Based on applicable tax laws, Etsy will calculate, collect, and remit sales tax for orders shipped to customers in the following state(s):
- Alabama, as of 07/01/2019
- Arizona, as of 10/01/2019
- Arkansas, as of 07/01/2019
- California, as of 10/01/2019
- Colorado*, as of 10/01/2019
- Connecticut, as of 02/01/2019
- District of Columbia, as of 06/01/2019
- Hawaii, as of 01/01/2020
- Georgia, as of 04/01/2020
- Idaho, as of 06/01/2019
- Illinois, as of 01/01/2020
- Indiana, as of 07/01/2019
- Iowa, as of 02/01/2019
- Kentucky, as of 07/01/2019
- Louisiana, as of 07/01/2020
- Maine, as of 10/01/2019
- Maryland, as of 10/01/2019
- Massachusetts, as of 10/01/2019
- Michigan, as of 01/01/2020
- Minnesota, as of 10/01/2018
- Mississippi, as of 07/01/2020
- Nebraska, as of 06/01/2019
- Nevada, as of 10/01/2019
- New Jersey, as of 04/01/2019
- New Mexico, as of 07/01/2019
- New York, as of 06/01/2019
- North Carolina, as of 02/01/2020
- North Dakota, as of 10/01/2019
- Ohio, as of 09/01/2019
- Oklahoma, as of 08/01/2018
- Pennsylvania, as of 04/01/2018
- Rhode Island, as of 07/01/2019
- South Carolina, as of 02/01/2019
- South Dakota, as of 03/01/2019
- Tennessee, as of 10/1/2020
- Texas, as of 10/01/2019
- Utah, as of 10/01/2019
- Vermont, as of 07/01/2019
- Virginia, as of 07/01/2019
- Washington, as of 01/01/2018
- West Virginia, as of 07/01/2019
- Wisconsin, as of 10/01/2019
- Wyoming, as of 07/01/2019
* Colorado rates 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 Colorado.
Sellers don’t have to update their sales tax settings in their shop for orders shipped 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 can't 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.
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 shipped 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.
Questions about 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 have a tax-exempt status, but are still charged sales tax, click I still need help and we can assist. In your message:
- Include the order number(s) for the order(s) that should be tax exempt
- Include the amount of sales tax on the exempt order(s)
- Attach your tax exemption form