for convention center operations, tourism promotion, or port authority military-use facilities.2Ohio Legislative Service Commission. Ohio Revised Code 5739.09 – Administration and Allocation of Lodging Tax Combined local rates in Ohio’s largest metros have historically run past 10%, with Hamilton County (Cincinnati) and Franklin County (Columbus) among the highest.5Ohio Department of Taxation. Lodging Tax
Because rates shift when voters approve new levies or commissioners adopt new resolutions, verify the current rate with the county auditor or municipal finance office at least once a year.
State Sales Tax Applies Separately
Ohio’s 5.75% state sales tax is charged on every hotel transaction as a distinct line from any local lodging tax.6Ohio Legislative Service Commission. Ohio Revised Code 5739.02 – Levy of Sales Tax Counties can add local sales tax on top, though the combined state-plus-local sales tax rate is capped at 8.75%. The sales tax portion goes to the Ohio Department of Taxation. The lodging tax portion goes to whichever local government levied it. These are two separate obligations with two different remittance processes.
Exemptions
The 30-day rule is the most commonly used exemption. A guest whose continuous stay reaches 30 days is no longer transient and owes no lodging tax on that stay.3Ohio Legislative Service Commission. Ohio Revised Code 5739.01 – Definitions
Government purchases can be exempt, but the form of payment controls the outcome. When a federal employee pays with a government-issued credit card or government check, the purchase is treated as a sale to the federal government and is exempt. When the same employee pays personally and later seeks reimbursement, the employee is the purchaser and the sale is taxable.7Ohio Department of Taxation. ST 1999-03 – Purchases by Government Employees The same logic applies to Ohio state and local government employees and to employees of other states that grant Ohio a reciprocal exemption. Check the payment method, not just the guest’s claim of government employment.
Nonprofits are not automatically exempt. Ohio’s sales tax exemption for nonprofit and religious organizations does not extend to hotel occupancy taxes. Whether a local jurisdiction grants a lodging tax exemption to nonprofits depends on that jurisdiction’s own ordinance, so a nonprofit exemption certificate should not be honored on the lodging tax without confirming local rules.
Whenever an exemption applies, get documentation at the time of the transaction. The Ohio Sales and Use Tax Unit Exemption Certificate (STEC U) is the standard form.8Ohio Department of Taxation. Sales and Use – Exemption Certificates and Statements of Exempt Sales Keep the certificates and supporting records for at least four years. If an auditor finds an undocumented exemption, the operator is generally liable for the uncollected tax.
Registration and Vendor’s License
Any business making taxable sales in Ohio needs a vendor’s license before collecting tax. Because lodging transactions are subject to the state sales tax, operators need a vendor’s license whether or not their local jurisdiction also imposes its own lodging tax. Registration is handled through the OH|TAX eServices portal or the county auditor’s office.4Ohio Department of Taxation. Sales and Use Tax
For the local lodging tax itself, most counties and municipalities require a separate registration with the local auditor or finance department. Contact the auditor in the county where the property sits to confirm what’s required. You’ll typically need your Federal Employer Identification Number and details about the property, including the number of rooms available for rent.
Filing Returns
Returns for the local lodging tax are filed with the local taxing authority that imposed it, not with the Ohio Department of Taxation. The state sales tax on the same stay goes to the state through OH|TAX eServices; the local lodging tax goes to the county, city, or township. Two obligations, two offices.
Filing frequency varies by jurisdiction. Many counties require quarterly returns, with payments due by the last day of the month following each quarter’s end. Some larger cities require monthly filing. Even a property with no rental activity in a period is typically still required to file a zero return.9Fairfield County Auditor’s Office. Lodging Tax
Each return reports total gross receipts from room rentals, the number of taxable room nights, exempt room nights with the reason for each exemption, and total tax collected. Operators who run properties across multiple jurisdictions file separately with each taxing authority, since rates and schedules differ.
Penalties for Late or Missed Filing
ORC 5739.08 and 5739.09 both authorize local jurisdictions to impose penalties of up to 10% of the unpaid tax on late payments, plus interest at the rate set under ORC 5703.47.1Ohio Legislative Service Commission. Ohio Revised Code 5739.08 – Municipal or Township Excise Lodging Taxes Local ordinances set the specific schedules within that ceiling.
Some ordinances also classify failure to remit as a criminal offense. First-degree misdemeanor charges carrying fines up to $1,000 and jail time up to six months are not unusual in jurisdictions taking aggressive enforcement positions. Unpaid lodging taxes can also become a lien on the property under ORC 5739.094 and be collected the same way as delinquent property taxes, which makes ignoring a bill considerably riskier than some small operators assume.