Finance

Etsy Tax Calculator

Free Etsy tax calculator — estimate the income tax, US self-employment tax or UK/EU VAT you should set aside from your Etsy profit, plus what you actually keep after tax.

Etsy shop countryFees & VAT differ by countryAnnual Etsy revenue ($)Business expenses ($)Materials, fees, postage, ads, subscriptionsIncome tax rate (%)Your marginal rate — 22% US, 20% UK basicVAT rate (%)Only if VAT/GST registered

Add US self-employment tax (15.3%)

Social Security + Medicare on 92.35% of net profit. Untick for UK/EU sellers.

I am VAT / GST registered

Estimates output VAT on your sales before input-VAT reclaims.

Net profit

$18000.00

Revenue − expenses

Income tax

$3960.00

22% of profit

Self-employment tax

$2543.32

15.3% US

VAT due

$0.00

Not registered

Total tax to set aside

$6503.32

36.1% of profit

Take-home after tax

$11496.68

Monthly $958.06

Estimates only — not tax advice. Thresholds, allowances and deductions vary. Confirm with a qualified accountant in your country.

Popular long-tail searches from US users — jump straight to the tool.

How to use Etsy Tax Calculator

Enter your annual Etsy revenue and total business expenses.
Choose your country and enter your income tax rate.
Toggle US self-employment tax or UK/EU VAT.
See the tax to set aside and your true take-home.

Frequently asked questions

Do I have to pay taxes on Etsy sales?

Yes. Etsy income is taxable business income in the US, UK, EU, Canada and Australia, even if it is a side hustle. You are taxed on profit (revenue minus allowable expenses), not on gross sales.

How much tax should I set aside from Etsy income?

A common rule for US sellers is 25–30% of net profit to cover federal income tax plus 15.3% self-employment tax. UK sole traders usually set aside 20–30% for income tax and National Insurance.

What is the Etsy 1099-K threshold?

Etsy issues a US 1099-K based on the IRS threshold in force for that tax year, but your income is reportable whether or not you receive the form. Keep your own records of every payout.

Does Etsy collect sales tax for me?

Etsy automatically calculates, collects and remits US sales tax in states with marketplace facilitator laws, and handles VAT on digital downloads for EU/UK buyers. You still owe income tax on your profit.

Which Etsy expenses are deductible?

Materials, Etsy fees, shipping and packaging, ad spend, subscriptions, home-office use, mileage and equipment are typically deductible. Confirm with a local accountant.