07/31/2026

Ohio Limits Sales Tax Holiday Scope in 2026

Ohio has scaled back the annual Sales Tax Holiday this year, with the exemption applying only to items of clothing priced at $75 or less, school supplies priced at $20 or less, and school instructional materials priced at $20 or less. There is no general exemption for items under $500, and the sales tax holiday does not apply to food purchased for consumption on the premises, including banquets, as it had in recent years.

The limited sales tax exemption will be shorter this year, and only in effect from Friday, August 7 until midnight on Sunday, August 9. Previous tax-free holidays lasted 10 days in 2024 and 14 days in 2025. A definition of the items which do qualify in 2026, and other rules, can be found on the official Ohio Sales Tax Holiday webpage.

OHLA had worked with the Ohio Department of Taxation when the exemption was expanded in 2024 to successfully exclude hotel room rentals, after the state had initially said room tax would qualify for the exemption. OHLA was able to highlight language in the law which allowed hotel rentals to be excluded from the holiday, and helped explain the near impossibility of effectively applying an exemption when reservations are booked, paid and used at different times which could fall inside and outside the holiday.

Applicability to hotel & lodging businesses

The change this year will mean that the sales tax holiday will largely have no impact on most hotels. Room tax is not exempt. Food in restaurants and banquets are not exempt. In cases where retail outlets at hotels sell clothing or certain types of supplies that qualify, those items would be exempt. See the official definitions and price limits here. For more information contact joe@ohla.org or call 614-461-6462.