How State Sales Tax Applies to Etsy Orders

Based on applicable tax laws, Etsy will calculate, collect and remit sales tax for orders dispatched to customers in the following state(s):

 

* The rates in these states include home rule cities, which are local governments that impose and administer their own local sales and use taxes. Etsy is required to collect sales taxes in home rule cities in these locations.

Sellers don’t have to update their sales tax settings in their shop for orders dispatched to the states mentioned in this article. The sales tax settings in Shop Manager are used for states/regions where Etsy doesn't automatically collect sales tax. No action is required on your part to collect sales tax from buyers in the states listed in this article.

Etsy doesn't charge any additional processing fees for calculating, collecting and remitting sales tax.

Sellers cannot opt out of Etsy automatically collecting sales tax for items shipped to customers located in the states mentioned in this article.

How much sales tax was remitted by Etsy for my order?

To determine how much sales tax was remitted by Etsy for a particular order, download a spreadsheet of your orders. Learn how to download the spreadsheet.

Take the gross total of the order and subtract fees. The difference between this amount and the net amount of the order equals what Etsy remitted to the state.

Do I need to charge sales tax on sales in the states in this article?

Etsy sellers do not need to remit sales tax on their Etsy sales to a state where Etsy remits sales tax on your orders.

Purchases via PayPal

If a buyer in one of the states mentioned in this article purchases the order via PayPal, Etsy will supply the seller with the sales tax as a part of the payment. Then Etsy will net the sales tax from your Payment account so that we can remit the tax to the relevant state.

The sales tax will be included in the order information, and the fee for the sales tax will be on your Payment account – including the relevant order number. The fee will be summed in the subcategory in your fee summary under Sales Tax Fees.

Digital listings

Etsy uses a seller's chosen item classifications in conjunction with each state's sales tax laws to determine whether or not to apply sales tax.

For orders dispatched to customers in all other states

If you sell goods on Etsy and reside in the US or Canada, you have the option of either including applicable taxes in your listing prices, or excluding applicable taxes from your listing prices and then using Etsy's sales tax tool to calculate the tax owed on each sale, with the exception of Quebec where Etsy is responsible for collecting VAT on digital goods in certain cases.

To access the sales tax tool go to Shop Manager > Finances > Payment settings. Then, select the Sales Tax tab.

Questions about sales tax?

Ask the Community

US sales tax

Many US states recently started collecting sales tax on online purchases. If you’re in one of these states, you may be charged sales tax on your Etsy order. We are required by your state’s laws to charge this tax.

If you’re reaching out because you are exempt from paying US sales tax, please contact us through the Sales tax exemption option instead. This option will route your request to a specialist who can review your request and process a refund if necessary.

Sales tax outside the US

If you live outside of the US and are charged sales tax on your Etsy order, this is most likely the Value-added tax (VAT) required in your country. Etsy is required by your country’s law to charge VAT on some purchases.

Etsy is required to collect and remit VAT on digital items purchased by buyers in many countries around the world.

You’ll see the total price with VAT included on each listing that applies, as well as in your basket, invoice, and purchase page.

If you require a VAT invoice for your physical purchase, please contact the seller directly. As independent business owners, each seller is responsible for issuing a VAT invoice when required. Here is how you can contact the seller for help with this.

When a package is delivered internationally, it may be subject to import taxes, customs duties, and/or fees imposed (e.g. handling fees) by the destination country. These charges are typically due once the package arrives in the destination country. Learn more about customs and import taxes.

Did this help?
Why didn’t this article help you? (select all that apply, required question)

Thanks for your feedback!

Still have questions?

Contact support