Your Guide to Sales Tax on Poshmark

In 2018 and 2019, a number of states and the District of Columbia enacted new laws that require online marketplaces to collect and remit sales tax. As a result, on April 1, 2019, we launched Posh Remit, our tax remittance service, and began to collect sales tax on all eligible orders and submit it directly to states and localities on behalf of Seller Stylists. 

As of August 22nd, Poshmark will no longer collect and remit sales tax in Florida, Georgia, Hawaii, Illinois, Kansas, Missouri, Tennessee, and Utah until online marketplace laws go into effect in those states. We’ve updated our Terms of Service, effective as of August 14th, to reflect these changes. 

We’ll be sure to keep you updated as new state laws go into effect. To see how much sales tax has been collected and remitted on your behalf, download your My Sales Report. If you are unsure what your tax obligations may be, we encourage you to consult an accountant or other expert in your area.

States and dates where Poshmark has begun collecting and remitting sales tax:  

State  Date
Alabama April 1, 2019
Arkansas April 1, 2019
Arizona April 1, 2019
California April 1, 2019
Colorado April 1, 2019
Connecticut April 1, 2019
District of Columbia April 1, 2019
Iowa April 1, 2019
Idaho April 1, 2019
Indiana April 1, 2019
Kentucky April 1, 2019
Louisiana  April 1, 2019
Massachusetts April 1, 2019
Maryland April 1, 2019
Maine April 1, 2019
Michigan April 1, 2019
Minnesota April 1, 2019
Mississippi April 1, 2019
North Carolina April 1, 2019
North Dakota April 1, 2019
Nebraska April 1, 2019
New Jersey April 1, 2019
New Mexico April 1, 2019
Nevada April 1, 2019
New York April 1, 2019
Ohio April 1, 2019
Oklahoma April 1, 2019
Pennsylvania April 1, 2019
Rhode Island April 1, 2019
South Carolina  April 1, 2019
South Dakota April 1, 2019
Texas April 1, 2019
Virgina April 1, 2019
Vermont April 1, 2019
Washington April 1, 2019
West Virginia April 1, 2019
Wisconsin April 1, 2019
Wyoming April 1, 2019

* Poshmark collected and remitted state and local sales tax for Florida, Georgia, Hawaii, Illinois, Kansas, Missouri, Tennessee, Utah, Guam, Puerto Rico, American Samoa, Northern Marianas Islands, and the US Virgin Islands, as well as local taxes in Alaska between 4/1/2019 – 8/21/2019.

FAQs

How is sales tax calculated?

State and local sales tax, when applicable, will be charged on items purchased on Poshmark that are shipped to a U.S. address. The amount of sales tax charged on an order is based on a number of factors including, but not limited to:

  • Type of item purchased
  • Buyer’s delivery address
  • Seller’s return address 
  • Shipping costs 

Please note, Poshmark does observe states’ sales tax holidays. Poshmark will not charge applicable sales tax on these dates to the extent that the law exempts the specific item that is purchased.

Where does Poshmark no longer collect sales tax?
Poshmark no longer collects and remits sales tax in:

  • Florida
  • Georgia
  • Hawaii
  • Illinois
  • Kansas
  • Missouri
  • Tennessee
  • Utah
  • Guam
  • Puerto Rico
  • American Samoa
  • Northern Marianas Islands
  • U.S. Virgin Islands

* Poshmark collected and remitted state and local sales tax between 4/1/2019 – 8/21/2019. 

FAQs for Sellers

What does sales tax mean for me?
Poshmark will automatically calculate, collect, and submit state and local sales tax on the seller’s behalf, as applicable, on a regular basis. If you’d like to review how much sales tax has been collected and remitted for your sales simply request your My Sales Report.

A list of states where Poshmark currently collects and remits sales tax can be found above.  

What does this mean when I have to report taxes?
Poshmark will calculate, collect, and remit sales tax on behalf of our sellers to state taxing agencies on a regular basis to only the states listed in the chart above. 

If you are unsure what your tax obligations may be, we encourage you to consult an accountant or other expert in your area. 

FAQs for Shoppers

Why did I get charged sales tax?
Poshmark is responsible for collecting and remitting sales tax, as applicable, per state laws and local tax laws or where Poshmark is otherwise obligated to do so. Sales tax can vary per order due to several factors. If you have an available Posh Credit balance, your credits will first be applied towards your order, which includes sales tax, prior to charging your payment method. 

Please note, Poshmark does observe states’ sales tax holidays. Buyers will not be charged applicable sales tax on these dates to the extent that the law exempts the specific item that is purchased. If you have any questions or concerns, contact us here.  

Why am I being charged sales tax on used items?
Poshmark is responsible for collecting and remitting sales tax, as applicable, per state and local tax laws or where Poshmark is otherwise obligated to do so.

Items that may be taxed include, but are not limited to:

  • Used items
  • Boutique items
  • Wholesale items

Sales tax is generally imposed on all sales of tangible personal property (e.g., clothing, shoes, accessories) regardless of whether the property being sold is new or used. Sales tax may be applicable to used items purchased on Poshmark because the item is being purchased/sold in a different transaction. There is generally not an exemption for the sale of used items.  

Why was I charged a different sales tax amount for my offer?
Sales tax on completed offers may vary from the estimated tax amount shown at the time the offer is made due to several factors such as:

  • Final offer price
  • Delivery address
  • Tax rates

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