Vehicle Taxability

All title transfers and exemption claims on motor vehicles and other equipment is regularly audited by the Ohio Department of Taxation in accordance with Ohio Revised Code (RC) 4505.09(B)(2)(c) and 5739.13 to verify if the sales tax liability has been satisfied.

When a motor vehicle title is transferred, the price of the vehicle is reported to a Clerk of Courts Title Office and sales tax is paid on the price of the vehicle.   

 

Key Resources

Casual Sales – These sales are defined as the transfer of a motor vehicle title between two individuals who are not affiliated with a licensed dealership. Learn more here.  

Exemptions & Taxability – Ohio law allows certain vehicle transactions to be made without paying sales tax. Find out more here.

Leasing & Dealer Transactions – This link is for licensed dealerships to obtain more information on the application of sales tax to their transactions including leases.   

Aircraft – The sale of an aircraft may be subject to sales tax. This page will provide additional resources regarding the taxability of aircraft.

Watercraft & Outboard Motors – The transfer of a watercraft or outboard motor is generally taxed in the same manner as motor vehicles. Get the information you need here.

Downloads – Forms, questionnaires, and additional resources can be found on this page. Please click on the download link in order to see a list of available forms to download.

Did you receive a letter from us?  - This link will provide more information on notices that are sent and how best to respond.

 

Frequently Asked Questions Tool

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on  the category you are interested in  .  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

  

Is the consumer entitled to a tax credit for taxes paid to another state?

Generally, yes. Credit is given for the amount of sales or use tax legally paid to another state or jurisdiction. Proof of tax paid to the other jurisdiction must be provided to the clerk of courts. If the amount paid to the other jurisdiction equals or exceeds the Ohio use tax due, no additional tax is due.

For vehicles leased outside Ohio after February 1, 2002, and subsequently moved into Ohio, the balance of the lease charges due after the leased vehicle is brought into Ohio is subject to Ohio’s up front sales tax. If the other state taxed the lease up front, credit is given for the other state’s sales or use tax. If the other state’s tax equals or exceeds the Ohio tax, no additional tax is due. If the other state taxed the lease on the monthly payments, no credit is allowed for the tax paid to the other state for the months prior to the vehicle entering Ohio. Tax is due “up front” on the total of the balance of the remaining lease payments.  

No credit is given for sales, use or similar taxes paid to a foreign country, such as Canada, Mexico, Germany, etc.

Is the consumer entitled to a tax credit for taxes paid to another state?

Generally, yes. Credit is given for the amount of sales or use tax legally paid to another state or jurisdiction. Proof of tax paid to the other jurisdiction must be provided to the clerk of courts. If the amount paid to the other jurisdiction equals or exceeds the Ohio use tax due, no additional tax is due.

For vehicles leased outside Ohio after February 1, 2002, and subsequently moved into Ohio, the balance of the lease charges due after the leased vehicle is brought into Ohio is subject to Ohio’s up front sales tax. If the other state taxed the lease up front, credit is given for the other state’s sales or use tax. If the other state’s tax equals or exceeds the Ohio tax, no additional tax is due. If the other state taxed the lease on the monthly payments, no credit is allowed for the tax paid to the other state for the months prior to the vehicle entering Ohio. Tax is due “up front” on the total of the balance of the remaining lease payments.  

No credit is given for sales, use or similar taxes paid to a foreign country, such as Canada, Mexico, Germany, etc.

Is the consumer entitled to a tax credit for taxes paid to another state?

Generally, yes. Credit is given for the amount of sales or use tax legally paid to another state or jurisdiction. Proof of tax paid to the other jurisdiction must be provided to the clerk of courts. If the amount paid to the other jurisdiction equals or exceeds the Ohio use tax due, no additional tax is due.

For vehicles leased outside Ohio after February 1, 2002, and subsequently moved into Ohio, the balance of the lease charges due after the leased vehicle is brought into Ohio is subject to Ohio’s up front sales tax. If the other state taxed the lease up front, credit is given for the other state’s sales or use tax. If the other state’s tax equals or exceeds the Ohio tax, no additional tax is due. If the other state taxed the lease on the monthly payments, no credit is allowed for the tax paid to the other state for the months prior to the vehicle entering Ohio. Tax is due “up front” on the total of the balance of the remaining lease payments.  

No credit is given for sales, use or similar taxes paid to a foreign country, such as Canada, Mexico, Germany, etc.