Recent changes in sales tax laws in some states require OfferUp (and other online marketplaces) to collect and remit sales tax on certain sales. OfferUp collects sales tax at the basic personal property rate for items sold into a state where OfferUp will be considered the “seller” for sales tax purposes. OfferUp collects tax on items sold through OfferUp’s payment processing services (including Shipping and Hold Offer).
OfferUp will automatically calculate and apply the tax rate for items sold into affected states. If you are an individual casual seller selling a taxable item, you won’t need to take any additional steps: OfferUp will handle the calculation, filing, and reporting as if the sale was made by OfferUp. If you are a merchant, you will also want to track sales made into affected states through OfferUp so that you don’t separately collect and remit sales tax.
For shipped items
We determine the sales tax rate based on the ship-to address of the buyer. If your ship-to address is in one of the states below, we will collect and remit sales tax on your shipped purchase.
For items picked up in person
The sales tax for an in-person transaction is based on the location where the item was posted.
You should note that OfferUp does not collect taxes on sales that are paid in cash or through an off-platform payment service, so if sales or use taxes are due on such sales, you will need to manage that yourself. In addition, OfferUp does not collect sales tax in states where OfferUp would not be considered the “seller” under the applicable marketplace sales tax laws, but you may have a separate tax collection and reporting requirement in those states for sales made through our payment processing services.
OfferUp currently collects and remits sales tax in these states:
- District of Columbia
- New Jersey
- New Mexico
- New York
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Many state marketplace seller laws are new and we expect further changes as additional states add marketplace seller tax laws or as the requirements clarified. We encourage you to check this page for updates. We understand that this change may come as a surprise to some users who are not used to collecting and remitting sales tax for casual sales. We believe that these marketplace laws should only apply to traditional merchant sales and we are working to try to amend these laws. If you are unhappy with the application of sales tax requirements to casual sales, we encourage you to reach out to your state legislators.
If you believe that tax should not have been applied to a purchase you made, or if you believe that the personal property rate is the incorrect rate for the item you purchased, we encourage you to contact your state Department of Revenue to collect a refund.