Etsy To Collect Sales Tax For 20 States And Washington D.C. By July 1

Etsy updated the list of states for which it will collect sales tax for its sellers.

“Some states in the United States have introduced laws that affect online marketplaces such as Etsy. As a result, we’ve made some changes to how sales tax is handled on Etsy. We want you to know that we have your back, and we’re hoping to make this transition as seamless as possible.”

Etsy Blog Post

On July 1, Etsy will collect sales tax on sales shipping to residents in:

  • Alabama
  • Arkansas
  • Kentucky
  • New Mexico
  • Rhode Island
  • Virginia
  • West Virginia
  • Wyoming

Currently Etsy collects sales tax already for shipments going to addresses in:

  • Washington
  • Pennsylvania
  • Oklahoma
  • Minnesota
  • Iowa
  • Connecticut
  • South Carolina
  • South Dakota
  • New Jersey
  • District of Columbia
  • New York (effective June 1)
  • Idaho (effective June 1)
  • Nebraska (effective June 1)

No Action Required By Sellers

Etsy will handle the reporting, collection and remittance of the sales tax on applicable orders impacted by marketplace laws.

However, sellers may receive questions from buyers on why sales tax is being added to their orders and should be aware of the states for which Etsy is and will collect sales tax.

READ MORE: State Sales Tax Guide


We love to hear your thoughts about sales tax and how it is impacting your business. Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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