Free guide for contractors
Do contractors charge sales tax in Ohio?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
OH Ohio
Usually no tax on the invoiceNo, for construction contracts. Ohio contractors are the consumers of their materials, but carpet, landscaping and several services are taxable.
In Ohio a construction contract is not a sale. The construction contractor is the consumer of the materials it incorporates into real property, whether the job is new construction or an addition or alteration.
Some work is never a construction contract. The sale and installation of carpeting, and of landscaping and lawn care materials, are taxable sales. An agreement to transfer and install a business fixture is a sale, not a construction contract.
Repair and installation of tangible personal property, landscaping and lawn care, building maintenance and janitorial service, and exterminating are taxable services.
It turns on: whether the work is a construction contract or a sale such as carpeting or a business fixture; whether the work is a taxable service, such as landscaping, janitorial work or exterminating.
Watch out for
- On exempt projects, such as government, 501(c)(3), church and hospital buildings, a contractor may buy materials exempt with certificates (Ohio Adm. Code 5703-9-14(D), (I), (K)).
- Rule 5703-9-14 was revised effective October 1, 2026 (Ohio Adm. Code 5703-9-14).
“The construction contractor is the consumer of such tangible personal property.”R.C. 5739.01(B)(5)