Does Etsy collect sales tax?

Yes — in 46 states, the District of Columbia and Puerto Rico. Under marketplace facilitator laws Etsy calculates, collects and remits US sales tax for sellers located anywhere in the world. You can’t opt out, and Etsy charges nothing extra for it. Pick where an order ships to see whether Etsy collects there and since when — and what the tax still costs you in fees. Nothing you type leaves your browser.

Every fee on an order is itemised in the Etsy fee calculator; payment processing for every seller country is on Etsy’s payment processing fee.

When Etsy collects, in Etsy’s words

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.

Where Etsy collects, and since when

Etsy’s list as it stands in the 6 Jul 2026 copy of its help page: 46 states, the District of Columbia and Puerto Rico, each with the date Etsy started collecting. Etsy marks Alaska or Colorado with an asterisk; the note under its list reads: 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.

Delaware, Montana, New Hampshire or Oregon are not on Etsy’s list. For those, Etsy says: The sales tax settings in Shop Manager are used for states/regions where Etsy doesn’t automatically collect sales tax. Whether you owe anything there is a question for a tax professional; this page doesn’t answer it.

What it costs you

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. 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.

One fee does grow with the tax. Etsy’s payment processing page says: The fees are taken from the item’s total sale price, including its shipping fees, and any applicable sales tax. For a shop in the United States that is 3% of the sales tax — 30 cents for every $10 the buyer is charged. Other countries pay their own payment processing rate on the same base.

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.

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.

The Colorado Retail Delivery Fee

• Etsy is required by the state of Colorado to charge buyers an additional 31 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.
• 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.

Source: Etsy’s help page “How US State Sales Tax and Fees Applies to Etsy Orders” (6 Jul 2026 copy, the newest available); the payment processing sentence is from Etsy’s payment processing help page. This page is not tax advice.

Selling to buyers outside the US? Etsy collects VAT or GST itself in some countries too: Does Etsy collect VAT on your sales?

Common questions

Etsy’s sales tax rules on this page are quoted from Etsy’s help center; the payment processing rate is the same sourced, dated table as the Etsy fee calculator. Not tax advice. · Etsy fees USA · 1099-K checker · All free tools