Fees and profit
eBay sales tax: who pays it and how it moves your fee
eBay collects and pays the sales tax of US buyers. But the final value fee is charged on the total including that tax, so the same sale leaves you a little less in a state with sales tax.
In the US, states set sales tax. As the marketplace, eBay collects the buyer's tax at checkout and pays it to the state itself. As a seller you don't collect or file this tax; your payout record shows the amount with the tax already taken out.
The fee is charged on the total including tax
eBay's final value fee is worked out on the total amount of the sale: item price, shipping, handling and sales tax included. So even though the tax isn't yours, part of the fee is charged on it.
- Example (the tax rate is an example): a $40.00 item, free shipping, 8% tax in the buyer's state. Total $43.20.
- Most categories charge 13.6% plus $0.40 per order: $43.20 × 13.6% = $5.88, $6.28 in all.
- The same sale in a state without sales tax: $40.00 × 13.6% = $5.44, $5.84 in all. The difference is $0.44, about 1.1% of the item price.
What it does to your profit
If you take only 13.6% of the item price, you underestimate the real cut. When most of your sales go to states with sales tax, the cut as a share of the item price comes out a few points higher, and a seller registered in Türkiye also pays an international fee. The most accurate rate is the one your own payout records show.
Try the arithmetic step by step with the fee calculator; every fee line is in fees and net profit.
Common questions
Does the seller pay sales tax on eBay?
No. eBay collects the US buyer's sales tax at checkout and pays it to the state itself.
Does eBay charge its fee on the sales tax too?
Yes. The final value fee is worked out on the total amount, item price, shipping and sales tax included.