Free tool · No sign-in needed

US Sales Tax Guide

Pick the buyer's state; see the tax eBay collects from the buyer, its effect on your fee, and the tax you pay when buying on Amazon. The table covers 50 states and DC; exemption steps below.

What does tax do on one sale?

Pick the buyer's state and enter sale and supply price; the tax eBay collects, its effect on your fee and the tax you pay on Amazon appear instantly.

Buyer's state

Sale price

Supply price

I have an exemption certificate

eBay collects from the buyer: $2.46; 8.2% × $30.00
Effect on your fee: −$0.33; 13.6% × $2.46
Tax you pay on Amazon: −$1.31; 8.2% × $16.00
Saved with an exemption: $1.31; per sale

Calculate with these taxes in the Profit Calculator

State table

State rate + population-weighted average local rate = combined rate. Click a row to switch the calculation above to that state.

Sort:51 rows

State	State rate	Avg. local	Combined	eBay collects?
	4.0%	5.29%	9.29%	Yes
No state tax; some localities charge tax and eBay collects those.	0.0%	1.82%	1.82%	In local jurisdictions
	5.6%	2.78%	8.38%	Yes
	6.5%	2.95%	9.45%	Yes
	7.25%	1.6%	8.85%	Yes
	2.9%	4.91%	7.81%	Yes
	6.35%	0.0%	6.35%	Yes
No state-level sales tax.	0.0%	0.0%	0.0%	No tax
	6.0%	0.0%	6.0%	Yes
	6.0%	1.0%	7.0%	Yes
	4.0%	3.38%	7.38%	Yes
	4.0%	0.5%	4.5%	Yes
	6.0%	0.03%	6.03%	Yes
	6.25%	2.61%	8.86%	Yes
	7.0%	0.0%	7.0%	Yes
	6.0%	0.94%	6.94%	Yes
	6.5%	2.15%	8.65%	Yes
	6.0%	0.0%	6.0%	Yes
State rate 5% from January 1, 2025 (table is 2024 data).	4.45%	5.11%	9.56%	Yes
	5.5%	0.0%	5.5%	Yes
	6.0%	0.0%	6.0%	Yes
	6.25%	0.0%	6.25%	Yes
	6.0%	0.0%	6.0%	Yes
	6.88%	1.16%	8.04%	Yes
	7.0%	0.06%	7.06%	Yes
	4.23%	4.16%	8.39%	Yes
No state-level sales tax.	0.0%	0.0%	0.0%	No tax
	5.5%	1.47%	6.97%	Yes
	6.85%	1.39%	8.24%	Yes
No state-level sales tax.	0.0%	0.0%	0.0%	No tax
	6.63%	0.0%	6.6%	Yes
	4.88%	2.74%	7.62%	Yes
	4.0%	4.53%	8.53%	Yes
	4.75%	2.25%	7.0%	Yes
	5.0%	2.04%	7.04%	Yes
	5.75%	1.49%	7.24%	Yes
	4.5%	4.49%	8.99%	Yes
No state-level sales tax.	0.0%	0.0%	0.0%	No tax
	6.0%	0.34%	6.34%	Yes
	7.0%	0.0%	7.0%	Yes
	6.0%	1.5%	7.5%	Yes
	4.2%	1.91%	6.11%	Yes
	7.0%	2.55%	9.55%	Yes
	6.25%	1.95%	8.2%	Yes
	6.1%	1.15%	7.25%	Yes
	6.0%	0.36%	6.36%	Yes
	5.3%	0.47%	5.77%	Yes
	6.5%	2.88%	9.38%	Yes
	6.0%	0.57%	6.57%	Yes
	5.0%	0.7%	5.7%	Yes
	4.0%	1.44%	5.44%	Yes

Rates are data as of January 1, 2024; they vary by county and city, and eBay and Amazon compute the exact rate from the address. Sources: Tax Foundation · eBay

Three rules

eBay collects, you don't touch it

eBay is a marketplace facilitator: it calculates, collects and remits sales tax from the buyer to the state in 50 states, DC, Puerto Rico and participating Alaska localities, at no charge. But the final value fee is computed on the tax-inclusive total: in high-tax states your fee is slightly higher.

You pay tax when buying on Amazon

Amazon charges tax by delivery address; in dropshipping that is the buyer's address. Without an exemption certificate you pay 6–10% extra on every supply purchase, which cuts profit per sale directly.

An exemption certificate lowers your cost

A seller's permit / resale certificate from your state, uploaded to the Amazon Tax Exemption Program in an Amazon Business account, removes tax from purchases for resale. Using it for personal purchases is illegal.

How to get an exemption

Order matters: state registration first, then Amazon. It takes from a few days to a few weeks depending on the state.

Register your business with your state (LLC or sole proprietor) and get a seller's permit or resale certificate from the state revenue department; some states issue both as one document.
Open an Amazon Business account (a personal Prime account is not suitable for commercial purchases and exemptions).
Upload the certificate to the Amazon Tax Exemption Program (ATEP): state, document type, validity; approval usually within 24 hours.
For purchases where the exemption wasn't applied, request a tax refund from Amazon (invoice + certificate); not all sellers participate in ATEP.
Keep records: eBay collects the sales tax on items you bought tax-free; on your state return it is reported as collected by a marketplace facilitator. Ask your accountant.

Watch out

Shipping tax varies by state: most states tax shipping too; the 'tax applies to shipping' option in the calculators is for this.
Use the exemption certificate for resale only; using it for personal purchases is tax evasion.
Some states don't accept out-of-state resale certificates; Amazon may ask for a multistate (MTC) certificate or state forms.
Your income tax and returns are a separate matter; this guide covers sales tax only.

This page is general information, not tax advice; state rules and rates change. For your exact situation ask your accountant or the state revenue department.

How is it calculated?

eBay is a marketplace facilitator: it calculates, collects and remits sales tax from the buyer to the state. It never reaches you, but the final value fee is charged on the tax-inclusive total.
When you buy on Amazon, tax is charged by delivery address, that is the buyer's state. Without an exemption certificate it is added to your supply cost.
Tax exemption: get a seller's permit / resale certificate from your state, upload it to the Amazon Tax Exemption Program in an Amazon Business account; purchases for resale are then tax-free.
Table rates are Tax Foundation data (state + average local); they vary by county and city. The exact rate is computed by eBay and Amazon from the buyer's address.

Frequently asked questions

Does eBay collect sales tax for me?

Yes. As a marketplace facilitator eBay collects and remits tax in 50 states, DC, Puerto Rico and participating Alaska localities; you do nothing and pay no fee for it. But the fee base is the tax-inclusive total.

Why do I pay tax when buying on Amazon?

Amazon charges tax by delivery address; in dropshipping that is the buyer's address. If your resale exemption certificate is uploaded to Amazon, no tax is charged.

How do I get an exemption certificate?

Get a seller's permit or resale certificate from your state's revenue department, then upload it to the Amazon Tax Exemption Program in an Amazon Business account. Some states don't accept out-of-state certificates, and not every Amazon seller participates.

Is shipping taxed?

It depends on the state: most tax shipping too, some exclude separately stated shipping. The 'tax applies to shipping' option in the calculators is for this.

How current and exact is this table?

Rates are Tax Foundation's state and average local data as of January 1, 2024; Louisiana raised its state rate to 5% in 2025. The exact rate is computed by eBay and Amazon from the address; the table is for estimates.