Taxes / State tax rules / Ohio
Selling on eBay, Poshmark or Etsy from Ohio: sales tax and 1099-K rules
On a marketplace sale to an Ohio buyer, a marketplace facilitator with substantial nexus in Ohio is treated as the seller and collects the sales tax, and an out-of-state seller that sells only through a marketplace that collects and pays the tax for it does not need an Ohio seller's use tax license. The Ohio Department of Taxation pages we checked say nothing about a separate Ohio 1099-K rule.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Ohio in short
- General sales tax:
- Yes, 5.75% state rate
- Marketplace facilitator law:
- Yes: Ohio Rev. Code 5741.01(E), (I)(4) and (Q) (Am. Sub. H.B. 166, 2019), since Sep 1, 2019
- When a marketplace must collect:
- presumed substantial nexus if, in the current or preceding calendar year, aggregate gross receipts from Ohio sales, its own plus those it facilitates, exceed $100,000, or it makes or facilitates 200 or more separate Ohio transactions
- Form 1099-K:
- No state rule stated on the pages checked
Who collects the tax on a marketplace sale
A marketplace facilitator with substantial nexus is treated as the seller of every sale it facilitates for marketplace sellers; it holds a seller's use tax license, collects the tax from Ohio buyers and files returns. Ohio law makes it the seller starting the first month that begins at least 30 days after it first has substantial nexus.
If you sell only through marketplaces
The Department says an out-of-state seller with more than $100,000 or 200 Ohio sales needs a seller's use tax license, but not if it only uses an online marketplace that collects and pays the tax for it. Its marketplace section adds that a seller does not need to collect when the marketplace collects and pays for it.
Registration, resale certificates and what changes when you also sell direct have their own page: Ohio: seller's permit and resale certificate rules.
The law: Ohio Rev. Code 5741.01(E), (I)(4) and (Q) (Am. Sub. H.B. 166, 2019), effective .
"a marketplace facilitator shall be treated as the "seller" with respect to all sales facilitated by the marketplace facilitator on behalf of one or more marketplace sellers"
"A marketplace facilitator is presumed to have substantial nexus with this state if either of the following apply in the current or preceding calendar year:"
Sources: Sales and Use Tax; Section 5741.01, Ohio Revised Code, Use tax definitions.
Ohio's sales tax
The state rate is 5.75%, and counties and regional transit authorities add tax in 0.05% steps, up to a combined maximum of 8.75%.
"When combined with the state rate—which is 5.75 percent—the overall tax rate (state, local, and transit) cannot exceed 8.75 percent."
Sources: Sales and Use Tax.
Form 1099-K: Ohio and the federal test
The Department of Taxation sales and use tax page read for this page says nothing about an Ohio Form 1099-K requirement.
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: Sales and Use Tax.
Worked examples
State tax on a $40 marketplace sale to Columbus
At the 5.75% state rate, a $40.00 taxable item carries $2.30 of state tax. County and transit tax can add up to 3 percentage points, for at most 8.75%, or $3.50 on the same item. The facilitator collects it.
200 Ohio sales, all on marketplaces
An out-of-state seller makes 210 Ohio sales in 2026, all on a marketplace that collects and pays Ohio tax. That is over the 200-sale line, but the Department says no seller's use tax license is needed when the marketplace collects and pays the tax for it.
Edge cases and details
- Ohio's page says the nexus rules took effect August 1, 2019, and a facilitator that already met a threshold started collecting September 1, 2019; R.C. 5741.01 treats a facilitator as the seller from the first month beginning at least 30 days after it first has substantial nexus.
- An entity that only provides advertising services is not a marketplace facilitator, the Department says.
- A facilitator must do at least one activity from each of three groups, including payment processing or collecting payment for the seller, to be facilitating a sale under Ohio's definition.
What to do
- If every Ohio sale goes through marketplaces that collect Ohio tax, keep their statements or reports showing that; the Department ties the no-license answer to the marketplace collecting and paying.
- If you also sell direct, count all Ohio sales and transactions for the current and previous calendar year against the $100,000 and 200 tests, and check with a tax professional.
- Businesses with a physical presence in Ohio register through a county vendor's license, the Department says; Ohio-based sellers should confirm their status with the Department.
Common questions
Do I need an Ohio license if I only sell on marketplaces?
For an out-of-state seller, the Department says no license is needed if the marketplace collects and pays the tax for it, even past $100,000 or 200 Ohio sales.
When did Ohio marketplace facilitators start collecting?
September 1, 2019, under Am. Sub. H.B. 166, for facilitators with substantial nexus in Ohio.
Does Ohio have its own 1099-K threshold?
The Department of Taxation pages we checked say nothing about an Ohio 1099-K rule.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Ohio: seller's permit and resale certificate rules
- North Dakota: sales tax and 1099-K rules
- Oklahoma: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes Ohio's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Ohio Department of Taxation: Sales and Use Tax; read . 5.75% rate and 8.75% cap, September 1, 2019 start, marketplace-only license rule, nexus test.
- Ohio Legislative Service Commission: Section 5741.01, Ohio Revised Code, Use tax definitions; read . Facilitator treated as seller; $100,000 or 200-transaction presumption; definition.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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