How US State Sales Tax Applies to Etsy Orders

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 ships 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?

Alabama

Yes

Yes

No

Alaska*

Yes

No

No

American Samoa

No

No

No

Arizona

Yes

Yes

No

Arkansas

Yes

Yes**

No

California

Yes

No

No

Colorado*

Yes

Yes**

No

Connecticut

Yes

Yes

Yes

Delaware

No

No

No

District of Columbia

Yes

Yes

No

Federated States of Micronesia

No

No

No

Florida

Yes

No

Yes

Georgia

Yes

No

No

Guam

No

Yes

Yes

Hawaii

Yes

Yes

Yes

Idaho

Yes

Yes**

No

Illinois

Yes

No

No

Indiana

Yes

Yes**

No

Iowa

Yes

Yes

No

Kansas

Yes

No

No

Kentucky

Yes

Yes**

No

Louisiana

Yes

Yes

No

Maine

Yes

Yes

No

Marshall Islands

No

No

No

Maryland

Yes

Yes

No

Massachusetts

Yes

No

No

Michigan

Yes

No

No

Minnesota

Yes

Yes**

Yes

Mississippi

Yes

Yes

No

Missouri

No

No

No

Montana

No

No

No

Nebraska

Yes

Yes**

No

Nevada

Yes

No

No

New Jersey

Yes

Yes**

No

New Hampshire

No

No

No

New Mexico

Yes

Yes

Yes

New York

Yes

No

No

North Carolina

Yes

Yes

No

North Dakota

Yes

No

No

Northern Mariana Islands

No

No

No

Ohio

Yes

Yes**

No

Oklahoma

Yes

No

No

Oregon

No

No

No

Palau

No

No

No

Pennsylvania

Yes

Yes

No

Puerto Rico

Yes

Yes**

Yes

Rhode Island

Yes

Yes**

No

South Carolina

Yes

No

No

South Dakota

Yes

Yes

Yes

Tennessee

Yes

Yes**

Yes

Texas

Yes

Yes

Yes

Utah

Yes

Yes

No

Vermont

Yes

Yes**

No

Virgin Islands

No

No

No

Virginia

Yes

No

No

Washington

Yes

Yes

No

West Virginia

Yes

No

Yes

Wisconsin

Yes

Yes

No

Wyoming

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 shipped 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 shipped 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.

  1. Sign in and go to Shop Manager.
  2. Open Finances.
  3. Select Payment settings.
  4. 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 cart, 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.

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