Ohio sales tax for contractors
What we found on official Ohio government pages about sales tax and tax setup for contractors. Each line shows its source and the date it was read. This is general information, not tax or legal advice. Rules change: verify with your CPA before you rely on any of it.
How contractors are taxed
construction contractor is consumer, pays tax on materials; exempt projects (charity, gov, church etc.) use exemption certificate; lump-sum vs T&M not addressed
Source: https://codes.ohio.gov/assets/laws/administrative-code/authenticated/5703/0/9/5703-9-14_20261001.pdf. Last verified 2026-11-02.
Repair labor
repair/installation generally taxable unless exempt, but contractors don't charge tax on construction; landscaping and building maintenance/janitorial/snow removal taxable at >=$5,000 annual sales; security and pest control taxable
Source: https://tax.ohio.gov/business/sales-and-use-tax/taxability. Last verified 2026-11-02.
New-employer unemployment tax
2026 new employer 2.70% general, 5.70% construction; wage base $9,000
Source: https://dam.assets.ohio.gov/image/upload/jfs.ohio.gov/ouio/uctax/2026RateDetails.pdf. Last verified 2026-11-02.
What this page does not cover
Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.
How BossHours helps
BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.
See also the contractor guides and free tools.
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