Based on applicable tax laws, Etsy will calculate, collect, and remit sales tax for orders shipped to customers in the following state(s):
- Washington, as of 01/01/2018
- Pennsylvania, as of 04/01/2018
- Oklahoma, as of 08/01/2018
- Minnesota, as of 10/01/2018
- Connecticut, as of 02/01/2019
- South Carolina, as of 02/01/2019
- Iowa, as of 02/01/2019
- South Dakota, as of 03/01/2019
- New Jersey, as of 04/01/2019
- District of Columbia, as of 06/01/2019
- Idaho, as of 06/01/2019
- Nebraska, as of 06/01/2019
- New York, as of 06/01/2019
- Alabama, as of 07/01/2019
- Arkansas, as of 07/01/2019
- Kentucky, as of 07/01/2019
- New Mexico, as of 07/01/2019
- Rhode Island, as of 07/01/2019
- Vermont, as of 07/01/2019
- Virginia, as of 07/01/2019
- West Virginia, as of 07/01/2019
- Wyoming, as of 07/01/2019
- Indiana, as of 07/01/2019
- Ohio, as of 09/01/2019
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.