Collecting Sales Tax on eBay
eBay only allows sellers to collect one sales tax rate per state. This system isn’t ideal for sellers based in a destination-based sales tax state or sellers who have sales tax nexus in more than one state.
So how much do you collect?
If you sell in multiple states, we recommend charging your customers the “average” sales tax rate in each state.
But there’s one exception! If you live in one of the “origin-based” sales tax states, charge the rate at your business location. You can look this rate up with TaxJar’s Sales Tax Calculator. Note: If you do NOT have a location in a state, our accounting advisors recommend taking an average of the sales tax rates in the 5 most populous cities in the state. While this is imperfect, it gives you the best chance of collecting as correctly as possible.
Origin based states:
- New Mexico
Use the table below to find your nexus states and fill in your sales tax rates.
TaxJar is Here to Help
Not sure how much sales tax you collected versus how much you should have collected? TaxJar’s “expected sales tax due” report will straighten you out. Sign up today to import your last 60 days of eBay sales for free!
eBay Sales Tax Table
Weighted average sales tax rates in each state.
|State||Avg. Sales Tax Rate||Shipping & Handling|
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