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 2019, Poshmark will no longer collect and remit sales tax in Georgia, Hawaii, Illinois, 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, 2019, 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:
|Alabama||April 1, 2019|
|Alaska (local taxes only)||April 1, 2020|
|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|
|Florida||July 1, 2021|
|Georgia||April 1, 2020|
|Hawaii||January 1, 2020|
|Idaho||April 1, 2019|
|Illinois||January 1, 2020|
|Indiana||April 1, 2019|
|Iowa||April 1, 2019|
|Kansas||July 1, 2021|
|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|
|Puerto Rico||October 1, 2020|
|Rhode Island||April 1, 2019|
|South Carolina||April 1, 2019|
|South Dakota||April 1, 2019|
|Tennessee||October 1, 2020|
|Texas||April 1, 2019|
|Utah||November 14, 2019|
|Virginia||April 1, 2019|
|Vermont||April 1, 2019|
|Washington||April 1, 2019|
|West Virginia||April 1, 2019|
|Wisconsin||April 1, 2019|
|Wyoming||April 1, 2019|
FAQs* Poshmark collected and remitted state and local sales tax for Florida, Georgia, Hawaii, Illinois, Kansas, Missouri, Tennessee, 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.
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:
- 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.
Why is Poshmark collecting sales tax in Florida and Kansas now?
Online marketplace laws recently went into effect in these states. As a result, Poshmark will begin to collect and remit sales tax on July 1, 2021.
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
4 thoughts on “Your Guide to Sales Tax on Poshmark”
I don’t understand why the seller is charged sales tax and not the purchaser. I pay sales tax when I purchase items, so how come we can’t tack the tax on at the end of the purchase and have the buyer cover it? I’m getting taxed twice and not making any profit for selling my used clothes. For the casual seller – not a business – this is a disincentive to use poshmark. I sold one thing and can’t bring myself to sell anymore on this platform.
I am a buyer, and I am ALWAYS charged sales tax. In my state (TN) and city, it’s 9.75%. I’m not saying it’s fair that sellers are charged sales tax, and it really *doesn’t* make sense, but buyers are paying it, too, just so you know.
This is tax robbery!!! The majority of the products/items for sale on Poshmark is used and previously purchased, which means taxes have already been paid. The different transaction shouldn’t even be considered here. For this reason, I will be deleting my Postmark account. I am already tax & insurance broke!
I completely agree! I just executed my first sale and noticed that I was charged tax for an item I already paid taxes on!! I would rather donate my goods vs being double taxed. Not sure how this loophole flies.