Yes, Reverb does charge sales tax on most orders shipped within the United States. The platform calculates the tax automatically at checkout based on your shipping address, collects it from you, and sends it directly to your state’s revenue department. Sellers never handle the money. The rate you pay depends entirely on where your gear is going, with combined state and local rates currently ranging from under 2% to just over 10%.
How Your Rate Is Calculated at Checkout
Reverb uses destination-based sourcing. Your specific shipping address determines the combined rate for your state, county, city, and any special taxing districts. A buyer in downtown Chicago pays a different rate than someone in rural Montana, and the checkout page handles the lookup for both of them.
Most buyers land between 6% and 9%. The highest combined state-and-local rate reaches about 10.11%. Many jurisdictions also tax the shipping cost, so the tax often applies to the full amount you pay rather than the item price alone.
One detail that surprises buyers: used gear is taxed at the same rate as new gear. Sales tax applies to the retail transaction, not the item’s condition. A $2,000 vintage amplifier and a $2,000 brand-new amplifier shipped to the same address generate the same tax.
When You Won’t Pay Sales Tax
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Delaware, New Hampshire, and Oregon have no local sales taxes either, so buyers there generally pay nothing extra. Alaska allows local municipalities to impose their own sales taxes, and Montana permits local taxes in resort and high-tourism areas, so a small charge can still appear depending on your exact address.
Outside of geography, purchases made with a valid resale certificate are exempt (more on that below). In rare cases involving transactions that fall outside established marketplace facilitator rules, Reverb’s automatic collection may not apply. For the vast majority of domestic orders, expect tax at checkout.
Why Reverb Has to Collect It
Until 2018, online platforms could only be forced to collect sales tax in states where they had a physical presence. The Supreme Court’s decision in South Dakota v. Wayfair, Inc. scrapped that rule, holding that states could require tax collection from any seller with enough economic activity in the state.1Supreme Court of the United States. South Dakota v. Wayfair, Inc. That opened the door for nearly every state with a sales tax to pass marketplace facilitator laws, which place the collection burden on the platform rather than the individual seller.
Reverb confirms this directly: in marketplace states, it collects and remits sales tax on the seller’s behalf, and sellers cannot override or opt out of collection in those states.2Reverb. Reverb Sales Tax Information
What Sellers Should Know
If you’re selling on Reverb, the sales tax piece is largely handled for you. Reverb calculates the tax, adds it to the buyer’s total, collects it, and sends it to the state. The tax money never enters your Reverb Payments balance or PayPal account. You don’t need to register for sales tax permits in every state where you ship gear, and you don’t file sales tax returns for transactions Reverb facilitated.2Reverb. Reverb Sales Tax Information
One thing worth pricing into your listings: Reverb’s payment processing fee is calculated on the full order amount, including the tax portion.3Reverb Help Center. What Fees Will I Pay for Selling on Reverb? The 5% selling fee is based on the total sale amount including shipping.
Buying to Resell? The Resale Certificate Exemption
If you’re buying gear on Reverb specifically to resell it through your own business, you may qualify to purchase without paying sales tax. You have to submit a valid resale certificate to Reverb, proving you’ll collect tax from the end customer when you eventually sell the item. The Multistate Tax Commission publishes a Uniform Sales and Use Tax Resale Certificate that many states accept; it requires your registered business name, tax ID number, business description, and signature.4Multistate Tax Commission. Uniform Sales and Use Tax Resale Certificate Some states use their own forms instead, available from the state’s department of revenue.
This is not a loophole for personal purchases. Using a resale certificate to avoid tax on gear you plan to keep is fraud, and states impose both civil and criminal penalties. If you buy something tax-exempt and later decide to keep it, you’re required to self-report and pay use tax on that item. The certificate must be fully completed and current, or Reverb will apply the standard tax rate.
International Orders Are Different
Reverb’s U.S. sales tax collection only applies to domestic transactions. When you import gear from another country, you’re responsible for any customs duties and import taxes yourself. The shipping carrier bills these during customs clearance or upon delivery, not at Reverb’s checkout.5Reverb Help Center. Will I Pay Import Fees?
Duty rates on musical instruments vary by the type of instrument and its country of origin. U.S. Customs and Border Protection classifies instruments under Chapter 92 of the Harmonized Tariff Schedule, and the duty is assessed on the price you paid, converted to U.S. dollars.6U.S. Customs and Border Protection. What Is the Duty Rate for Musical Instruments Imported into the United States? Antique instruments over 100 years old are exempt from duty.
Previously, imports valued at $800 or less could enter the U.S. duty-free under the de minimis exemption. That exemption has been suspended, and all shipments are now subject to applicable duties, taxes, and fees regardless of value.7The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries If you’re eyeing a $300 effects pedal from overseas, factor in duty charges that didn’t exist a couple of years ago. If a return becomes necessary, you’ll need to contact the carrier directly about recovering any customs charges you paid.