Etsy Updates List of States for Which It Will Collect Sales Tax

Since the decision by The US Supreme Court in South Dakota v. Wayfair, states have been busy revising laws trying to take advantage of the ruling.

This week Etsy updated the list of states for which the marketplace is required to collect sales tax on behalf of sellers. The reason Etsy has to collect the tax is that these states passed so called Marketplace Facilitator Sales Tax Laws.

This laws make marketplace responsible for the collection of the sales tax on purchases made by buyers on the platform.

However, sellers can still be individually responsible for collecting sales tax in other states. Please see our State Sales Tax Guide for more information.

Etsy List of States and Effective Dates of Sales Tax Collection

State Date
Washington January 1, 2018
Pennsylvania April 1, 2018
Oklahoma August 1, 2018
Minnesota October 1, 2018
Iowa February 1, 2019
Connecticut February 1, 2019
South Carolina February 1, 2019
South Dakota March 1, 2019
New Jersey April 1, 2019
District of Columbia April 1, 2019
Alabama July 1, 2019


What are your thoughts on this sales tax mess the 2018 US Supreme Court ruling created? 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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