Based on applicable US tax laws, Etsy automatically calculates, collects, and remits sales tax on behalf of sellers located anywhere in the world when:
- An order is sent to a recipient in the US; or
- A digital order is purchased by a US buyer; and
- The order meets certain criteria
Whether Etsy calculates sales tax on orders may depend on whether the item is a physical item or digital item listed as instant download or made to order. Sales tax charges may also depend on the specific taxing authority treatment.
In compliance with various US state-enacted marketplace facilitator statutes, Etsy is acting as a “marketplace facilitator” as it pertains to online seller transactions within the Etsy platform.
Etsy is a registered sales tax vendor in the states and territories listed in the dropdown below and will collect sales tax on all taxable sales of tangible personal property referred to physical items or digital items.
| US State or Territory | Does Etsy collect sales tax on physical goods? | Does Etsy collect sales tax on instant downloads? | Does Etsy collect sales tax on made-to-order downloads? |
|
Yes |
Yes |
No |
|
|
Yes |
No |
No |
|
|
American Samoa |
No |
No |
No |
|
Yes |
Yes |
No |
|
|
Yes |
Yes** |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes** |
No |
|
|
Yes |
Yes |
Yes |
|
|
Delaware |
No |
No |
No |
|
Yes |
Yes |
No |
|
|
Federated States of Micronesia |
No |
No |
No |
|
Yes |
No |
Yes |
|
|
Yes |
No |
No |
|
|
Guam |
No |
Yes |
Yes |
|
Yes |
Yes |
Yes |
|
|
Yes |
Yes** |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes** |
No |
|
|
Yes |
Yes |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes** |
No |
|
|
Yes |
Yes |
No |
|
|
Yes |
Yes |
No |
|
|
Marshall Islands |
No |
No |
No |
|
Yes |
Yes |
No |
|
|
Yes |
No |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes** |
Yes |
|
|
Yes |
Yes |
No |
|
|
Missouri |
No |
No |
No |
|
Montana |
No |
No |
No |
|
Yes |
Yes** |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes** |
No |
|
|
New Hampshire |
No |
No |
No |
|
Yes |
Yes |
Yes |
|
|
Yes |
No |
No |
|
|
Yes |
Yes |
No |
|
|
Yes |
No |
No |
|
|
Northern Mariana Islands |
No |
No |
No |
|
Yes |
Yes** |
No |
|
|
Yes |
No |
No |
|
|
Oregon |
No |
No |
No |
|
Palau |
No |
No |
No |
|
Yes |
Yes |
No |
|
|
Yes |
Yes** |
Yes |
|
|
Yes |
Yes** |
No |
|
|
Yes |
No |
No |
|
|
Yes |
Yes |
Yes |
|
|
Yes |
Yes** |
Yes |
|
|
Yes |
Yes |
Yes |
|
|
Yes |
Yes |
No |
|
|
Yes |
Yes** |
No |
|
|
Virgin Islands |
No |
No |
No |
|
Yes |
No |
No |
|
|
Yes |
Yes |
No |
|
|
Yes |
No |
Yes |
|
|
Wisconsin |
Yes |
Yes |
No |
|
Yes |
Yes** |
No |
* The rates in these states and territories 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.
**Not all digital items in these states will be taxed.
No action is required on your part to collect sales tax from buyers where Etsy collects and remits sales tax on your behalf. You don’t have to update your sales tax settings in their shop for orders delivered to these states and territories. The sales tax settings in Shop Manager are used for states/regions where Etsy doesn't automatically collect sales tax.
Etsy doesn't charge any additional processing fees for calculating, collecting and remitting sales tax.
Sellers can't opt out of Etsy automatically collecting sales tax.
How much sales tax was remitted by Etsy for my order?
The amount of the sales tax that Etsy collects and remits will be summed for your reference in your Payment account under your Activity summary, in the Sales and fees section, next to Sales tax paid by buyer (Remitted).
To see how much sales tax was remitted by Etsy for a particular order, download a spreadsheet of your orders. Learn how to download the spreadsheet.
Purchases via standalone Paypal
If the buyer paid directly to your own PayPal account instead of Etsy Payments, and the order meets the criteria for Etsy to remit sales tax on your behalf, Etsy will supply you 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.
For orders delivered to customers in all other US states and territories where Etsy does not have an obligation to collect and remit on your behalf
If you sell goods on Etsy to buyers who 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.
- Sign in and go to Shop Manager.
- Open Finances.
- Select Payment settings.
- Select the Sales Tax tab.
Questions about sales tax?
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.