| State | State Rate | Avg Local | Combined |
|---|
Good news: Marketplace Facilitator Laws mean platforms like eBay, Poshmark, Mercari, and Amazon collect and remit sales tax for you in most states. You generally don't need to do anything.
⚠️ Important: This information is for reference only. Tax laws change frequently. Consult a tax professional for advice specific to your situation.
Local/In-Person Sales: Garage sales, flea markets, craft fairs in your state may require you to collect sales tax.
Your Own Website: If you sell directly (not through a marketplace), you may have nexus obligations.
Facebook/Craigslist: These don't collect tax for you—local sales may require collection depending on your state.
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose sales tax.
Some states exempt clothing from sales tax (fully or partially): Pennsylvania, New Jersey, Minnesota, and New York (under $110/item). This can affect resellers selling apparel!
The IRS 1099-K reporting threshold is $5,000 for 2024 (was $600, phased increase). This is for tax REPORTING, not collection—you still owe taxes on all income regardless of 1099-K.