Ohio Sales Tax on Services 2026: Taxable vs Exempt List

Are services taxed in Ohio? Yes. Ohio explicitly taxes specific "enumerated" services including landscaping, car and appliance repairs, cleaning, gym memberships, personal care, and storage units. Professional services — legal, accounting, medical, and basic hair styling — are generally exempt. The rate is your county's combined sales tax (6.50%–8.00%).

Staring at a bill from your landscaper and wondering why there's sales tax tacked on? We've all been there. Most of us think sales tax only applies when we buy something we can hold, like a laptop or a coffee. But when you start paying people to fix that laptop or mow your lawn, the rules suddenly get murky. The reality is, Ohio doesn't just tax physical goods—it aggressively taxes specific services, too. If you're a business owner sweating over compliance or a consumer trying to decode your receipt, let's break down exactly what Ohio wants a cut of.

The Rule: Enumerated Services Are Taxed

Here's the math on Ohio law: if a service isn't specifically listed (or "enumerated") in the Ohio Revised Code, it's generally tax-free. If it is on the list, you're paying your local combined state and county rate. Search all service and property rules in our interactive Is It Taxable in Ohio? Checker.

Let's look at the most common services where Ohio expects a slice.

Is My Service Taxable? Quick Reference

Common Services & Tax Status

1. Landscaping and Lawn Care

Paying someone to mow the grass, trim trees, or provide lawn care? You owe sales tax under R.C. § 5739.01(B)(3)(g). The definition in R.C. § 5739.01(DD) excludes providers with less than $5,000 in landscaping and lawn care sales during the calendar year, so very small operators do not collect tax; everyone above that line does.

Many Ohio landscaping businesses get blindsided by this. In r/lawncare, an Ohio member confirmed their company was required to collect sales tax on lawn and garden services — a fact many small operators discover only when an auditor comes knocking.

2. Snow Removal

Winter in Ohio means plowing, salting, and snow blowing. Snow removal by any mechanized means is its own taxable service under R.C. § 5739.01(B)(3)(r). It is excluded only when the provider has less than $5,000 in snow removal sales during the calendar year. Shoveling by hand is not covered.

3. Repair and Installation

If you pay someone to fix a physical item, that labor is taxable. This includes:

• Car repairs at the mechanic
• Fixing a broken refrigerator
• Phone screen replacements and computer repairs

The Trench Truth: Ohio is notorious for taxing services that are exempt in neighboring states—like building maintenance, janitorial services, landscaping, and even certain digital services. A lot of independent landscaping or cleaning business owners start out small and don't realize they are legally required to register and collect sales tax from day one. By the time they grow and hire an accountant, they realize they owe thousands in back taxes. You can't exactly go back to a homeowner you mowed a lawn for two years ago and ask for 7% sales tax. It ruins margins instantly.

4. Cleaning and Janitorial Services

Keeping a building clean costs extra in taxes. Office cleaning, carpet cleaning, window washing, and exterminators are all on the hook for sales tax.

5. Personal Care Services

Self-care isn't entirely tax-free. You'll pay sales tax on:

• Hair removal
• Tattoos and piercings
• Massages (unless a doctor prescribes it)
• Skin care and cosmetics

Good news: Basic haircuts and styling are exempt. For salon owners and stylists managing the divide between exempt service fees and taxable retail product sales, read our in-depth guide on Ohio salon and barber sales tax.

6. Information and Computer Services

If you use a service that processes data or provides access to computer equipment, it's likely taxable. This includes electronic information services and system design (if tied to selling computer equipment).

7. Other Notable Hits

• Storage units: Renting a space for your extra stuff is taxable.
• Towing: Vehicle towing gets hit with sales tax.
• Gym memberships: Paying to sweat at a fitness facility carries sales tax.

Services That Escape The Tax

If it's not on Ohio's enumerated list, you don't pay sales tax. The biggest safe zones include:

• Professional Services: Lawyers, accountants, doctors, and architects don't charge sales tax.
• Construction Labor: Building a permanent structure (real property) means the consumer doesn't pay sales tax on the labor.
• Hair Salons: Haircuts, coloring, and styling remain untouched by the state.

Do You Charge Sales Tax on Labor in Ohio?

One of the most frequent questions from tradespeople, repair technicians, and small business owners is whether labor charges require sales tax in Ohio.

The statutory answer under Ohio Revised Code § 5739.01(B)(3) depends entirely on the legal classification of the property being worked on:

1. Labor on Tangible Personal Property (Taxable): If you are repairing, servicing, installing, or modifying movable personal property, your labor is fully taxable. This includes automotive mechanics, appliance repair technicians, computer hardware specialists, furniture reupholsterers, and equipment servicing crews. Even if the customer supplies their own parts and you only bill for pure labor hours, R.C. 5739.01(B)(3)(a)-(b) mandates charging sales tax on the labor.
2. Labor on Real Property (Exempt): If you are performing work that improves, constructs, repairs, or alters real estate or permanent structures (buildings, land, roofs, plumbing, concrete foundations, paving, permanent electrical wiring), the labor is exempt from sales tax under R.C. § 5739.01(B)(5). Under Ohio construction contract rules, the contractor is legally considered the consumer of all building materials purchased and pays sales tax when buying supplies from vendors; the contractor does not bill sales tax to the building owner on labor.
3. Mixed Invoices and Lump-Sum Contracts: If a contractor performs a job involving both personal property (taxable) and real property improvements (exempt), the charges should be clearly itemized. If a job is billed as an unitemized lump sum, Ohio Department of Taxation auditors may assess sales tax on the entire invoice amount.

Ohio Taxable and Exempt Services List (Summary Checklist)

For business compliance and accounts payable verification, here is the statutory breakdown:

• Taxable Services: Landscaping and lawn care (and mechanized snow removal grossing over $5,000/yr), private janitorial/cleaning, motor vehicle and appliance repair labor, commercial information/data processing services, towing, personal care (tattooing, massage, tanning), self-storage unit rentals, and telecommunications.
• Exempt Services: Professional accounting and legal services, medical and dental healthcare, architectural and engineering design, real property construction labor, licensed daycare, and basic hair salon care.

How to Calculate the Damage

When a service is taxable, you pay the exact same combined state and county rate as you would for a physical item. The rate is based on where the service is received.

Service Tax Rates by Ohio County

Contractors, mechanics, cleaners, and commercial service providers should verify the local rate for their service territory:

If you are dispatching crews or billing clients based on customer postal codes, look up the exact rate in seconds using the Ohio ZIP Code Sales Tax Calculator.

Need to figure out what the pre-tax price was on that landscaping bill? Use our Reverse Sales Tax Calculator to back the tax out of the total.

Whichever side of the line a service falls on, the rate applied to it is your county's combined rate. All 88 are listed in the Ohio sales tax rate table, and businesses billing exempt customers should also read the exemption certificate guide.

Frequently Asked Questions

Does Ohio have sales tax on services? Yes, on specific enumerated services. Ohio taxes landscaping, cleaning, repair labor, personal care, storage, and information services at your county's combined rate (6.50%–8.00%). Services not named in the Ohio Revised Code — like legal, accounting, and medical work — are not taxed.

What services are exempt from sales tax in Ohio? Professional services (legal, accounting, medical, architectural), construction labor that improves real property, and basic hair styling are exempt. If a service isn't specifically "enumerated" in ORC 5739.01, it's tax-free.

Do mechanics charge sales tax on labor in Ohio? Yes. Repairing physical property is a taxable service. You will pay sales tax on both the parts and the labor.

Is lawn care taxable in Ohio? Yes. Landscaping and lawn care services are taxable in Ohio under R.C. 5739.01(B)(3)(g), as defined in R.C. 5739.01(DD). Providers with less than $5,000 in landscaping sales in a calendar year are excluded. Mechanized snow removal is a separate taxable service under R.C. 5739.01(B)(3)(r), with its own exclusion for providers under $5,000 in snow removal sales.

Are haircuts taxed in Ohio? No. Haircuts are exempt. But if your salon also gives you a massage or sells you shampoo, you will pay tax on those specific additions.

If you are running a service business and just realized you need to collect tax, do not panic. Start by checking what is taxable in Ohio to confirm the full picture, then follow the steps to get your Ohio vendor's license.

Sources

• Ohio Revised Code § 5739.01 — Taxable Services Defined
• Sales and Use Taxability — Ohio Department of Taxation
• Sales & Use Tax — Ohio Department of Taxation

Related Resources

• Ohio Sales Tax Calculator
• What is Taxable in Ohio?
• How to Calculate Ohio Sales Tax
• Ohio Sales Tax by County
• Reverse Sales Tax Calculator