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State guides / Ohio

State guide

Ohio tobacco and vapor compliance

Ohio taxes cigars, other tobacco products and vapor at the distributor level, with monthly electronic returns, an annual license and a Master Settlement Agreement report that every licensed OTP distributor files, even with no activity.

Checked against Ohio statutes, regulations and agency guidance on September 28, 2026. Cigarettes are outside our scope and are covered here only where their rules reach other products.

17%of wholesale price on most tobacco products. Little cigars pay 37%.
$0.67maximum tax per premium cigar from July 1, 2026. The cap adjusts every July 1.
23rdmonthly tobacco and vapor return due date. File electronically, even with no sales.
Feb 1distributor license renewal. $1,000 per location, or $125 for vapor only.

Show what applies to you

Pick your business and products. The guide hides the licenses, returns and rules that do not apply to that profile.

Ohio in brief

Ohio taxes other tobacco products (OTP) at 17% of the wholesale price, little cigars at 37%, and premium cigars at the lesser of 17% or a per-cigar cap that adjusts each July 1 for inflation ($0.67 per cigar from July 1, 2026). Vapor products are taxed at 1 cent per 0.1 mL (liquid) or 0.1 gram (non-liquid), which equals 10 cents per mL or gram. The tax falls on the first licensed distributor or vapor distributor that brings untaxed product into Ohio, including out-of-state distributors selling to Ohio buyers and retailers that receive untaxed product. Distributors need an annual license from the Ohio Department of Taxation ($1,000 per location for OTP or combined OTP/vapor, $125 for vapor only), running February 1 to January 31. OTP manufacturers and importers register annually by February 1 and file a monthly manufacturer report (OTP98), due the 23rd under R.C. 5743.66(B) although the administrative rule says the end of the month. Returns are monthly, due the 23rd, filed and paid electronically through the Ohio Business Gateway, with a 2.5% timely-filing discount. Every OTP return filer must also file the MSA 60 Master Settlement Agreement report by the last day of the month after the period, on the same monthly or quarterly schedule as its OTP return, even with no activity; the penalty is up to $250 for each month or part of a month it is late. Nicotine pouches are not clearly taxed. Ohio has no statewide flavor ban. A state law blocking local tobacco rules (R.C. 9.681) was struck down for the challenging cities and is pending at the Ohio Supreme Court, so city flavor bans such as Columbus remain in effect.

Licenses and permits

What each type of business needs before selling into Ohio.

Other Tobacco Products and Vapor Products Distributor License (OTP or combined OTP/vapor)

Who needs it
Distributor or wholesaler, US manufacturer, Importer, Manufacturer outside the US, Retailer
Agency
Ohio Department of Taxation
Fee
$1,000 per place of business per year; prorated for licenses issued after February 1 (minimum $200); $25 to transfer to a new location or replace a license
Bond
No standard bond; the commissioner may require security if collection appears at risk (R.C. 5743.52)
Term
One year, February 1 to January 31
Renewal
Annually by February 1 using form OTP1; the OTP page says renewals are mailed with a check or money order, not filed electronically

Required for anyone distributing tobacco products in Ohio. 'Distributor' includes manufacturers selling to Ohio retailers, in-state wholesalers receiving untaxed product, out-of-state wholesalers selling to Ohio buyers, and retailers that receive untaxed product. License must be posted conspicuously. Unlicensed distribution carries a penalty of up to $1,000. The license can be suspended if the holder fails to file or pay for two consecutive periods or three periods within twelve months.

All products except nicotine pouches

R.C. 5743.01, 5743.61; Form OTP1 Source

Vapor Products Only Distributor License

Who needs it
Distributor or wholesaler, US manufacturer, Importer, Manufacturer outside the US, Retailer
Agency
Ohio Department of Taxation
Fee
$125 per place of business per year
Bond
None stated
Term
One year, February 1 to January 31
Renewal
Annually by February 1 (form OTP1)

A 'vapor distributor' includes anyone selling vapor products to retailers, a retailer receiving untaxed vapor products, a secondary manufacturer, or a wholesaler receiving vapor products. A distributor licensed only for vapor is exempt from the MSA 60 report.

Vapor products

R.C. 5743.01, 5743.61, 5743.03 Source

OTP Manufacturer / Importer Registration

Who needs it
US manufacturer, Manufacturer outside the US, Importer
Agency
Ohio Department of Taxation
Fee
No fee stated in the rule
Bond
None stated
Term
One year beginning February 1
Renewal
Register by February 1 each year (form OTP8)

All manufacturers and importers of OTP must apply to the commissioner. Registered manufacturers/importers must also file a monthly report (OTP98) on or before the 23rd day of each month for the preceding month (R.C. 5743.66(B)); the rule says by the end of each month unless another frequency is granted. The rule was amended effective January 13, 2026. Failure to file reports can lead to revocation and confiscation of product held in violation.

All products except vapor products, nicotine pouches

R.C. 5743.66; Ohio Adm.Code 5703-15-20; Form OTP8 Source

Seller registration to collect OTP/vapor use tax from Ohio consumers

Who needs it
Online or remote seller
Agency
Ohio Department of Taxation
Fee
None stated
Bond
None stated
Term
Ongoing
Renewal
N/A

Sellers with substantial nexus (as defined in R.C. 5741.01) that deliver tobacco or vapor products to Ohio consumers must register and collect the tax; out-of-state sellers may register voluntarily. Unclear on ODT pages which form is used; see open questions.

All products except nicotine pouches

R.C. 5743.62 Source

Excise taxes

Rates, what they apply to and who pays them.

Other tobacco products excise tax

Rate
17% of wholesale price
Base
Wholesale price: the manufacturer's invoice price to unaffiliated distributors, including federal excise tax, excluding payment-method discounts
Who pays
Licensed distributor that first receives untaxed product in Ohio, or out-of-state distributor selling to Ohio purchasers
Effective
In effect since February 1, 1993

2.5% discount for timely filing and payment. Whether wraps with no tobacco and nicotine pouches are 'tobacco products' depends on whether they are made from tobacco for smoking or chewing, or are snuff.

Machine-made cigars and cigarillosWraps and leafPipe tobaccoRoll-your-ownSmokeless

R.C. 5743.01, 5743.51 Source

Little cigar tax

Rate
37% of wholesale price
Base
Wholesale price
Who pays
Distributor
Effective
Invoices dated on or after October 1, 2013 (HB 59)

Little cigar means a roll for smoking with an integrated cellulose acetate or other filter, wrapped in a substance containing tobacco.

Little cigars

R.C. 5743.01, 5743.51 Source

Premium cigar tax (capped)

Rate
Lesser of 17% of wholesale price or the maximum tax amount per cigar: $0.67 from July 1, 2026 ($0.65 from 7/1/2025, $0.64 from 7/1/2024, $0.61 from 7/1/2023, $0.58 from 7/1/2022)
Base
Wholesale price, per cigar
Who pays
Distributor
Effective
Cap in place since HB 166 (2019); adjusts each July 1

Premium cigar: made wholly or partly of tobacco, leaf binder and leaf wrapper, no filter or tip, weighing at least 6 pounds per 1,000. The cap is $0.50 plus a CPI adjustment since January 1, 2017, rounded to the nearest cent. Machine-made cigars that meet the definition can qualify; product that fails any element pays the full 17%.

Premium cigars

R.C. 5743.01 (maximum tax amount, premium cigar), 5743.51 Source

Vapor products tax

Rate
1 cent per 0.1 mL (liquid) or per 0.1 gram (non-liquid), i.e. 10 cents per mL or gram
Base
Vapor volume of nicotine-containing liquid or substance
Who pays
Vapor distributor that first receives the product in Ohio, or out-of-state distributor selling to Ohio purchasers; consumer if they receive untaxed product
Effective
October 1, 2019

Vapor product means a liquid or other substance that contains nicotine and is depleted in an electronic smoking product. Devices without nicotine liquid are not vapor products. Invoices must show total volume (to 0.1 mL) or weight (to 0.1 g).

Vapor products

R.C. 5743.01, 5743.51, 5743.54 Source

Seller and consumer use tax on OTP and vapor products

Rate
Same rates as the distributor tax (17%, 37% little cigars, premium cap, 1 cent per 0.1 mL/g vapor)
Base
Products delivered to or used by Ohio consumers on which the distributor tax was not paid
Who pays
Sellers with substantial nexus that deliver to Ohio consumers (R.C. 5743.62); consumers who receive untaxed product (R.C. 5743.63)
Effective
Current versions effective September 30, 2025 (HB 96, 136th GA)

Relevant to online sellers shipping into Ohio from out of state. Monthly return due the 23rd with 2.5% discount.

All products except nicotine pouches

R.C. 5743.62, 5743.63 Source

Returns and reports

What gets filed, how often and when it is due.

In-State Distributor OTP/Vapor Tax Return

Form
OTP2
How often
Monthly
Due
23rd day of the month following the reporting period
Zero returns
Yes, file even with no activity
Where
Ohio Business Gateway (ASCII V4, XML V1.8, or manual entry); payment by ACH debit or Treasurer of State 1-877-338-6446

Electronic filing and payment required by statute. 2.5% discount if filed and paid on time. The commissioner may authorize longer filing periods for low-volume filers. A return must be filed each month even if no taxable transactions occurred.

All products except nicotine pouches

R.C. 5743.52 Source

Out-of-State Distributor OTP/Vapor Tax Return

Form
OTP6
How often
Monthly
Due
23rd day of the month following the reporting period
Zero returns
Yes, file even with no activity
Where
Ohio Business Gateway

For licensed distributors outside Ohio selling to Ohio purchasers. A return must be filed each month even if no taxable transactions occurred.

All products except nicotine pouches

R.C. 5743.52 Source

Master Settlement Agreement Report

Form
MSA 60
How often
Monthly
Due
Last day of the month following the reporting period; monthly or quarterly on the same filing status as the OTP return
Zero returns
Yes, file even with no activity
Where
unclear (see open questions)

Per the form instructions, filed by all stamping cigarette wholesalers and licensed OTP distributors (R.C. 5743.03, 5743.52 and 5743.62 return filers), except a distributor licensed solely for vapor, monthly or quarterly on the same filing status as the OTP return. It lists quantities of cigarettes and roll-your-own tobacco (in ounces) of non-participating manufacturer (NPM) brands; cigars are not among the products reported. The instructions say an MSA 60 'must be filed regardless of activity', so a licensed OTP distributor with no cigarette or RYO activity still files a zero report. Penalty up to $250 for each month or portion of a month the report is late, so one report three months late, or three missed monthly reports, could produce $750.

Roll-your-own

R.C. 5743.03; Form MSA 60 instructions (Rev. 3/08) Source

OTP Manufacturer / Importer Monthly Report

Form
OTP98
How often
Monthly
Due
23rd day of each month for the preceding month (R.C. 5743.66(B)); Ohio Adm.Code 5703-15-20 says by the end of each month unless the commissioner grants an alternative frequency
Where
unclear; ODT lists OTP98 among Gateway forms

Must detail RYO sales by brand and quantity, all OTP sales to Ohio distributors for the prior month, a current price list, invoice numbers, dates and amounts.

All products except vapor products, nicotine pouches

R.C. 5743.66(B); Ohio Adm.Code 5703-15-20 (eff. January 13, 2026) Source

Seller use tax return for OTP/vapor sold to Ohio consumers

Form
unclear
How often
Monthly
Due
23rd day of the month following the reporting period
Where
unclear

Applies to registered sellers delivering untaxed tobacco or vapor products to Ohio consumers. 2.5% discount if timely.

All products except nicotine pouches

R.C. 5743.62 Source

Ohio PACT Act report

Form
OPAT 1 (tobacco/ENDS); OPAC 1 (cigarettes and RYO)
How often
Monthly
Due
10th day of the month following the shipments
Where
Email to PACTAct@tax.ohio.gov

For anyone selling, transferring or shipping cigarettes, RYO, smokeless tobacco or ENDS into Ohio in interstate commerce for profit. Cigars and pipe tobacco are not PACT Act products.

Roll-your-ownSmokelessVapor products

15 U.S.C. 376; ODT PACT Act page Source

Product listings and directories

Registries a product must be on before it can be sold.

Attorney General Tobacco Directory and manufacturer certification (cigarettes and RYO)

Who files
US manufacturer, Manufacturer outside the US, Importer, Distributor or wholesaler, Retailer
Fee
None stated
Deadline
Annual certification by April 30

Roll-your-own brand families (and cigarettes) must be listed on the AG Tobacco Directory to be sold, offered or possessed for sale in Ohio. Manufacturers certify annually; non-participating manufacturers make escrow deposits and certify quarterly/supplementally through the OHCig Certification Portal.

Roll-your-own

R.C. 1346.05; R.C. Chapter 1346 Source

Product, flavor and marketing rules

Minimum age 21

Effective
Current version effective March 20, 2025 (SB 100)

No manufacturer, distributor, wholesaler or retailer may sell or give tobacco products, alternative nicotine products or rolling papers to anyone under 21. Vending machines only in restricted areas or under direct supervision. Fines start at up to $250 and escalate to $1,500 for repeat violations.

All products

R.C. 2927.02 Source

Statewide flavor restriction

Effective
N/A

No statewide flavor ban. Flavor restrictions were proposed in the introduced HB 96 (2025) but dropped from the House-passed version. Some cities restrict flavors locally (see local).

R.C. 9.681 (local preemption, enjoined) Source

Display of distributor license

Effective
Current

Distributor licenses must be posted and kept displayed in a conspicuous place at the licensed business.

All products except nicotine pouches

R.C. 5743.61 Source

Shipping to consumers

Rules for online and other remote sales delivered to consumers.

Shipping rule

Selling OTP, alternative nicotine products or rolling papers over the internet or by another remote method without age verification is prohibited. Delivery providers must verify the recipient is 21 or older.

All products

R.C. 2927.02 Source

Shipping rule

Sellers with substantial nexus that deliver tobacco or vapor products to Ohio consumers must register, collect the excise-equivalent use tax, and file monthly by the 23rd. Consumers who receive untaxed product owe the tax themselves.

All products except nicotine pouches

R.C. 5743.62, 5743.63 Source

Shipping rule

Federal PACT Act: sellers shipping RYO, smokeless or ENDS into Ohio register with ATF and file monthly reports with ODT by the 10th (forms OPAT 1 / OPAC 1). USPS mailing of these products is generally prohibited.

Roll-your-ownSmokelessVapor products

15 U.S.C. 375-378; ODT PACT Act page Source

Local rules

Local rule

R.C. 9.681 (HB 33, effective April 24, 2024; amended by HB 96 effective September 30, 2025) bars political subdivisions from imposing standards, requirements, taxes, fees or charges on tobacco and alternative nicotine products. The Tenth District Court of Appeals held it unconstitutional under the Home Rule Amendment on July 8, 2025 and affirmed a permanent injunction against enforcing it against the plaintiff cities (Columbus and about 20 others including Cincinnati, Cleveland and Toledo). The Ohio Supreme Court heard argument June 9, 2026; no decision found as of September 23, 2026.

R.C. 9.681; Columbus v. State, 2025-Ohio-2408 (10th Dist.) Source

Local rule

Columbus bans sale of flavored tobacco products, including flavored cigars and cigarillos, flavored vapes and e-liquids, and flavored nicotine pouches, from January 1, 2024. Whether premium cigars or pipe tobacco are exempt is not stated on the city's list.

City of Columbus, Restricted Flavored Tobacco Products notice Source

Local rule

Some cities require local tobacco retail licenses, for example Cincinnati (applications through eztrak.cagis.org), with inspections and underage compliance checks.

Cincinnati Health Department TRL program Source

Records and audits

Records

Distributors and vapor distributors must keep complete records of all purchases and sales, and keep invoices, bills of lading and other documents for three years from the later of the return due date or filing date. Records must be open for inspection during business hours.

R.C. 5743.54 Source

Records

Invoices must show the tax has been paid and the distributor's account number. Vapor invoices must show total volume (to 0.1 mL) or weight (to 0.1 g).

R.C. 5743.54 (eff. September 30, 2025) Source

Records

Non-participating manufacturers must keep sales records for five years.

R.C. 1346.05 Source

Where filers get caught in Ohio

The problems we see most often, and the penalties behind them.

The MSA 60 report is due even with no activity

The MSA 60 instructions say the report is filed by all stamping cigarette wholesalers and licensed OTP distributors, monthly or quarterly on the same filing status as the OTP return, by the last day of the month after the period, and must be filed regardless of activity. Only vapor-only distributors are exempt. The penalty is up to $250 for each month or part of a month a report is late, so a few missed zero reports add up quickly.

A month with no sales still needs a return

The Department of Taxation requires a tobacco or vapor return every month even if no taxable transactions occurred. Filing and paying on time also earns a 2.5% discount that a late filer loses.

Missed filings can cost you the license

A distributor license can be suspended after two consecutive missed filings, or three in 12 months. Payments applied to the wrong account or period do not count as a filed return, so confirm every filing was received.

The premium cigar cap depends on cigar counts

Premium cigars pay 17% of wholesale or the per-cigar cap, whichever is less. Your invoices and records need to show cigar counts to support the lower amount.

City rules may apply on top of the state

Columbus and other cities enforce local flavor bans while the Ohio Supreme Court decides whether state law can block them. Check each city you ship into.

Penalties

Penalty

Late OTP/vapor return: additional charge up to the greater of $50 or 10% of the tax due, plus interest at the R.C. 5703.47 rate from the due date. The 2.5% discount is lost.

R.C. 5743.52 Source

Penalty

Late MSA 60 report: up to $250 for each month or portion of a month the report is late. Applies even to licensed OTP distributors with no RYO or cigarettes because the form instructions require the report regardless of activity.

R.C. 5743.03 Source

Penalty

License suspension if a distributor fails to file or pay for two consecutive periods or three periods in twelve months. Unlicensed distribution penalty up to $1,000.

R.C. 5743.61 Source

Penalty

OTP manufacturer/importer registration can be revoked for failure to file required reports; OTP held in violation is subject to confiscation.

Ohio Adm.Code 5703-15-20 Source

Penalty

Selling unlisted RYO brands is a first-degree misdemeanor, a fourth-degree felony for repeat offenses; product is contraband.

R.C. 1346.05 Source

Recent changes

July 1, 2026

Premium cigar per-cigar cap rose to $0.67 (from $0.65).

R.C. 5743.01, 5743.51 Source

January 13, 2026

Ohio Adm.Code 5703-15-20 (manufacturer/importer licensing, registration and monthly reports) amended.

Ohio Adm.Code 5703-15-20 Source

April 1, 2026

AG launched the OHCig Certification Portal for annual, quarterly and supplemental manufacturer certifications.

R.C. Chapter 1346 Source

September 30, 2025

HB 96 (FY2026-27 budget) amended R.C. 5743.52, 5743.54, 5743.62, 5743.63 and 9.681. Rates and the 23rd-of-month due date are unchanged. Proposed cigarette tax increase, flavor restrictions and vapor distribution license changes from the introduced bill were not enacted.

HB 96, 136th GA Source

July 8, 2025 (appeals decision); argued June 9, 2026

Tenth District struck down R.C. 9.681 local preemption as applied to plaintiff cities; appeal argued at the Ohio Supreme Court, decision pending.

Columbus v. State, 2025-Ohio-2408 Source

March 20, 2025

R.C. 2927.02 (age 21 and remote sale age verification) amended by SB 100.

R.C. 2927.02 Source

Agencies and online portals

Keep a record of every Ohio account and who controls it. Clients can track these in the portal.

Ohio Department of Taxation, Excise and Energy Tax Division

Handles
Administers OTP and vapor excise taxes, distributor licenses, OTP manufacturer/importer registration, MSA 60 reporting, PACT Act reports, seller and consumer use tax on OTP/vapor. Contact excisecigarette@tax.ohio.gov, 1-855-466-3921, P.O. Box 530, Columbus, OH 43216-0530.
Online
Ohio Business Gateway (returns, ASCII/XML/manual) and OH|TAX eServices (myportal.tax.ohio.gov)

Source

Ohio Attorney General, Tobacco Enforcement Unit

Handles
Maintains the Tobacco Directory for cigarette and roll-your-own brand families, manufacturer certifications and NPM escrow (R.C. Chapter 1346). Contact TobaccoEnforcement@OhioAGO.gov, 614-387-5600.
Online
OHCig Certification Portal (annual, quarterly and supplemental certifications from April 1, 2026)

Source

County auditors

Handles
Issue retail cigarette dealer licenses (cigarettes only; out of scope except for stores that also sell cigarettes).
Online
Varies by county

Source

City health departments (e.g., Columbus Public Health, Cincinnati Health Department)

Handles
Local tobacco retail licensing and local flavor restrictions where cities enforce them.
Online
Cincinnati: https://eztrak.cagis.org/

Source

How HNM Compliance handles Ohio

We track every Ohio deadline your products trigger, prepare each filing from your data, send it for your approval and file it. Your footprint review confirms which of these apply to you before anything is scheduled. Every engagement is quoted in writing before work begins, and government fees, taxes and bonds are passed through at cost.

EssentialLicense and permit tracking, renewals prepared and filed, calendar, reminders and portal.
StandardEverything in Essential, plus the state's recurring tobacco, vapor or nicotine excise tax return. Includes up to 50 active SKUs per state.
PACT Act monthly reportingFor roll-your-own, smokeless, vapor and covered nicotine products shipped across state lines.
Product listing setupInitial vapor directory certification or California UTL submission, including SKUs added later.
Catch-up filingBack returns or reports owed before service began.
Agency notice handlingGathering records, correcting and resubmitting a filing.
New license or permit applicationState fees and bonds separate.

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Sources

Checked September 28, 2026. Rates, fees and deadlines change; we recheck them before scheduling your filings. This guide is general information, not legal or tax advice.

  1. R.C. 5743.01, 5743.61; Form OTP1: codes.ohio.gov/ohio-revised-code/section-5743.61
  2. R.C. 5743.01, 5743.61, 5743.03: tax.ohio.gov/business/tobacco-tax/vapor-products
  3. R.C. 5743.66; Ohio Adm.Code 5703-15-20; Form OTP8: codes.ohio.gov/ohio-administrative-code/rule-5703-15-20
  4. R.C. 5743.62: codes.ohio.gov/ohio-revised-code/section-5743.62
  5. R.C. 5743.01, 5743.51: tax.ohio.gov/business/tobacco-tax/other-tobacco-products
  6. R.C. 5743.01, 5743.51: codes.ohio.gov/ohio-revised-code/section-5743.51
  7. R.C. 5743.03; Form MSA 60 instructions (Rev. 3/08): dam.assets.ohio.gov/image/upload/tax.ohio.gov/forms/excise/cigarettes/
  8. R.C. 5743.66(B); Ohio Adm.Code 5703-15-20 (eff. January 13, 2026): codes.ohio.gov/ohio-revised-code/section-5743.66
  9. 15 U.S.C. 376; ODT PACT Act page: tax.ohio.gov/business/tobacco-tax/pact-act
  10. R.C. 1346.05; R.C. Chapter 1346: www.ohioattorneygeneral.gov/Tobacco-Enforcement
  11. R.C. 2927.02: codes.ohio.gov/ohio-revised-code/section-2927.02
  12. R.C. 9.681 (local preemption, enjoined): codes.ohio.gov/ohio-revised-code/section-9.681
  13. R.C. 9.681; Columbus v. State, 2025-Ohio-2408 (10th Dist.): www.supremecourt.ohio.gov/rod/docs/pdf/10/2025/2025-Ohio-2408.pdf
  14. City of Columbus, Restricted Flavored Tobacco Products notice: www.columbus.gov/files/sharedassets/city/v/1/public-health/tobacco-pre
  15. Cincinnati Health Department TRL program: www.cincinnati-oh.gov/health/chd-programs/healthy-communities-program/
  16. R.C. 5743.54: codes.ohio.gov/ohio-revised-code/section-5743.54
  17. R.C. 1346.05: codes.ohio.gov/ohio-revised-code/section-1346.05
  18. R.C. 5743.52: codes.ohio.gov/ohio-revised-code/section-5743.52
  19. R.C. 5743.03: codes.ohio.gov/ohio-revised-code/section-5743.03
  20. Columbus v. State, 2025-Ohio-2408: www.courtnewsohio.gov/cases/2026/SCO/previews/0609-10/0609-10.asp

See exactly what you owe in Ohio.

A footprint review maps every license, return, report and listing your products trigger, with a deadline calendar you keep either way.

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