The Etsy Blog

Tax Tips: Everything You Need to Know About Sales Tax

Etsy.com handmade and vintage goods

Outright.com is back on the blog with straightforward tips on simplifying your accounting and putting the focus back on the creative. (Note: This info may only apply to U.S. sellers.)

When archaeologists dug out the ancient tombs of Egypt, they found marvelous artifacts like mummies and finely wrought jewelry; they also uncovered paintings of — no joke — sales tax collectors. It turns out that sales taxes on commodities such as cooking oil have been around ever since there were governing bodies to collect them.

These days, 45 U.S. states and the District of Columbia assess sales tax. If you’re an Etsy seller and you live in one of the states that require sales tax collection, this article will explain the fundamentals for you. For those who live in Alaska, Delaware, Montana, New Hampshire or Oregon ­— lucky you, you get a pass!

When Do I Collect Sales Tax?

Online sellers with “nexus” (legalese for “a physical presence” such as a store, office or employee) in a state or district with sales tax laws are required to collect on items sold and delivered within their state. In other words, if you run your business out of Virginia and someone from Virginia orders an item from you, then you are required to charge them sales tax. Sales tax rates levied by U.S. states are generally between 5-7%.

Sadly, you can’t just look up your state’s sales tax rate and call it a day. Cities, counties, municipalities, parishes and other smaller units within states are also able to levy sales tax, and according to the National Retail Federation, 7,500 jurisdictions (not including states) impose some kind of sales tax. These can run another 1-2% of the price of an item.

Note that most states allow you to collect sales tax at your local rate, not the local rate of the buyer. This means that you do not have to look up the local sales tax for every in-state buyer who makes a purchase from your store. So if you live in San Francisco, but sell to someone in San Jose, San Diego or San Jacinto, you can still charge sales tax at your local rate.

Some states though, like Washington, require sellers to charge buyers the buyer’s local tax rate. This means collecting very accurate address information and then figuring out the total amount of tax due based on where your buyer lives.

Fortunately, Etsy’s new Checkout process gives sellers a one-time, simple way to calculate and set up their sales tax collection down to the zip code. Just go to Sales Tax under Your Etsy and enter the rates for each U.S. state or zip code, Canadian province, or country where you would like to charge sales tax. When a shopper from that area buys from you, sales tax will automatically be charged. Find step-by-step instructions on setting up your Etsy sales tax collection in the Help section.

I’ve Collected All This Sales Tax. Now What?

It is your responsibility as an Etsy shop owner to report and remit the sales tax you’ve collected to the appropriate taxing authority. And every state collects in a different way. For instance, in California, state sales taxes are collected by the State Board of Equalization, which also issues mandatory sellers permits (required for sellers who sell tangible goods, such as Etsy sellers). To find out who administers sales tax in your state — and what you need to do to stay legal – find your state guide at Outright.

A note of caution: some sellers play it safe and collect just a little bit extra when it comes to things like shipping. (Etsy’s Sales Tax settings allow you to choose whether to apply tax to shipping and handling.) Resist the urge to collect extra sales tax! According to state law, any extra sales tax you collect belongs to them, too. Don’t ask us why — it’s the law. You’re doing yourself and your buyers a favor when you figure out sales tax right down to the nearest penny, and not a penny more.

And when this all feels a little overwhelming, just remember the basics: charge the right amount and keep track. You are participating in a tradition that is as old as the pyramids!

More Articles on Taxes

  • BlueIrisJewelry

    BlueIrisJewelry says:

    Very helpful--thank you!

    4 years ago

  • MyCreativeSideKG

    MyCreativeSideKG says:

    Good info! Thanks!!

    4 years ago

  • brooksbarrow

    brooksbarrow says:

    Good tips!

    4 years ago

  • sweetjane

    sweetjane says:

    Such a pain....thanks for the advice!

    4 years ago

  • PlumeandPetals

    PlumeandPetals says:

    Thanks for the info~!

    4 years ago

  • MireilleLagow

    MireilleLagow says:

    Great tips! Thanks!

    4 years ago

  • myvintagecrush

    myvintagecrush says:

    Love it! Thanks again, team Etsy!

    4 years ago

  • birdie1

    birdie1 says:

    Thanks! Etsy has makes it easy. Had one problem last week with a local buyer where sales tax should have been collected but wasn't. The buyer was sending item out of state as a gift - would that have anything to do with it?

    4 years ago

  • karenjcreations

    karenjcreations says:

    Good tips! Thanks:)

    4 years ago

  • halfpintsalvage

    halfpintsalvage says:

    Gonna get started on sales tax this morning. Thanks for the heads up!

    4 years ago

  • cieliblu

    cieliblu says:

    Thanks so much! What a huge help :)

    4 years ago

  • MerCurios

    MerCurios says:

    Great article. Unfortunately, NY State is not that simple. Here, sales tax is collected based on the persons zip code as there are many different rates within the state. The annoying factor is a small price to pay for doing business here. It gets easier & less intimidating as time goes by. Now, if only the sales tax due date was in line with the annual taxes - usually I'm scrambling at the last minute because I totally forget about it until about February.

    4 years ago

  • BethanyOgle

    BethanyOgle says:

    I'm really glad you wrote this article. When Etsy introduced the sales tax by zip code I thought I was doing something wrong. I didn't realize that some states charge the buyers tax rate. I have also shipped gifts out of state, and then later found out the buyer was local. I'd like to know the answer to Birdie1's question too.

    4 years ago

  • abelabodycare

    abelabodycare says:

    Helpful info. Thanks!

    4 years ago

  • patchesnthings

    patchesnthings says:

    Thank you so much for the information.

    4 years ago

  • DalkullanJewelry

    DalkullanJewelry says:

    Thanks for the help in dealing with collecting sales tax!

    4 years ago

  • MarKhed

    MarKhed says:

    taxes suck, but this makes them suck a little less. Thanks!

    4 years ago

  • ohbabydotcom

    ohbabydotcom says:

    Great tips!

    4 years ago

  • 8thStreetSoap

    8thStreetSoap says:

    Gah! Don't bother looking for a DC tax guide on Outright -- they don't include one. Disappointed.

    4 years ago

  • LuvinEveryMinute

    LuvinEveryMinute says:

    la la la la la (with my fingers in my ears) Smile. Thanks for the information.

    4 years ago

  • SimpleJoysPaperie

    SimpleJoysPaperie says:

    Thanks for the tax tips!

    4 years ago

  • HeyDiddleBaby

    HeyDiddleBaby says:

    Very helpful, thank you for the post! (and etsy tool)

    4 years ago

  • BeatificBijoux

    BeatificBijoux says:

    I always appreciate tax information. Reporting taxes is the most confusing aspect of the whole business to me.

    4 years ago

  • paramountvintage

    paramountvintage says:

    "fork it over" haha, so funny. thanks for this article!!! it is more than helpful!!!

    4 years ago

  • Marvidrio

    Marvidrio says:

    Thanks for posting this!! I can now let out a sigh of relief:)

    4 years ago

  • Asianexpressions

    Asianexpressions says:

    Thank you!

    4 years ago

  • dayslonggone

    dayslonggone says:

    Thanks for this information!

    4 years ago

  • Prittyfy

    Prittyfy says:

    Informative. Thanks a bunch.

    4 years ago

  • happymaxdesigns

    happymaxdesigns says:

    Thank you!!!

    4 years ago

  • CositasSeriasVintage
  • cjrosejewelry

    cjrosejewelry says:

    I can always use helpful tips with taxes! Thanks!

    4 years ago

  • blueskyclouds

    blueskyclouds says:

    Excellent!

    4 years ago

  • engelpottery

    engelpottery says:

    This has been very confusing for me. Thank you for the help!

    4 years ago

  • dessertfirstdesigns

    dessertfirstdesigns says:

    thanks for the info!

    4 years ago

  • livelovemaria

    livelovemaria says:

    The link "states that require sales tax" leads to an overview on the outright website, but from there when clicking on the "Wisconsin" link it leads to the Illinois link. I looked a bit at the address path and figured out it should link to this address: http://education.outright.com/wisconsin/wisconsin-business-taxes-and-license-permit-requirements/

    4 years ago

  • oguerrero

    oguerrero says:

    Thanks for the tip :)

    4 years ago

  • lauraprill

    lauraprill says:

    thanks for this post :)

    4 years ago

  • weebit

    weebit says:

    oh goodness, this is awesome! Thanks for providing this often overwhelming information in such an understandable format.

    4 years ago

  • EverybodyElse

    EverybodyElse says:

    Helpful stuff

    4 years ago

  • ThreeBirdsJewelry

    ThreeBirdsJewelry says:

    I was just starting to dread tax season since this is my first year selling...thanks for the helpful article!

    4 years ago

  • nancynelsonjewelry

    nancynelsonjewelry says:

    thanks for the tips:)

    4 years ago

  • blueridgewoodworking

    blueridgewoodworking says:

    thank you...I hope I don't get "killed"

    4 years ago

  • LittleMunchkinShop

    LittleMunchkinShop says:

    Lots of great info and tips!

    4 years ago

  • doveandflower

    doveandflower says:

    Very helpful, will definitely file this away till tax time. Thank you;-)

    4 years ago

  • byrachelrose

    byrachelrose says:

    Thank you so much for the advice. My only question is how can I set 2 rates for my state? I sell clothing and in my jurisdiction items $110 or less are exempt from city tax so I only have to charge state tax. I have some items over $110 and some under...what can I do?

    4 years ago

  • TheLittleRagamuffin

    TheLittleRagamuffin says:

    It is unfortunate that as of now NY State sellers can't set up the correct tax rates on Etsy as our tax rates vary by county and not zip code (many zip codes have more than one county within them). So the new sales tax setting based on zip codes won't work for us :( Etsy seller GoTo has some great info about NY Sales Tax posted on her blog: http://www.gotogreatpanes.com/blog/2008/01/17/new-york-sales-tax/ It's incredibly helpful!

    4 years ago

  • ballandchain

    ballandchain says:

    Yes, NY state taxes are by reporting code, can we please get this option? As we cannot use the zip code method. Pretty please? :)

    4 years ago

  • DevineCollectible

    DevineCollectible says:

    Yes, need to pay your tax! Peace out, DevineCollectible

    4 years ago

  • backbaybeads

    backbaybeads says:

    Great read and super helpful...Thank You!!!!

    4 years ago

  • jaipuronline

    jaipuronline says:

    I can always use helpful tips Thank's...

    4 years ago

  • tiemee

    tiemee says:

    Thank you for the reminder--I opt to do mine monthly because it is so fun!

    4 years ago

  • NaturallyARKtistic

    NaturallyARKtistic says:

    Thanks for the information! Very helpful!

    4 years ago

  • NaturallyARKtistic

    NaturallyARKtistic says:

    Thank you for the information! Very helpful!

    4 years ago

  • BellaPuzzlesToo

    BellaPuzzlesToo says:

    So glad I live in Oregon. :)

    4 years ago

  • redemptionart

    redemptionart says:

    Thank you...this helps

    4 years ago

  • Barbiola

    Barbiola says:

    Your insight into the actual business of running a shop is truly appreciated. Any further blogs on the nitty-gritty, nuts-and-bolts of financial and regulatory aspects of enterprise operation are more than welcomed!

    4 years ago

  • reiddamnit

    reiddamnit says:

    thanks for the information and links - so helpful!

    4 years ago

  • bumblebooHandmades

    bumblebooHandmades says:

    Thanks for the information! :)

    4 years ago

  • bumblebooHandmades

    bumblebooHandmades says:

    Thanks so much for the info!!

    4 years ago

  • ikabags

    ikabags says:

    Merci :)

    4 years ago

  • outwardbound

    outwardbound says:

    I have my shop set to collect sales for Georgia, but it never shows that it does.

    4 years ago

  • EponaJewels

    EponaJewels says:

    Thank you for the information!

    4 years ago

  • SimplyMaco

    SimplyMaco says:

    But no options to mark which items are taxable? In Pennsylvania, clothing and food are not taxable, but accessories are.

    4 years ago

  • Carolineart

    Carolineart says:

    Very useful. Thanks!

    4 years ago

  • brookeelissa

    brookeelissa says:

    Ah, taxes! My least favorite part of being an "artist". ha, ha! Thank you so much for the sales tax function! This came out the week I set up shop. Good timing! Now, to get to the bookkeeping . . . If only you had a function for that!

    4 years ago

  • e5jewel

    e5jewel says:

    I just made a purchase from an Etsy shop in my local area (GA) and was charged sales tax. I was wondering about that-thank you for clearing that up!

    4 years ago

  • BabyJoeyStore

    BabyJoeyStore says:

    I was just about to feel overwhelmed in figuring this out. Thank you so much.

    4 years ago

  • LilahBelleVintage
  • Maddivadesigns

    Maddivadesigns says:

    Lots of great info. Thank you!

    4 years ago

  • Flipabill

    Flipabill says:

    Thanks for the info, but speaking as a California seller, there are way too many zipcodes for us to enter on the etsy site. I do wish you had a solution for this. For now, customers will have to accept my higher sales tax rate or tell me where they want their purchase mailed to in advance, so I can set up a special zipcode connected sales tax for them.

    4 years ago

  • RetroFirsts

    RetroFirsts says:

    This came at the perfect time. Thanks!

    4 years ago

  • pinkhouse

    pinkhouse says:

    Thank you!

    4 years ago

  • CraftedRoots

    CraftedRoots says:

    Thanks so much!! A lot of good information all in one place! Who could ask for more? :)

    4 years ago

  • BooksInspireMe

    BooksInspireMe says:

    Thanks!

    4 years ago

  • InkspotWorkshop

    InkspotWorkshop says:

    But PayPal is already setup to charge my customers sales tax, why do I need to have Etsy collect it too?

    4 years ago

  • allisonwilsonphotos

    allisonwilsonphotos says:

    Thank you for the information!

    4 years ago

  • wass1

    wass1 says:

    TY for the info i didn't even know I had to charge sales tax!! I agree with Filabill living in California we have way to many zip codes.This is going to take some work. That is if I ever sale anything. It's only been a week though.

    4 years ago

  • Lilywinkel

    Lilywinkel says:

    I think I will move to Montana, Delaware, Oregon... I think I finally have figured out how Colorado tax works, now I just need to do some zip code research to find out what zips are in the same tax district as me. Thanks for this article!

    4 years ago

  • Katexpressions

    Katexpressions says:

    Thanks so much for providing information on each state and what they require. I really appreciate help on the business/legal side of things...

    4 years ago

  • foxpots

    foxpots says:

    Sellers should note that tax jurisdictions don't always line up with zip codes. For example, I live in a tax jurisdiction with a 6.5% sales tax rate. However, my location shares a zip code with another tax jurisdiction that has a 7% tax rate. I find it extremely irksome that most online retailers just go ahead and collect the higher rate. I end up paying more than I should, and my tax jurisdiction doesn't get their fair share of tax revenue. This is a very complex matter. Sellers need to be aware of their local tax laws and be careful not to oversimplify.

    4 years ago

  • PetrinaCaseStudio

    PetrinaCaseStudio says:

    Have been charging tax since I opened my shop. The biggest problem with New York State tax is they say I must add tax to shipping. I cannot get the Etsy button to do that. Etsy does not seem to charge tax on shipping. Tax form: TSB-M-92 (2)S

    4 years ago

  • ASHWoodshops

    ASHWoodshops says:

    Thanks for the information. It was very helpful. Blessings,

    4 years ago

  • VintageHaven

    VintageHaven says:

    I would like to see Etsy find a way to tax only the items I sell that are taxable (maybe check a box during the listing). I live in Mass and it is not an all or nothing situation. Some vintage items are taxed while others are not. No easy fix besides send a separate paypal invoice for taxes only for items that should be taxed when Mass buyers don't convo first. Any ideas from other sellers-convo me.

    4 years ago

  • WhisperingOak

    WhisperingOak says:

    Thank you Etsy for providing the information and great tips

    4 years ago

  • jezebelle88

    jezebelle88 says:

    I'm sooo lost. I don't understand why I need to add tax? Can I just sell an item for $10 bucks and that be it? Like a yard sale?? Someone help! :[

    4 years ago

  • HappyFaceArt

    HappyFaceArt says:

    It is good to know there is help when I need it. Thanks for. The information.

    4 years ago

  • LumiereEtAlouette

    LumiereEtAlouette says:

    I looked at that website that's supposed to tell us what the tax rates are, and it's organized all wrong. I clicked TN and it showed me Texas. Then I tried to look at the permits and business license requirements, and instead of TN, it showed me Virginia. Not to mention, I don't understand how I am supposed to know which places I should be collecting tax from, or what I'm supposed to do with it after it's been collected. If anyone wants to help me out, I would really appreciate it! I'm so lost! :(

    4 years ago

  • northernskyquilts

    northernskyquilts says:

    Thank you Etsy for walking us through the sales tax issue. I really appreciate all you do for us shop owners!!!!

    4 years ago

  • Lutrick

    Lutrick says:

    Needs to be fixed to help with NY and WA where it is charged weirdly. I'm in Wa and I have to charge where it is going, not where I am. Very annoying. If my website shopping cart can do this, why not Etsy?

    4 years ago

  • FreshRetroGallery

    FreshRetroGallery says:

    I like that you can download a csv file of "sold orders" with etsy, to help keep track of things, too.

    4 years ago

  • EfiaFair

    EfiaFair says:

    Thank you, thank you, thank you for this article. I feel so alone when trying to figure out complicated CA taxes ... great resource here. :)

    4 years ago

  • Angelof2

    Angelof2 says:

    We reside in state with over 27+ ever changing tax rates.

    4 years ago

  • gracefuldesignscards

    gracefuldesignscards says:

    Thanks for the reminder--I just went to set my sales tax for Virginia!

    4 years ago

  • nenafashions

    nenafashions says:

    Thanks for the info. Gotta keep Uncle Sam happy.

    4 years ago

  • TheScrapBasket

    TheScrapBasket says:

    Thanks for the info. It is very overwhelming, but all good stuff to know. Thanks for doing all the leg work!

    4 years ago

  • anhartetsy

    anhartetsy says:

    Sales Tax... its EVERYWHERE. I'm glad I now have a better understanding of how to collection and from whom. Thank you

    4 years ago

  • LillyPinkPaperie

    LillyPinkPaperie says:

    http://www.ehow.com/how_6591157_charge-tax-internet-sales.html http://www.allbusiness.com/sales/internet-e-commerce/2652-1.html Check out these articles. I appreciate Etsy's info on this... However, I think it's important to gather information from other resources as well. These web pages also have good links within.

    4 years ago

  • evdesign

    evdesign says:

    Thank you. That is some helpful advise.

    4 years ago

  • EnglishTraditions

    EnglishTraditions says:

    I've never seen Sales Tax explained so well in such simple terms - I teach business and our local CPAs refuse to comment on sales tax issues on the internet. GREAT article!

    4 years ago

  • mbracestudios

    mbracestudios says:

    You have saved me!

    4 years ago

  • penyadesignshop2

    penyadesignshop2 says:

    thank you for this!! because i was doing some crazy research and this article just made me feel like i was on the right track!!

    4 years ago

  • NotYoMommasHandbag

    NotYoMommasHandbag says:

    Very clear! now I understand....thank you....smiles

    4 years ago

  • jaipuronline

    jaipuronline says:

    I love this article....

    4 years ago

  • GemdropsoftheFalls

    GemdropsoftheFalls says:

    Tricky, but ya gotta do it. Thanks for the info.

    4 years ago

  • artzygirl7

    artzygirl7 says:

    Thanks so much. I live in New York and just found out about Amazon. No wonder I haven't heard back from them on their affiliate program. Much needed information. Thank you. I will get set up with Outright, as soon as I get my Etsy shop up and running. Joanne Merrick Johnson www.sculpturedlife.com

    4 years ago

  • zrhardy

    zrhardy says:

    So do you only have to collect taxes if you have a real shop outside of Etsy or if Etsy is your sole source of income? I am still a little confused and worried that I am doing the wrong thing . . .

    4 years ago

  • NenasArtandDesigns

    NenasArtandDesigns says:

    Thanks, I've added this one to my "favorites".

    4 years ago

  • blufaerie

    blufaerie says:

    Thank goodness... This was a very helpful article!

    4 years ago

  • Seaweaver

    Seaweaver says:

    Thank you so much for this article!

    4 years ago

  • VeCeramics

    VeCeramics says:

    Thanks!

    4 years ago

  • texasnan

    texasnan says:

    Very helpful information. Thanks so much!

    4 years ago

  • JKLEncaustics

    JKLEncaustics says:

    good to know

    4 years ago

  • AlphaDogPhoto

    AlphaDogPhoto says:

    Thanks for this article. I beieve I have been doing everything correctly, but am off to read more to make sure. "If you take a walk I'll tax your feet; if you try to sit I'll tax your seat..." It's that time of the year.

    4 years ago

  • dazzleme12

    dazzleme12 says:

    Very helpful. I signed up for Outright.. Etsy makes it easy to set up on line selling.

    4 years ago

  • EssenceofTranquility

    EssenceofTranquility says:

    Thank you for your Tips love and light Caz x

    4 years ago

  • blankiesandtreasures

    blankiesandtreasures says:

    thanks for the info...just now setting up my etsy account&need all the help I can get!

    4 years ago

  • Gabsie

    Gabsie says:

    I'm wondering how these things are in Europe, does anyone know?

    4 years ago

  • lettersandthread

    lettersandthread says:

    It says in the article that if you have a nexus, a physical store, then you need to charge sales tax when someone from your state orders from you. If I do NOT have a physical store, just an etsy site, am I required to charge sales tax or not? And if I do need to charge it, do I charge everyone or just those from my state? This article leads me to believe I don't need to charge any tax at all...but that sounds too easy. Can anyone clear this up? Thank you.

    4 years ago

  • SterlingEchoes

    SterlingEchoes says:

    great article full of much needed information - thank you so much!! I have been wondering how it will affect me living in Oregon and this was fantastic.

    4 years ago

  • OliveandOwl

    OliveandOwl says:

    Amazing that something so simple is actually so complicated. If only we could just barter!

    4 years ago

  • whispersofnature

    whispersofnature says:

    There are times when the business aspects of creating can put a bit of a dark cloud on my energy. Etsy's support, such as this posting, are a breath of fresh air. With much appreciation ~ Whispers of Nature

    4 years ago

  • chini

    chini says:

    Thanks for the GREAT support! ~Chini

    4 years ago

  • puppydog35

    puppydog35 says:

    Thanks I needed that infomation

    4 years ago

  • EmelineW

    EmelineW says:

    This was exactly what I needed to read! Thanks! This whole shop thing is a bit overwhelming...

    4 years ago

  • JanieMarieDesigns

    JanieMarieDesigns says:

    This is great to know since I have not sold anything yet I can start fresh.

    4 years ago

  • PrairiePrimitives

    PrairiePrimitives says:

    I've been selling my stuff for awhile and though I'm not an account nor attorney, I think I have a pretty good grasp of "tax stuff," both sales tax and income tax. I'm going to start at the bottom and work my way up to see if I can answer any questions. 99% of this comment is about sales tax, however there is a bit about federal income tax at the very bottom which applies to ALL U.S. businesses. (It looks like I got a little wordy because Etsy is telling me that I haven't typed anything yet, so I'm going to break this up into a couple of comments!) @lettersandthread, although the article used the word "nexus," the general idea is that (for states that have sales tax), you need to collect sales tax when you make a sale in a state where you have a physical presence. You live in your state, so you have a physical presence there so, if your state has a sales tax, you should be collecting it. If you go to the next state over (or across the country) to do a craft fair, you have a physical presence there for the duration of the craft fair and so you should be collecting sales tax on sales made at the craft fair. For sales where you are physically outside of your home state (such as an out-of-state craft fair), you would collect the tax based on the rate at the location where you are making the sale. Of course this also means you should have a seller's permit, tax license, or whatever it may be called for that location; most states offer temporary seller's permits to non-residents who only plan to sell in the state a few days each year. And you only collect sales tax for items shipped to a state where you have the authority to do so (i.e., where you hold a sales tax license, seller's permit, etc.). If one lives on or near a state border and does business on a regular basis in two (or more!) states, they should have sales tax permits in each state. In this case, you would collect sales tax on items you sell within each state (such as at craft fairs) as well as items which you sell online which are shipped to either (or any) of those states.

    4 years ago

  • PrairiePrimitives

    PrairiePrimitives says:

    @zrhardy, you should be collecting sales tax if you sell your handmade wares through any venue, whether that's online or at craft fairs or in a brick & mortar store. You'll need to have a seller's permit, sales tax license, or whatever your state may call it (they all have their own name for the document!); this is what entitles you to collect (and remit!) sales tax. @LumiereEtAlouette, see my above comments to see where and when you should be collecting sales tax. After it's collected, you remit it (turn it in) to the state where it was collected. If you do out-of-state craft fairs, as I mentioned above, you'll be turning in part of the tax to another state, so keep that in mind! I'm assuming that the Nashville you live in is Tennessee (there are Nashville's in other states too!). Here's more sales tax info specific to Tennessee: http://tn.gov/revenue/tntaxes/salesanduse.htm ... my experience (in Indiana and California) has been that the state will send you a sales tax return, however many states have done away with paper returns and are doing all of their sales tax collecting online. For small businesses that don't have a ton of sales, you will probably file your state sales tax annually. If you're a larger business (making hundreds of sales per month) or have a brick & mortar store, you may be required to file quarterly or even monthly. @jezebelle88, well, you can ... but you're not supposed to be doing it that way. As long as you're trying to make a profit (whether or not you do), you're considered a business ... and businesses have to collect sales tax. That's just the way it's done in the good ol' U.S. of A. @VintageHaven - SimplyMaco - RachelRose, does your state allow you to include sales tax in the selling price of the item? When I lived in Indiana (15+ years ago), that was forbidden however here in California, it seems to be acceptable. If you can include the sales tax on the items where you need to collect it, then just skip the Etsy sales tax thingy altogether! @wass1, I'm also in California and if we are supposed to be collecting sales tax based on zip code, I wasn't aware of it. So check with the BOE before you spend any time trying to set things up like that. Some states handle sales tax based on zip code, some by county or city (which is how CA seems to do it), and so on. @InkspotWorkshop, you don't. You shouldn't. That would be double taxation. As long as you're collecting sales tax one place or the other, that's all you need to do. Just be sure you're only collecting it for where you should be (states where you have a physical presence). @Flipabill, California sales tax isn't set up by zip code. It's by county (and occasionally city). Check the BOE web site for more info. A couple years ago, I blogged about setting up a small business in California; it's been a very popular article! Here's the link: http://prairieprimitivesfolkart.blogspot.com/2009/01/taxes-permits-licenses-for-new.html Now ... as for Federal Income Tax ... oh boy, that's a whole 'nother thing, and one that many people don't think about until sometime in April! However, as a business owner, you need to think about it prior to Dec. 31st because if you're showing a profit (especially a BIG profit), you may want to take steps to reduce that profit just a bit so you won't owe quite so much income tax to the feds. I got a little trapped by this situation back in 1994 when I had a VERRRRY good year (did a TON of wholesale that year). Early in December, I realized that I'd be showing a very healthy profit so I went out and bought a computer, printer, and software. Back in those days (the dark ages!), that cost me about $3,000 and even after writing all of that off as a business expense, I **still** had to pay Uncle Sam an additional $800, and another couple hundred dollars to the State. OUCH. Soooo ... today is 12/31, you've got another 12 to 14 hours to figure out if you're showing a profit that's going to be painful on April 15th. Happy New Year!

    4 years ago

  • krugsecologic

    krugsecologic says:

    I love my accountant - I don't understand any of it, so he handles it all :-) THANKFULLY !

    4 years ago

  • JKLEncaustics

    JKLEncaustics says:

    good to know!

    4 years ago

  • DEBBIEMCOLUMBIA

    DEBBIEMCOLUMBIA says:

    great info!!

    4 years ago

  • CountingSunsets

    CountingSunsets says:

    ahh, thanks for these links, i am new to selling so needed the info.!

    4 years ago

  • gaelgallery

    gaelgallery says:

    ok so how do i find out if my state wants me to only collect tax on buyers from my state only or all buyers?

    4 years ago

  • ArtCycling

    ArtCycling says:

    @gaelgallery I just read in an article that you collect sales tax on items that are shipped to a state where you live. My question is, if I'm in California and my friend who is going to sell things with me is in Indiana. All the money transactions are going through me...so does that mean I have to file her state sales taxes as well?

    4 years ago

  • TheSnapDragonsLair

    TheSnapDragonsLair says:

    Learning more every day. Thanks!

    4 years ago

  • BluKatDesign

    BluKatDesign says:

    How do I find all of the different tax rates; I can't even find a list of tall of the zip codes in WA state?

    4 years ago

  • BluKatDesign

    BluKatDesign says:

    How do I find all of the different tax rates; I can't even find a list of tall of the zip codes in WA state?

    4 years ago

  • PeterDurand

    PeterDurand says:

    I live in Washington state and pay my taxes online and have called the Department of Revenue a couple of times with questions. I was pleasantly surprised at how friendly and helpful they were. Here is a link to the information you need, http://dor.wa.gov/content/findtaxesandrates/salesandusetaxrates/lookupataxrate/ , Don't be shy about giving them a call.

    4 years ago

  • shopmiko

    shopmiko says:

    thank you for the helpful info!

    4 years ago

  • NicolettesJewelry

    NicolettesJewelry says:

    HI! is there somewhere in my shop stats or wherever that has a running total of the sales tax I have collected in 2011? As opposed to adding it up manually, one sale at a time... Thanks!

    3 years ago

  • idoloveyou

    idoloveyou says:

    Thanks for the info! You made especially easy because I'm based in Caliornia! I didn't realize you have to enter the rate for every state- geeeesh :/

    3 years ago

  • skcumberland77

    skcumberland77 says:

    So wait, if I am just making jewelry from my home (nothing big, everything is under $30) with no distinct office, store, or employee (nexus) am I required to file taxes as a business or just add it as extra income on my regular taxes? I will only have about 20 pieces total in my Etsy account.

    3 years ago

  • skcumberland77

    skcumberland77 says:

    Yeah I'm at a loss on dealing with Sales tax in WA... I wish Etsy's system would automatically assess the tax based on buyer. Now someone mentioned PayPal automatically adds the tax? Is that correct??

    3 years ago

  • skcumberland77

    skcumberland77 says:

    I am even more confused regarding license etc in WA...arrggghhh... I definitely make under 12k a year at this so do I have to have a license & collect taxes or what??

    3 years ago

  • AcidTongued

    AcidTongued from AcidTongued says:

    So to clarify, as long as I don't have a brick and mortar store or an employee I do not need to collect sales tax? I am in NJ if that helps. Thank you.

    3 years ago

  • AuriesDesigns

    AuriesDesigns from AuriesDesigns says:

    Just the info I was looking for. Thank you

    3 years ago

  • MagellansBelly

    Carol from MagellansBellyStudio says:

    Thanks for this post!

    3 years ago

  • eclecticatd8

    eclecticatd8 from WhimsicalEncounters says:

    Why would anyone collect sales tax on personal vintage items????? The person that bought them in the first place paid the tax a long time ago - I don't have a physical business anyplace - and I don't want one - I'm just selling out of my closet and my bureau - I'm really confused abou that - I thought 'store' was just an etsy terminology for one's selling site - tres confusion - help!!!

    3 years ago

  • Segzylexi

    Alexi from FeatherAffair says:

    I dont understand why sales tax would only be charged to people buying within my state. I work out of Truckee, CA...so if i ship to New York why wouldn't I charge them any sales tax?? Shouldn't they be charged my California sales tax since they are buying from California? I'm so confused!!

    2 years ago

  • solarpaneljewelry

    Jonathan Hunt from solarpaneljewelry says:

    The link to Outright for finding my state tax stuff no longer works. Is there an alternative place to look? Thanks!

    2 years ago

  • 2craftygals

    Missy R from BroadwayFashion says:

    Wouldn't it be easier to just not add sales tax? Sorry, confused here.

    2 years ago

  • Silver15211

    Anna Alentyev from SilverBoutiqueOnEtsy says:

    The links DO NOT WORK

    2 years ago

  • conniculp

    conni culp from Creationsbyconni says:

    I am so confused with all of this??? I am about ready to shut down my shop.. If I am not a business do I have to collect sales tax.. One mentioned above that if you do an art fair or whatever that you collect tax from where the fair is. I just went to an art fair and was not charged tax on anything I purchased.If I understand correctly she makes it sound like you only collect tax from ppl from where you live? is that for a business or someone like me just trying to sell stuff? Etsy is no help at all.I have sent 4 messages to them with no response at all. I was really excited about opening my shop and it has been a nightmare of confusing ever since I did it.. The search ads and all the other crap that follows. They make it sound so easy,list your stuff, open your shop and sell...not so simple!!!

    2 years ago

  • etherealtiedyes

    Sean Hendricks from etherealtiedyes says:

    How about adding a "set sales tax by county option". There are over 1000 zip codes in NC. They do not all have the same tax rate.

    2 years ago

  • megan4847

    Megan Clancy from KeaneInspirations says:

    FLORIDA SELLERS: Found this on the Florida Dept of revenue website, it was very helpful in determining how to remit taxes since Florida requires you to pay the discretionary sales tax to the county on top of the state sales tax. http://dor.myflorida.com/dor/training/nbo_new/safari3/index.html?dhtmlActivation=inplace

    1 year ago

  • My Homepage says:

    ... [Trackback] [...] Informations on that Topic: blog.etsy.com/en/2010/tax-tips-everything-you-need-to-know-about-sales-tax/ [...]

    1 year ago

  • LuckyHamster

    Xenia Po from LuckyHamster says:

    Thank you! The outright link is not working unfortunately.

    346 days ago

  • Google says:

    Google Please visit the internet sites we stick to, like this one, because it represents our picks through the web.

    343 days ago

  • Google says:

    Google We came across a cool site which you may possibly appreciate. Take a appear in case you want.

    162 days ago

  • http://www.gp.se/fescvea says:

    http://www.gp.se/fescvea [...]one of our visitors just lately advised the following website[...]

    153 days ago

  • http://www.menage-poly.com/service-menager-a-domicile.html says:

    http://www.menage-poly.com/service-menager-a-domicile.html [...]check below, are some completely unrelated web-sites to ours, nonetheless, they are most trustworthy sources that we use[...]

    152 days ago

  • this web page says:

    this web page [...]Sites of interest we've a link to[...]

    152 days ago

  • search engine says:

    search engine [...]although internet sites we backlink to beneath are considerably not related to ours, we really feel they are really worth a go as a result of, so have a look[...]

    151 days ago

  • global online franchise scam says:

    global online franchise scam [...]that may be the end of this post. Here you will find some web-sites that we assume you’ll value, just click the links over[...]

    150 days ago

  • http://www.menage-poly.com/femme-de-menage.html says:

    http://www.menage-poly.com/femme-de-menage.html [...]The details talked about inside the article are a number of the best available [...]

    150 days ago

  • legacyfoodstorage web source says:

    legacyfoodstorage web source [...]that will be the end of this article. Here you’ll find some web pages that we consider you’ll value, just click the hyperlinks over[...]

    150 days ago

  • herbal metabolism booster safe says:

    herbal metabolism booster safe [...]The information mentioned in the write-up are a few of the top out there [...]

    149 days ago

  • http://www.menage-poly.com/nettoyage-menage-montreal.html says:

    http://www.menage-poly.com/nettoyage-menage-montreal.html [...]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless truly really worth taking a search, whoa did one learn about Mid East has got additional problerms too [...]

    149 days ago

  • good vitamins for hair says:

    good vitamins for hair [...]The information and facts talked about within the write-up are a few of the very best out there [...]

    149 days ago

  • Types of Flowers for Valentines Day says:

    Types of Flowers for Valentines Day [...]the time to study or visit the content or web sites we've linked to beneath the[...]

    148 days ago

  • Google says:

    Google Every the moment inside a even though we decide on blogs that we read. Listed below are the most current web sites that we select.

    147 days ago

  • victoria electricians says:

    victoria electricians [...]Here are a few of the web pages we recommend for our visitors[...]

    147 days ago

  • lesbian sex says:

    lesbian sex [...]that would be the finish of this article. Here you will come across some web pages that we assume you will appreciate, just click the links over[...]

    147 days ago

  • computer support croydon says:

    computer support croydon [...]Sites of interest we've a link to[...]

    146 days ago

  • best anabolic supplement says:

    best anabolic supplement [...]Wonderful story, reckoned we could combine a few unrelated data, nonetheless truly worth taking a look, whoa did one particular master about Mid East has got extra problerms at the same time [...]

    144 days ago

  • roofers in dallas tx says:

    roofers in dallas tx [...]the time to read or check out the material or websites we have linked to beneath the[...]

    143 days ago

  • sheds says:

    sheds [...]just beneath, are many completely not associated sites to ours, however, they are certainly worth going over[...]

    143 days ago

  • www.menage-poly.com says:

    www.menage-poly.com [...]although sites we backlink to beneath are considerably not related to ours, we really feel they may be actually worth a go by means of, so have a look[...]

    143 days ago

  • homeschool says:

    homeschool [...]always a huge fan of linking to bloggers that I love but don’t get a lot of link adore from[...]

    142 days ago

  • paintless dent repair training says:

    paintless dent repair training [...]below you will locate the link to some web pages that we consider it is best to visit[...]

    141 days ago

  • egg surprise says:

    egg surprise [...]that will be the end of this report. Here you will discover some websites that we think you will enjoy, just click the hyperlinks over[...]

    140 days ago

  • payday loans says:

    payday loans [...]Sites of interest we have a link to[...]

    140 days ago

  • Online Marketing says:

    Online Marketing [...]always a large fan of linking to bloggers that I like but really don't get a lot of link like from[...]

    136 days ago

  • Wealth Building says:

    Wealth Building [...]The information talked about within the report are a number of the very best out there [...]

    136 days ago

  • Best Marketer says:

    Best Marketer [...]Here are a few of the web sites we recommend for our visitors[...]

    136 days ago

  • Police Classes says:

    Police Classes [...]The data talked about inside the article are a few of the ideal obtainable [...]

    134 days ago

  • norton 360 says:

    norton 360 [...]here are some hyperlinks to web-sites that we link to because we feel they are worth visiting[...]

    134 days ago

  • technician says:

    technician [...]always a significant fan of linking to bloggers that I enjoy but do not get quite a bit of link like from[...]

    134 days ago

  • car lease says:

    car lease [...]that will be the end of this write-up. Right here you will discover some internet sites that we believe you’ll appreciate, just click the links over[...]

    133 days ago

  • ebay businesses for sale says:

    ebay businesses for sale [...]Wonderful story, reckoned we could combine a number of unrelated data, nevertheless really really worth taking a search, whoa did one particular study about Mid East has got far more problerms too [...]

    131 days ago

  • Adam and Eve Coupon says:

    Adam and Eve Coupon [...]very few web-sites that come about to become comprehensive beneath, from our point of view are undoubtedly properly worth checking out[...]

    128 days ago

  • Black Flag Wing Chun says:

    Black Flag Wing Chun [...]one of our visitors not too long ago proposed the following website[...]

    128 days ago

  • small business insurance says:

    small business insurance [...]very few web-sites that happen to become comprehensive below, from our point of view are undoubtedly nicely really worth checking out[...]

    127 days ago

  • slackline says:

    slackline [...]usually posts some quite fascinating stuff like this. If you are new to this site[...]

    127 days ago

  • paintless dent repair training says:

    paintless dent repair training [...]Here are a number of the web sites we recommend for our visitors[...]

    126 days ago

  • paydayloans says:

    paydayloans [...]Every the moment in a whilst we decide on blogs that we study. Listed beneath are the most current web-sites that we pick out [...]

    125 days ago

  • http://www.menage-poly.com/entretien-menager-nettoyage.html says:

    http://www.menage-poly.com/entretien-menager-nettoyage.html [...]just beneath, are a lot of absolutely not related web sites to ours, on the other hand, they are certainly worth going over[...]

    124 days ago

  • cheap vacations says:

    cheap vacations [...]just beneath, are various totally not connected web sites to ours, nonetheless, they may be certainly worth going over[...]

    123 days ago

  • Donald Kernan Jr says:

    Donald Kernan Jr [...]usually posts some quite intriguing stuff like this. If you are new to this site[...]

    122 days ago

  • Donald Kernan Jr says:

    Donald Kernan Jr [...]here are some links to web pages that we link to mainly because we consider they're worth visiting[...]

    121 days ago

  • Donald Alan Kernan Jr says:

    Donald Alan Kernan Jr [...]Wonderful story, reckoned we could combine several unrelated data, nevertheless actually worth taking a search, whoa did one discover about Mid East has got much more problerms too [...]

    121 days ago

  • Donald Alan Kernan Jr says:

    Donald Alan Kernan Jr [...]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless definitely worth taking a appear, whoa did one study about Mid East has got far more problerms at the same time [...]

    121 days ago

  • Donald Alan Kernan Jr says:

    Donald Alan Kernan Jr [...]that could be the end of this write-up. Here you will find some web pages that we consider you will value, just click the links over[...]

    120 days ago

  • http://www.menage-poly.com/femme-menage.html says:

    http://www.menage-poly.com/femme-menage.html [...]check below, are some totally unrelated sites to ours, even so, they're most trustworthy sources that we use[...]

    120 days ago

  • Laboratoire scientifique says:

    Laboratoire scientifique [...]please pay a visit to the sites we adhere to, including this one, because it represents our picks from the web[...]

    120 days ago

  • Youtube To Mp3 says:

    Youtube To Mp3 [...]the time to study or pay a visit to the subject material or web-sites we've linked to below the[...]

    119 days ago

  • Persian Silk Rug says:

    Persian Silk Rug [...]usually posts some really fascinating stuff like this. If you’re new to this site[...]

    119 days ago

  • yummy kiel says:

    yummy kiel [...]Wonderful story, reckoned we could combine a couple of unrelated data, nevertheless seriously really worth taking a search, whoa did a single study about Mid East has got additional problerms as well [...]

    119 days ago

  • http://www.menage-poly.com/service-entretien-menager.html says:

    http://www.menage-poly.com/service-entretien-menager.html [...]please stop by the internet sites we comply with, like this one particular, as it represents our picks from the web[...]

    119 days ago

  • http://www.menage-poly.com/service-de-menage-residentiel.html says:

    http://www.menage-poly.com/service-de-menage-residentiel.html [...]although internet websites we backlink to below are considerably not related to ours, we feel they are in fact really worth a go as a result of, so possess a look[...]

    118 days ago

  • We offer the best Appliance Repair Service in Toronto says:

    We offer the best Appliance Repair Service in Toronto [...]check beneath, are some totally unrelated internet websites to ours, nevertheless, they are most trustworthy sources that we use[...]

    115 days ago

  • dianabol says:

    dianabol [...]one of our visitors recently advised the following website[...]

    115 days ago

  • Frosting says:

    Frosting [...]check beneath, are some absolutely unrelated websites to ours, nonetheless, they're most trustworthy sources that we use[...]

    115 days ago

  • network marketing opportunities says:

    network marketing opportunities [...]one of our guests a short while ago proposed the following website[...]

    114 days ago

  • make your own business says:

    make your own business [...]Sites of interest we've a link to[...]

    113 days ago

  • ideas for online business says:

    ideas for online business [...]Sites of interest we've a link to[...]

    113 days ago

  • surfboard for hire disneyland says:

    surfboard for hire disneyland [...]that would be the end of this write-up. Here you’ll obtain some websites that we consider you’ll enjoy, just click the hyperlinks over[...]

    112 days ago

  • make your own business says:

    make your own business [...]we like to honor several other world wide web web sites around the net, even when they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[...]

    112 days ago

  • wealth building strategies says:

    wealth building strategies [...]usually posts some quite interesting stuff like this. If you’re new to this site[...]

    111 days ago

  • internet network marketing says:

    internet network marketing [...]Sites of interest we have a link to[...]

    111 days ago

  • successful online businesses says:

    successful online businesses [...]Wonderful story, reckoned we could combine some unrelated data, nonetheless really worth taking a search, whoa did one find out about Mid East has got extra problerms too [...]

    111 days ago

  • Skin Rejuvenation Device says:

    Skin Rejuvenation Device [...]although web sites we backlink to beneath are considerably not related to ours, we really feel they're actually really worth a go by, so possess a look[...]

    110 days ago

  • apartment listings says:

    apartment listings [...]usually posts some very exciting stuff like this. If you’re new to this site[...]

    110 days ago

  • http://www.dailymotion.com/video/x2jis2i_caduta-capelli-rimedi-come-rinforzare-i-capelli-integratori-per-capell-rinforzare-i-capelli_school says:

    http://www.dailymotion.com/video/x2jis2i_caduta-capelli-rimedi-come-rinforzare-i-capelli-integratori-per-capell-rinforzare-i-capelli_school [...]one of our visitors lately recommended the following website[...]

    108 days ago

  • hay day ios cheats says:

    hay day ios cheats [...]please stop by the web-sites we comply with, like this one particular, as it represents our picks through the web[...]

    108 days ago

  • paintless dent repair training says:

    paintless dent repair training [...]Wonderful story, reckoned we could combine a handful of unrelated data, nonetheless seriously really worth taking a search, whoa did 1 find out about Mid East has got additional problerms too [...]

    107 days ago

  • ihealth edge review says:

    ihealth edge review [...]one of our visitors lately encouraged the following website[...]

    105 days ago

  • education knowledge quotes says:

    education knowledge quotes [...]check beneath, are some absolutely unrelated web sites to ours, even so, they are most trustworthy sources that we use[...]

    100 days ago

  • home improvement tax deduction says:

    home improvement tax deduction [...]always a big fan of linking to bloggers that I love but do not get a whole lot of link enjoy from[...]

    99 days ago

  • read more says:

    read more [...]very couple of internet sites that come about to become comprehensive below, from our point of view are undoubtedly properly worth checking out[...]

    98 days ago

  • Legacy Food Storage website says:

    Legacy Food Storage website [...]below you’ll locate the link to some internet sites that we consider you ought to visit[...]

    98 days ago

  • Work from home says:

    Work from home [...]Here is a good Blog You might Locate Interesting that we Encourage You[...]

    93 days ago

  • web design denver says:

    web design denver [...]please stop by the sites we stick to, which includes this one particular, as it represents our picks from the web[...]

    92 days ago

  • work from home jobs 2015 says:

    work from home jobs 2015 [...]Here is a great Blog You may Come across Interesting that we Encourage You[...]

    88 days ago

  • makeme says:

    makeme [...]Every as soon as inside a although we pick out blogs that we read. Listed beneath are the newest websites that we decide on [...]

    66 days ago