Reseller Sales Tax Basics: What You Need to Know
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Sales tax is one of the least exciting parts of reselling and one of the easiest to get wrong by ignoring it. This is a starting point, not tax advice — always confirm specifics with a tax professional or your state's Department of Revenue.
Marketplace facilitator laws changed the picture
Most major platforms (eBay, Poshmark, Depop) are considered "marketplace facilitators" under current US law, meaning the platform itself collects and remits sales tax on your behalf for most transactions. This doesn't mean you're off the hook entirely — it shifts collection, not your overall tax responsibility.
What still falls on you
- Income tax on your actual profit — sales tax collection by a platform has nothing to do with whether you owe income tax on what you earned
- Sales made outside marketplace facilitators — your own storefront, in-person sales, or platforms that don't auto-collect
- Any state-specific reseller permit or registration requirements, which vary significantly by state
Getting a resale certificate
If you're buying wholesale inventory intended for resale, a resale certificate (sometimes called a seller's permit) generally lets you buy inventory without paying sales tax upfront, since tax will instead be collected from your end customer. Requirements and application processes vary by state — check your state's Department of Revenue site directly.
The bottom line
Marketplace facilitator laws have simplified a lot of the sales tax burden for resellers selling through major platforms, but they haven't eliminated your responsibility to track income and understand your state's specific requirements. When in doubt, a short conversation with a tax professional is worth far more than guessing.