Ohio’s 5.75% sales tax rate applies to all car sales, but your specific rate will also depend on your county and local taxes. The average combined state and local sales tax in Ohio is 7.223%.
It’s easy to get distracted by sticker prices and deals when we’re shopping for cars, but additional costs—like taxes and fees—are what often wind up breaking our budgets. Your state and county sales taxes are often the largest of these added costs, so it’s important to know what to expect before you start shopping.
Ohio’s sales tax rate is fairly average compared to the rest of the country, but different counties’ local rates can turn those averages into highs. That’s why car insurance
genius and super app Jerry
has compiled a guide to car sales tax in Ohio just for you. We'll even show you how to lower your Ohio car insurance cost
s! How much is the car sales tax rate in Ohio?
Sales tax in Ohio is 5.75% and applies to all car purchases—even used cars. In addition to sales tax, you’ll also be responsible for the county or local sales tax.
Residents in Cuyahoga, Lake, Lorain, Medina, and Summit counties will pay 8% sales tax—the highest rates in the state. Outside of these counties, you can expect to pay an average of about 7.223% sales tax. Wayne County residents enjoy the lowest combined sales tax rate of only 7%.
How are car trade-ins taxed in Ohio?
While sales tax applies to all car purchases in Ohio, it does not apply to the value of any vehicle you might trade in
. Instead, trade-in credit is deducted from the taxable price of the vehicle you’re purchasing. So, let’s imagine you’re buying a new Ford F150
in Cleveland
for $39,000, and the trade-in value of your old Dodge Ram
is $3,600. You’ll only pay 8% Cuyahoga County combined sales tax on $35,400 of your new truck purchase. While your trade-in is exempt from sales tax, that doesn’t mean any other credits to your sale are. The taxable price of your vehicle is calculated before dealer rebates and incentives, so even if you’re getting dealer cash or a rebate, you’ll still pay taxes on the vehicle price before that credit is subtracted.
How to calculate sales tax on a car in Ohio
Tax-rates.org
makes calculating taxes on your new vehicle purchase easy, no matter where you live. Just plug in your car dealership’s zip code and the purchase price of your vehicle (minus any trade-in credit, of course), and you’ll get a complete sales-tax estimate in seconds.Key Takeaway Combine Ohio’s statewide 5.75% sales tax with your county’s local sales tax rate to calculate the total sales tax you’ll pay on your car.
Exemptions from Ohio car sales tax
In general, all sales of motor vehicles in Ohio are subject to sales tax—however, there are a few exceptions. Vehicles purchased for the following uses may qualify for an exemption from Ohio state sales tax:
Nonprofit organizations and churches
Transportation services and public utilities
To see if you’re eligible for an exemption, visit the Ohio Department of Taxation
webpage. How to estimate Ohio tax, title, and registration fees
Sales tax is just one of the additional costs you’ll pay when you buy a new vehicle in Ohio. In addition, you’ll need to budget for title, registration, plate transfer, and documentation fees.
Here’s a rundown of the additional costs associated with buying a car in Ohio:
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| Up to 10% of purchase price before tax, title, and registration fees |
You can determine your exact registration fee by checking the Ohio Bureau of Motor Vehicle fees page
. MORE: Is car insurance tax deductible?
How to find affordable car insurance in Ohio
The final cost you’ll need to budget for when buying a new car is car insurance, but with help from the Jerry
app, you’ll be surprised at how affordable that can be. Jerry is your ultra-talented car insurance broker for life. No need to sit across from him at a desk—Jerry is a trusted insurance comparison app
! It takes less than a minute to sign up, and after providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They can even help cancel your old policy! So why do all that extra work when Jerry can do it better? “I was paying $350 a month for my new car. With Jerry
, I set up a new policy in under 30 minutes that will save me over $1000 a year!” —Mariah K.
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