eBay Commission Fees to Be Taxed in Texas

Sellers in Texas will have to pay sales tax on the commission fees they pay to marketplaces like eBay beginning on October 1st. But as sellers know all too well, eBay charges commission fees not only on the price of the item plus shipping - but sellers pay commission fees on the sales tax that buyers pay to states. 

That means a seller pays a commission to eBay on the total transaction amount, including state sales tax - and now, sellers in Texas will also pay sales tax on that eBay commission fee, which seems convoluted, to say the least. 

The fear is that other states will hop on the bandwagon once they realize there's a new way to squeeze more money out of online sales, as TaxCloud pointed out in a post on September 9, writing, "If you're in multiple states, expect more states to revisit how marketplace fees are taxed - Texas may not be the last."

A reseller who published the following video on his "Justin Resells" YouTube channel on Wednesday agreed, and he broke down how much extra a seller in Texas could expect to pay using his 2024 sales as an example:

In its post, TaxCloud noted that, "For CPAs, controllers, and finance teams, it means adjusting forecasts, reconciling new fee structures, and preparing clients for tighter margins in Texas."

TaxCloud advised sellers to plan for a change in cash flow: "Your payouts from platforms like Amazon may be slightly smaller starting in October."

Does the tax apply only to sellers in Texas? TaxCloud wrote, "If you don't have nexus in Texas, you won't be charged. But if you're based in Texas, or already registered there, this applies to you."

But sellers lost the "nexus" battle in the South Dakota v. Wayfair ruling from the Supreme Court, which ruled that economic nexus counted - not just physical nexus - so this under-the-radar move by Texas going into effect in one week may be the beginning of something that will add up for sellers everywhere.

Word is getting out about the change on social media - on Tuesday, a seller named Scott posted a video on his ChaChingKing YouTube channel, and he said in researching it he found Julie of "Casachic_store" on Instagram had written about it the previous day.

However, marketplaces themselves have been generally quiet about the news. Justin Resells said he had yet to hear any announcement from eBay about the new Texas sales tax on fees. Etsy emailed sellers in late August, at which point prolific poster WastingTime posted the news on the eBay discussion boards.

The news has been slow to get out to sellers until Poshmark notified its sellers earlier this week. In a Facebook comment, a Poshmark seller shared: "We already are taxed when we buy the item now we get taxed again for selling our own merchandise! Smh." Sellers posted Poshmark's announcement in various posts, including the following post on Instagram:

Starting October 1, 2025, Poshmark will begin collecting the Texas Seller Fee Tax for sellers located in Texas. Poshmark is required to collect and remit this tax to the Texas Comptroller under state law.

Here's what you need to know:

- This applies to sales made by sellers with a Texas return address.

- The tax is calculated as 6.25% on 80% of the Poshmark commission on your sales.

- The amount will be deducted automatically from your earnings and displayed in your order details, My Sales Report, and sold item emails.

No action is required from you. If you are unsure what your tax obligations may be, we encourage you to consult an accountant or other expert in your area.

Thank you for being part of the Poshmark community.

Let us know if eBay or other marketplaces on which you sell have notified you of the pending change yet, and, if you're based in Texas, how you plan to deal with the new sales tax on commission fees.

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