Is contractor labor taxable in Ohio?
It depends on the property. Ohio taxes the LABOR on repair and maintenance work to COMMERCIAL or non-residential real property, but not the same work on residential property. Repair and maintenance is not the same thing as a capital improvement, which is exempt to the customer in Ohio — the classification of the job is what decides the tax, not the wording on the invoice. Source: Ohio Rev. Code §5739.01(B)(3); §5739.02 (building maintenance and janitorial service is a taxable service; real property construction contractors are consumers of materials).
| What | Ohio |
|---|---|
| Repair labor — residential | Not taxable |
| Repair labor — commercial | Taxable |
| Repair materials — residential | Not taxable |
| Repair materials — commercial | Taxable |
| Capital improvement | Exempt to the customer |
Where this gets more complicated
Ohio taxes building maintenance and janitorial service, and repair of tangible personal property, but not real property construction — on which the contractor is the consumer. The commercial flag here reflects the maintenance service, not construction repair.
Source
Ohio Rev. Code §5739.01(B)(3); §5739.02 (building maintenance and janitorial service is a taxable service; real property construction contractors are consumers of materials). — last checked 2026-09-15.
This is a summary of a state’s published guidance, not tax or legal advice. Rates and rules change, local jurisdictions add their own, and the treatment of a specific job depends on the contract and the work. Check the citation and speak to a CPA or a state tax adviser before relying on it.
How Seayora uses this rule
Seayora resolves this rule on every invoice a contractor raises — per line, from the job site’s own address — and prints the rate, the jurisdiction and this citation on the document itself, so the estimate a customer accepts is the invoice they are billed. Where the rule is more nuanced than a single answer, Seayora refuses to guess a total rather than quoting a confident wrong one.
Compare this rule in every state
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The same question in other states
- Arkansas
- Connecticut
- Hawaii
- Iowa
- Kansas
- Nebraska
- New Jersey
- New Mexico
- New York
- North Carolina
- South Dakota
- Texas