eBay started charging sales tax on January 1, 2019, beginning with buyers in Washington and Minnesota. Collection then expanded state by state over the next four years, ending on January 1, 2023, when Missouri became the last state with a general sales tax to require the platform to collect. If you buy something on eBay today and ship it to an address in any state that has a sales tax, eBay adds the tax at checkout automatically.
Why 2019 and Not Earlier
For decades, a state could only require a business to collect its sales tax if the business had a physical presence there, such as a store, office, or warehouse. That rule came from the 1992 Supreme Court decision in Quill Corp. v. North Dakota. Most online sellers, including third-party sellers on eBay, fell outside it.
On June 21, 2018, the Supreme Court overturned that rule in South Dakota v. Wayfair, Inc., holding that states could require out-of-state sellers to collect based on economic activity alone. The South Dakota law at issue applied to sellers with more than $100,000 in gross revenue or more than 200 transactions in the state per year, and most states used that as a template.1Supreme Court of the United States. South Dakota v. Wayfair, Inc. Opinion
The ruling authorized the tax but didn’t decide who had to collect it. States answered that with marketplace facilitator laws, which put the collection duty on the platform rather than on each individual seller. All 45 states with a general sales tax, plus the District of Columbia, now have one on the books.2Streamlined Sales Tax. Marketplace Facilitator Because each state had to pass its own law, eBay couldn’t flip a national switch after Wayfair. Collection came online in waves.
The State-by-State Rollout
- January 2019: Washington and Minnesota were first, followed by Iowa in February and Connecticut in April.
- July through October 2019: The biggest wave, with more than 25 states switching on, including California, Texas, New York, and Pennsylvania.
- 2020: Illinois, Georgia, Hawaii, and Wisconsin at the start of the year, then Louisiana, Mississippi, and others by mid-year.
- 2021 and 2022: Florida and Kansas took effect in 2021; Maine followed in early 2022.
- January 2023: Missouri, the final state with a general sales tax, activated its marketplace facilitator law.
Once your state came online, eBay began adding tax to every taxable order shipped there, regardless of where the seller was located.
How the Tax on Your Order Is Calculated
eBay uses destination-based sourcing. The rate is set by your shipping address, not by where the seller lives or where the item ships from. The platform looks up the combined state and local rate for your zip code and applies it at checkout.
Combined rates around the country run from under 1% in some places to over 10% in others because cities and counties layer their own taxes on top of the state rate. Two buyers ordering the same item from the same seller can end up paying different amounts of tax simply because they live in different zip codes.
In most states, shipping and handling are taxable as part of the sale. If an item costs $50 and shipping is $10, the tax applies to the full $60. That prevents sellers from lowering the taxable amount by inflating shipping charges.
When You Won’t See Sales Tax at Checkout
Five states have no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Shipments to those addresses generally show no tax on eBay. Alaska is a partial exception, because it lets local jurisdictions impose their own tax, so some Alaska addresses do see a local rate.
Around 40 states offer some exemption for gold, silver, and other precious metal bullion or investment coins. The rules vary. Some states exempt all bullion, others only above a dollar threshold. If you buy coins regularly, check your state’s rule.
If you buy on eBay to resell in your own business, you can submit a resale certificate through eBay’s buyer exemption system and skip the tax on qualifying purchases. Nonprofits, schools, and government agencies can register for tax-exempt status the same way by uploading the appropriate certificate for their state.3eBay. Paying Tax on eBay Purchases
International Orders Are a Separate Charge
Sales tax and import duties are not the same thing. If your item ships from outside the United States, you may owe duties and fees on top of any sales tax eBay collects, and those charges are your responsibility as the buyer.4eBay. Tariff Updates: US Buyers
Until mid-2025, shipments valued at $800 or less came in duty-free under the de minimis exemption. That exemption has been suspended by executive order, and the suspension was continued in February 2026.5The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries Most international shipments, regardless of value, are now subject to applicable duties, taxes, and fees.
Some listings bake import fees into the price or collect them at checkout. When they don’t, the shipping carrier will contact you to collect before delivery. If you refuse the package over those fees, eBay’s Money Back Guarantee doesn’t apply.4eBay. Tariff Updates: US Buyers
What About Purchases Where No Tax Was Collected
In rare situations, tax may not have been collected on something you bought, such as a purchase made before your state’s marketplace facilitator law took effect, or a private transaction that didn’t go through eBay’s checkout. Nearly every state with a sales tax also imposes a use tax, which is your obligation to report and pay tax on those purchases yourself. The rate generally matches the sales tax rate.
In practice, marketplace facilitator laws now capture the tax at checkout on standard eBay orders, so this rarely comes up. When it does, you’re expected to self-report through your state income tax return or a separate filing with your state’s revenue department.