Based on applicable US State enacted marketplace facilitator tax laws, Etsy automatically calculates, collects, and remits US 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 and the rate that is charged will depend on the specific taxing authority treatment and hence on how the item is listed.
Etsy is a registered sales tax vendor in the states listed below and will collect sales tax on all taxable sales when required to.
Alabama, as of 07/01/2019
Alaska*, as of 4/1/2021
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
Florida, as of 07/01/2021
Georgia, as of 04/01/2020
Hawaii, as of 01/01/2020
Idaho, as of 06/01/2019
Illinois, as of 01/01/2020
Indiana, as of 07/01/2019
Iowa, as of 02/01/2019
Kansas, as of 07/01/2021
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
Missouri, as of 01/01/2023
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
Puerto Rico, as of 04/01/2021
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
The rates in some 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.
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 your 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 administration charges 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.
Colorado Retail Delivery Fee
Etsy is required by the state of Colorado to charge buyers an additional 29 cent fee for orders of physical goods shipped to addresses within the state of Colorado. The fee is not charged for sales of digital goods.
Etsy collects this fee from the buyer for each applicable order at checkout and remits it to the Colorado Department of Revenue. Buyers can see this fee in the order subtotal in their Shopping Cart and Checkout pages. If buyers order physical items from different sellers at checkout, the Colorado Retail Delivery Fee will be charged once for each applicable shop. This fee will not be refunded unless the refund is processed before the order is shipped.
If you are a seller on Etsy, no action is required on your part. Etsy collects from buyers (at checkout) and remits this fee on your behalf. Etsy then nets the fee from your total gross sale amount, just like a tax, to determine your net proceeds for the sale.
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 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.