Selling on Etsy from the United States (2026): Fees, Payments, Tax Basics

Last verified 2026-10-25 · Selling by country · Published with AI assistance, sourced from official pages (how we work)

Short answer: The United States is on Etsy's Etsy Payments fee table. On top of the 6.5% transaction fee and the US$0.20 listing fee, a seller whose bank account is in the United States pays 3% + 0.25 USD per order.

Etsy fees for sellers in the United States

• Listing fee: US$0.20 per listing, each time it is created or renewed (listings last four months or until sold).
• Transaction fee: 6.5% of the item price plus shipping and gift wrap you charge.
• Payment processing: 3% + 0.25 USD per order, charged on the total sale price including shipping and any sales tax. Etsy says processing fees are subject to VAT where required.
• Currency: Your shop and payment account are in US dollars, so the US$0.20 listing fee needs no conversion and there is no currency-conversion fee on your own listings.

Offsite Ads

If a buyer clicks one of Etsy's off-site ads and buys within 30 days, you pay 15% of the order while your shop has always made under US$10,000 in any 365-day period (you may opt out), or 12% once you pass US$10,000 (opting out is no longer possible). The fee on a single order is capped at US$100, and revenue in other currencies is converted to USD to test the threshold. More in Offsite Ads explained.

Worked example in USD

An item at US$25.00 plus US$5.00 shipping, no buyer taxes: order total US$30.00.

Arithmetic illustration only. Offsite Ads is applied to the full order total as an approximation; check your own statements.

Tax and registration pointers (not tax advice)

We are not accountants. These pointers come from official government pages linked below; rules change and depend on your situation, so confirm with a qualified adviser.

• Etsy sales are business income. If your net earnings from self-employment are $400 or more in a year, the IRS says you must file Schedule SE and pay self-employment tax (15.3%: 12.4% Social Security plus 2.9% Medicare).
• Form 1099-K: for payments through a marketplace like Etsy, the IRS says platforms must send a 1099-K when you receive over $20,000 in more than 200 transactions in a year (the threshold was reinstated retroactively by the 2025 tax law). Platforms may send one below that, some states have lower thresholds, and you must report all income whether or not you get a form.
• Etsy collects and remits sales tax on orders shipped to US states with marketplace-facilitator laws. Whether you have any separate state sales-tax or business-licence duties depends on your state; check your state revenue department.

Next steps

• Run your own numbers in the fee calculator (choose United States).
• Compare with other countries in Etsy fees by country.
• Learn to price so your margin survives fees.