Short answer
Ohio taxes vehicle sales at 5.75% state plus local add-ons (depends on buyer address). Ohio taxes the price after the trade-in is deducted. The deduction applies to new-vehicle purchases from new-vehicle dealers only. Ohio gives no trade-in tax deduction on used-vehicle sales. Ohio exempts out-of-state buyers only under specific conditions: the buyer signs Form STEC-NR certifying the vehicle will be removed from Ohio and titled out of state; buyers registering in Arizona, California, Florida, Indiana, Massachusetts, Michigan, or South Carolina are not exempt and pay the lesser of Ohio tax computed at 6% or their home state's tax. Ohio credits sales tax legally paid to another state, so the same dollars are not taxed twice. This covers a retail purchase from a dealer; leases and private-party sales follow different rules in most states.
Ohio car sales tax quick facts
Last verified July 5, 2026| Sales tax rate on vehicles | 5.75% state plus local add-ons (depends on buyer address)[1] |
| Trade-in credit | Ohio taxes the price after the trade-in is deducted. The deduction applies to new-vehicle purchases from new-vehicle dealers only. Ohio gives no trade-in tax deduction on used-vehicle sales.[2] |
| Selling to an out-of-state buyer | Ohio exempts out-of-state buyers only under specific conditions: the buyer signs Form STEC-NR certifying the vehicle will be removed from Ohio and titled out of state; buyers registering in Arizona, California, Florida, Indiana, Massachusetts, Michigan, or South Carolina are not exempt and pay the lesser of Ohio tax computed at 6% or their home state's tax.[2] |
| Credit for tax paid to another state | Ohio credits sales tax legally paid to another state, so the same dollars are not taxed twice.[3] |
| Dealer doc fee | Capped[4] · not taxable[5] |
| Temp tag for the drive home | Ohio dealers issue a temporary registration good for 45 days from issuance for the drive home; it cannot be renewed or transferred. Out-of-state buyers drive out on it while their home-state title work runs on the STEC-NR paperwork. (valid 45 days)[6] |
| Out-of-state buyer registration | Out-of-state buyers normally do not register in Ohio; they sign Form STEC-NR and title in their home state. Anyone who establishes Ohio residency has 30 days to transfer their out-of-state license, title, and registration to Ohio.[7] |
From the desk
Ohio deals price differently county by county, and the out-of-state rules run on a state-by-state chart the desk actually has to check before quoting. The nonresident bulletin is the one document every Ohio biller should keep printed at the desk.
Selling to an out-of-state buyer in Ohio
Ohio exempts out-of-state buyers only under specific conditions: the buyer signs Form STEC-NR certifying the vehicle will be removed from Ohio and titled out of state; buyers registering in Arizona, California, Florida, Indiana, Massachusetts, Michigan, or South Carolina are not exempt and pay the lesser of Ohio tax computed at 6% or their home state's tax.[2]
The paperwork that makes the exemption real is Form STEC-NR, completed at delivery. Miss it and the exemption is the dealer's problem, not the buyer's.
Either way, the desk still owns the rest of the cross-border chain: the title work, the temp tag, and making sure the deal doesn't go quiet while paperwork sits. Tracking every in-flight title, temp tag, and out-of-state registration is exactly what Voltra's title tracking is for.
Buying in Ohio from out of state
If you live in another state and buy in Ohio, the deciding rule is where the vehicle gets registered: your home state's tax applies at registration, and what happens at the Ohio sale depends on the row above. Ohio credits sales tax legally paid to another state, so the same dollars are not taxed twice.[3]
Registration and temp tags
Out-of-state buyers normally do not register in Ohio; they sign Form STEC-NR and title in their home state. Anyone who establishes Ohio residency has 30 days to transfer their out-of-state license, title, and registration to Ohio.[7] Ohio dealers issue a temporary registration good for 45 days from issuance for the drive home; it cannot be renewed or transferred. Out-of-state buyers drive out on it while their home-state title work runs on the STEC-NR paperwork. Validity: 45 days.[6]
Worth knowing about Ohio
- Ohio's trade-in tax break is new-vehicles-only. A used-car buyer trading in gets zero tax deduction, which surprises desks coming from full-credit states.
- Doc fees stopped being taxable on May 1, 2023. Plenty of third-party sites still say taxable; the state's own release says otherwise.
- Ohio dealers collect tax on out-of-state buyers from exactly seven states (AZ, CA, FL, IN, MA, MI, SC). Everyone else signs the STEC-NR and pays at home.
Bordering states
Cross-border deals from Ohio most often involve Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Every pair works differently: check both states’ rules before you write a check.
Vehicle-type exceptions
Watercraft and outboard motors bought from an Ohio-licensed watercraft dealer get the trade-in deduction on new or used units, unlike motor vehicles (new-vehicle purchases only). The nonresident STEC-NR paperwork also covers off-highway motorcycles and all-purpose vehicles.[8]
Sources
- codes.ohio.gov/ohio-revised-code/section-5739.02 · verified 2026-07-05
- dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/ST2007-04_nonresident_release_rev3-23.pdf · verified 2026-07-05
- codes.ohio.gov/ohio-revised-code/section-5741.02 · verified 2026-07-05
- codes.ohio.gov/ohio-revised-code/section-4517.261 · verified 2026-07-05
- dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/ST1982-01_rev4-23.pdf · verified 2026-07-05
- codes.ohio.gov/ohio-revised-code/section-4503.182 · verified 2026-07-05
- www.bmv.ohio.gov/new-to-ohio.aspx · verified 2026-07-05
- codes.ohio.gov/ohio-revised-code/section-5739.01 · verified 2026-07-05