Who was it that said The only two sure things in life are death and taxes? Contrary to rumors, your eBay sales are 99% certain to be subject to taxes, but it doesn't have to be the death of you.

State Taxes:

Almost every state requires a retail seller to collect sales taxes. These taxes are figured on the retail price of the sold item and are turned into the state by the seller on a regular basis.

Please check with your accountant to be sure that your sales are subject to sales and personal taxes. There are only a very few exceptions where they are not.

Information on state taxes can be found by clicking on the state name in the chart below:

Alabama Alaska Arizona Arkansas California
Colorado Connecticut Delaware Washington, D.C. Florida
Georgia Hawaii Idaho Illinois Indiana
Iowa Kansas Kentucky Louisiana Maine
Maryland Massachusetts Michigan Minnesota Mississippi
Missouri Montana Nebraska Nevada New Hampshire
New Jersey New Mexico New York North Carolina North Dakota
Ohio Oklahoma Oregon Pennsylvania Rhode Island
South Carolina South Dakota Tennessee Texas Utah
Vermont Virginia Washington West Virginia Wisconsin
Wyoming


In addition to state taxes, you may also be subject to local taxes. Please check with your village, town, city, or county for further information.

Federal Taxes

Federal taxes will be due on the profit from your sales. Depending on how you set your business up, you will be either an Individual, a Partnership, or a Corporation. Consulting your accountant is a wise step here, as there are different tax and legal considerations for each business type.

You can also get help from:
Small Business Advisor
United States Small Business Administration