Note: This tool is only available to sellers located in the United States and Canada.
As a venue, Etsy can't provide specific tax advice. It's up to each seller to research their local laws about collecting and reporting taxes for their Etsy sales. Tax regulations can vary greatly by location. If you're unsure how to charge tax, we encourage you to consult an accountant or other experts in your area.
Check out this Seller Handbook article for tips to determine if you need to charge tax.
If you do need to charge tax, sellers located in the United States can use the sales tax tool to specify a tax rate for each US state (by state, zipcode, or range of zip codes). Canadian sellers can specify a tax rate by province.
Note: Etsy automatically calculates, collects, and remits sales tax for items shipped to Washington state. Read more here.
Adding a tax rate
Your shop needs to be open to the public. After you open you'll need to add the tax rate and then go back and apply it to your listings as described below.
- If your shop is already open, go to Shop Manager > Finances > Payment settings. Then, select the Sales Tax tab.
- If your shop is located in the United States, select a US state, zip code range, or zip code. If your shop is located in Canada, select a province.
- Enter a tax rate in decimal format. For example, enter “8.125” if you want a tax rate of 8 1/8%.
- Repeat steps 2-3 for any additional locations and tax rates you wish to collect.
- Be sure to click Save.
After adding a tax rate to your shop, new listings you create will have the tax rate applied by default. We recommend checking your older listings, especially listings created before setting up a tax rate, to make sure these items are marked as taxable and that the tax rate is applied.
If you don't want to charge tax on an item, when creating or editing a listing, uncheck the box next to the item's price.
Sales tax is based on shipping location.
For instance, if you're in the state of California and you set a tax rate for California, a New York state buyer wouldn't be charged tax.
The rate will be applied to the most localized area you specify
You can set a rate both for the US state of California and a specific zip code within California, 90210. Buyers with shipping addresses in the 90210 zip code would be charged the rate for 90210; all other Californian shoppers would be charged the California rate.
If a buyer uses a coupon code, the tax will be calculated from the discounted price.
You can set tax rates between 1.0000% and 25.0000%.
While Etsy provides a means to apply taxes to your transactions, we do not warrant that these tax amounts will fully satisfy your sales and use tax reporting obligations. For a final determination on these matters, please seek assistance from your tax advisor.
Note: Depending on where you live, you may need to set a sales tax rate if you offer gift wrapping services. Read more here.