State Sales Taxes and State Income Taxes for eBay Sales

By Marsha Collier

If you plan to sell on eBay, you will need to takes state sales and state incomes taxes into account. Although you may believe that your eBay sales are not subject to these taxes, that doesn’t make it so. Check here for the details.

State sales tax

If your state has sales tax, a sales tax number is required before you officially sell something. If sales tax applies, you may have to collect the appropriate sales tax for every sale that falls within the state that your business is in. A 1992 U.S. Supreme Court decision said that states can only require sellers that have a physical presence in the same state as the consumer to collect so-called use taxes, but all that may have changed.

To find the regulations for your state, visit one of the following sites, which supply links to every state’s tax board. The tax board should have the answers to your questions.

State income taxes

Yes, it’s true. Not only is Uncle Sam in Washington, D.C., looking for his slice of your eBay profits, but your state government may also be hankering to join the feast.

If you have a good accountant, give that esteemed individual a call. If you don’t have one, find a tax professional in your area. Tax professionals actually do more than just process your income tax returns once a year; they can help you avoid major pitfalls even before April 15.

Here’s how to find out what your responsibilities are in your home state:

  • You may need to collect and pay state sales taxes, but only if you sell to someone in your state.
  • You can get tax information online at this website:
    TaxAdmin.org

    The site has links to tax information for all 50 states.

  • You can also call your state tax office and let the good folks there explain the requirements. The state tax office should be listed in the government section of your state government website.