How is sales tax calculated?
Sales tax is automatically calculated for each order based on the “ship to” address, specifically the zip code.
The exact sales tax percentage varies not only by state but also within different areas of the same state. Sales tax is calculated based on the Printify production price (or the final retail price for California).
In some states, the shipping fee is also taxable.
Printify will only collect sales tax in the states where we are registered in the US, including cases where merchants sell to US-based customers from abroad—in other words, when an order is imported into the US.
Here are examples of potential cases:
| Ship from → Ship to | Valid resale certificate submitted? | Sales tax rate | Example |
|---|---|---|---|
| US → US | No | Sales tax is calculated based on destination. |
T-shirt (USD 10) from CA to FL, FL sales tax is charged (6%*). Merchant pays USD 10.60 and does not have to charge sales tax to end customer. Final cost: USD 10.60 |
| US → US | Yes | No taxes are calculated. Merchant needs to charge sales tax on sales to end customers. |
T-shirt (USD 10) from NY to WA, merchant is not charged with WA sales tax (6.5%*). Merchant pays USD 10 to Printify. Final cost: USD 10 |
| Rest of the World → US | No | Sales tax is calculated based on destination (US). |
T-shirt (USD 10) from Germany to NY (US), NY sales tax is charged (4%*). Merchant pays USD 10.40 (final cost). |
| Rest of the World → US | Yes | No taxes are calculated. Merchant needs to charge sales tax on sales to end customers. |
T-shirt (USD 10) from Latvia to NY (US), merchant is not charged with NY sales tax (4%*). Merchant pays USD 10 to Printify. Final cost: USD 10. |
| US → Rest of the World | Irrelevant | n/a | No sales tax added. |
Abbreviations used: US – United States, CA – California, FL – Florida, NY – New York, WA – Washington.
* State Tax Rate. These examples do not take into account the sales tax rates for cities or counties.