Ohio rules, verified against the statutes
Out-the-door price in Ohio
How Ohio works
- Ohio sales tax is based on the county you live in, not where the dealership is u2014 the clerk of courts collects it at titling using your county of residence rate. Rates run 6.50% to 8.00% and change quarterly.
- Your trade-in only reduces the taxable amount when you are buying a NEW vehicle from a new-car dealer. On a used or certified pre-owned purchase, Ohio taxes the full price with no trade-in credit.
- Manufacturer rebates are taxed in Ohio u2014 tax is figured on the price before the rebate. A dealer's own cash discount does lower your taxable price.
- The dealer's documentary fee is NOT subject to sales tax in Ohio, and it is capped at the lesser of the current CPI-adjusted amount or 10% of the contract price.
- Extended warranties, service contracts and GAP are taxable when sold as part of the vehicle purchase agreement. Buying them later in a separate transaction is treated differently.
- Registration and plates are not included in the total above. In Ohio the dealer handles the title, but you go to a deputy registrar yourself for plates u2014 see the ownership notes for what to expect.
- If you live in Delaware, Fairfield, Licking, Union or Wood County, your rate can be 0.50 to 1.00 point higher than shown when your address falls inside the COTA or TARTA transit district. Check your exact address at thefinder.tax.ohio.gov.
Rules last verified Sep 5, 2026. Our methodology.
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Ohio OTD questions, answered
Does a trade-in reduce sales tax in Ohio?
Yes — Ohio taxes the difference: your trade-in's value is subtracted before tax is computed.
Are manufacturer rebates taxed in Ohio?
Effectively yes — tax is computed before the rebate is applied, so you pay tax on the pre-rebate price.
Is the doc fee capped in Ohio?
Yes — the cap is $398.00 (Ohio Rev. Code Sec. 4517.261(B)-(C) (lesser of CPI-adjusted amount or 10% of contract price, excl. tax/title/registration)). A dealer may not exceed it.