How State Sales Tax Applies to Etsy Orders

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

State

Effective Date

Washington

01/01/2018

Pennsylvania

04/01/2018

Oklahoma

08/01/2018

Minnesota

10/01/2018

Connecticut

02/01/2019

South Carolina

02/01/2019

Iowa

02/01/2019

South Dakota

03/01/2019

New Jersey

04/01/2019

District of Columbia

04/01/2019

Idaho

06/01/2019

Nebraska

06/01/2019

New York

06/01/2019

Alabama

07/01/2019

  • Sellers don’t have to update their sales tax settings in their shop for orders shipped to the states mentioned in this article. Those tax settings are used for states/regions where Etsy does not automatically collect sales tax.No action is required on your part.
  • There are no charges or fees for Etsy automatically 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.

 

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.

 

For orders shipped to customers in all other states

If you sell physical 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.

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

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