Etsy Seller Tax Calculator
Income tax estimator for Etsy shop owners and handmade sellers. Track inventory costs, shipping, and platform fees.
Tax Estimator
Beginner-friendly calculator. Enter income, add optional expenses, see your take-home.
Adding expenses reduces taxable profit.
Add items like software subscriptions, equipment, and utility costs.
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Disclaimer: This tool provides estimates based on 2025/2026 tax rates. It does not constitute professional tax advice. Please consult a qualified accountant for your specific situation.
Etsy Seller Tax Guide 2026
Etsy sellers must track "Cost of Goods Sold" (COGS) separate from operating expenses. Inventory is not deductible until it is sold.
Etsy Write-offs
- Materials (COGS): Beads, fabric, wood, packaging materials. Deducted when the item sells.
- Shipping: Postage labels, bubble wrap, tape, and boxes.
- Etsy Fees: Listing fees, transaction fees, and off-site ads.
- Home Studio: Space used exclusively for making/storing products.
- Equipment: Cricut machines, printers, sewing machines, and tools.
Disclaimer
This calculator provides estimates based on 2025/2026 tax laws. Every tax situation is unique. Please consult with a qualified CPA or tax professional before making financial decisions.
Common Questions
Can I deduct unsold inventory?
No. You can only deduct the cost of materials when the finished product is sold (Cost of Goods Sold). Unsold inventory is an asset, not an expense.
What if I didn't get a 1099-K from Etsy?
You must report your income regardless of whether you received a 1099-K. The 1099-K is just an informational form; your actual sales record is what matters.
Is shipping tax deductible?
Yes, the cost of postage and shipping materials is a fully deductible business expense.