Short-Term Rental Taxes in Ohio: STR Investor's Complete 2025 Guide
0–3.75% graduated state income tax (low) | Conforms to federal bonus depreciation | 5.75% state sales tax + county lodging tax | Top markets: Hocking Hills, Put-in-Bay, Lake Erie islands, Columbus, Amish Country | Investor-friendly tax environment
Ohio is an underrated destination for STR investing, offering a combination of affordable property prices, low state income taxes, full bonus depreciation conformity, and markets with genuine demand drivers. Hocking Hills — with its iconic rock formations and waterfalls — is one of the Midwest's top cabin rental markets. Put-in-Bay and South Bass Island on Lake Erie offer a unique island STR experience. Columbus, the Amish Country, and the Lake Erie wine region round out a diversified Ohio STR landscape.
Ohio State Income Tax: One of the Lowest in the Midwest
Ohio's maximum state income tax rate is 3.75% — among the lowest in the Midwest. The graduated structure means lower-income investors pay even less. Ohio also has no municipal income tax on rental income from properties located in most rural markets (municipal income taxes apply in cities like Columbus, Cleveland, and Cincinnati, but primarily to wages earned there). For most cabin investors in rural Ohio, the effective state tax rate on rental profits will be 2.5–3.75%.
Ohio Lodging and Sales Taxes by Market
| County / Market | State Sales Tax | County Lodging Tax | Approximate Total |
|---|---|---|---|
| Hocking County (Hocking Hills) | 5.75% | 4% | 9.75% |
| Ottawa County (Put-in-Bay) | 5.75% | 5% | 10.75% |
| Erie County (Sandusky/Cedar Point area) | 5.75% | 4.5% | 10.25% |
| Franklin County (Columbus) | 5.75% | 4% | 9.75% |
| Cuyahoga County (Cleveland) | 5.75% | 4% | 9.75% |
| Wayne County (Amish Country) | 5.75% | 3% | 8.75% |
| Lake County (Lake Erie wine region) | 5.75% | 3.5% | 9.25% |
| Butler County (Cincinnati north) | 5.75% | 3% | 8.75% |
Hocking Hills: Ohio's Premier STR Market
Hocking Hills State Park — famous for Ash Cave, Old Man's Cave, Cedar Falls, and Conkle's Hollow — draws over 4 million visitors annually and sits within a 2-hour drive of Columbus, Cleveland, and Cincinnati. The STR market here is overwhelmingly cabin-based, with properties ranging from basic one-bedroom retreats to luxury 6-bedroom lodges with private pools and hot tubs.
Hocking Hills STR properties have excellent cost segregation profiles. Outdoor amenities (hot tubs, fire pits, decks with forest views, covered porches) are standard and often represent 25–30% of property value. A $400,000 Hocking Hills cabin might generate $100,000–$130,000 in bonus-eligible deductions.
Put-in-Bay and Lake Erie Islands
Put-in-Bay on South Bass Island is one of Ohio's most unique STR markets. The island is accessible only by ferry from Port Clinton and Sandusky, creating natural demand concentration. Summer (June–August) is intense with boaters, day-trippers, and weekend visitors. The season is shorter than mainland markets, but peak-season ADRs can be exceptional. Average stays are typically 1–3 nights, well within STR loophole parameters.
Ohio STR Licensing
Ohio does not have a statewide STR licensing program, but local jurisdictions vary. Most rural markets like Hocking Hills require simple registration with the county auditor for lodging tax purposes. Columbus requires a short-term rental license. Put-in-Bay and South Bass Island have local island-specific regulations. Check with your specific township and county before operating.
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Ohio's low income tax + full bonus depreciation conformity = excellent after-tax returns. Get your free cost segregation estimate.
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