Etsy Tax Calculator

Federal + 15.3% self-employment + state tax on 2026 Etsy sales, after fees, materials, shipping, ads, and your home studio.

Etsy's 1099-K reports gross sales — the full amount buyers paid. Your real taxable number is profit, so enter every shop expense to size accurate quarterly payments.

Etsy shop income & expenses

Enter the gross sales shown on your Etsy 1099-K — before fees. Etsy reports the full amount buyers paid, so your fees, materials, and shipping come off as Schedule C expenses. Everything stays in your browser.

Set aside from every payout
6.3%
Quarterly payment
$660
Total tax owed
$2,729

Breakdown

Gross Etsy sales$42,000
Shop expenses & fees− $22,900
Home studio (simplified)− $900
Net shop profit$18,200
Self-employment tax (15.3%)$2,572
Federal income tax$81
CA state tax (est.)$76
Total tax liability$2,729

Etsy issues a 1099-K on gross sales. Sales tax Etsy collects and remits for you is not your income — exclude it. Because nothing is withheld, quarterly estimated payments keep you clear of IRS underpayment penalties.

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