Selling on Etsy to buyers in the USA or the UK? This free Etsy tariff calculator shows what you actually keep from each order after Etsy’s commission and fees, VAT, and US import tariffs. It uses Etsy’s 2026 fee rates for your shop country, adds UK VAT the way Etsy collects it, and works out the US duty you now have to prepay on orders shipped from outside the US. It also tells you what to charge to keep the same profit.
US import tariff (orders shipped into the US)
UK import (orders over £135 from outside the UK)
Fee rates and exchange rates used (editable)
How to use the Etsy tariff calculator
Pick the country your Etsy Payments account is in and where the buyer lives. Then enter your price, the shipping you charge, and what the item and postage cost you. The calculator fills in Etsy’s fee rates for your country, adds the tax Etsy collects from the buyer, and deducts the US tariff if you ship into the US from abroad. Open “Fee rates and exchange rates used” to adjust any rate.
Fill in the target profit box and it also works out the item price you need to charge. For US orders shipped from outside the US, it shows how much to raise your price so the tariff doesn’t eat into your profit.
Etsy fees in 2026
Every sale pays a 6.5% transaction fee on the item price plus shipping and gift wrap (not on sales tax or VAT), and a US$0.20 listing fee. Etsy Payments then takes a processing fee, which depends on where your bank account is. That fee is charged on the whole order, including any tax Etsy collects from the buyer.
| Shop country | Payment processing | Regulatory operating fee |
|---|---|---|
| United States | 3% + US$0.25 | — |
| United Kingdom | 4% + £0.20 | 0.48% |
| Pakistan | 6.5% + US$0.30 | — |
| India | 5% + ₹25 | 0.05% |
| Eurozone (e.g. Germany) | 4% + €0.30 | France 1.14%, Italy 0.80%, Spain 0.88% |
| Canada | 3% + C$0.25 (4% for orders outside Canada/US) | 0.50% |
| Australia | 3% + A$0.25 (4% for international orders) | — |
Other fees can apply on top: Offsite Ads (15%, or 12% for shops over $10,000 a year, capped at $100 per order) and a 2.5% currency conversion fee when your listing currency differs from your bank’s currency.
US tariffs on Etsy orders in 2026
The US ended its US$800 duty-free “de minimis” allowance on 29 August 2025, and CBP has since suspended it indefinitely. So nearly every parcel sent to a US buyer from abroad now owes import duty, however cheap it is.
Since 9 July 2026, Etsy requires sellers outside the US to ship US orders Delivered Duty Paid (DDP). That means you prepay the duty through your carrier and build it into your price. If the buyer is charged duty on delivery instead, they can get a refund and Etsy deducts it from you.
The US Supreme Court struck down the 2025 “reciprocal” tariffs in February 2026. A temporary 10% global tariff (Section 122) followed and ended on 24 July 2026. It was replaced by Section 301 tariffs on 60 economies, which are added on top of the normal (MFN) duty:
| Where the goods were made | Extra US tariff |
|---|---|
| Pakistan, India, UK, Bangladesh, Sri Lanka, Indonesia, Malaysia, Canada, Mexico and others | 10% |
| China, Vietnam, Türkiye, Australia and most other listed economies | 12.5% |
| European Union, Taiwan | Brings the total up to 10% (none if MFN is already 10%+) |
| Japan, South Korea, Switzerland | Brings the total up to 12.5% |
| Canada/Mexico goods that qualify under USMCA | 0% |
US duty is charged on the value of the goods, not the shipping. Goods from China also still pay the older China tariffs (7.5% or 25%). Steel, aluminium and a few other goods are excluded from these rates and taxed differently. If you sell from inside the US, none of this applies to domestic orders.
Selling on Etsy from Pakistan or India to the USA
Etsy shops in Pakistan pay the highest payment processing fee, 6.5% + US$0.30 per order, on top of the 6.5% transaction fee. Goods made in Pakistan or India also face an extra 10% US tariff, and under Etsy’s DDP rule you pay it before the parcel leaves.
Example: a Pakistan shop sells a US$40 item with US$10 shipping to a US buyer (7% sales tax). Etsy fees come to US$7.23 and the 10% US duty is US$4.00. After a US$12 item cost and US$9 postage, you keep US$17.77. Without the tariff you would keep US$21.77, so you would need to raise the item price to about US$45.23 to cover it.
Etsy shops in India pay 5% + ₹25 for payment processing, plus a 0.05% regulatory operating fee.
UK VAT on Etsy sales
Sellers outside the UK: for parcels worth £135 or less, Etsy adds 20% UK VAT at checkout and pays it to HMRC. The buyer pays the VAT, but your processing fee is charged on it. No customs duty is due at that value. Above £135, Etsy doesn’t collect VAT. Instead, the buyer pays import VAT, any customs duty and a carrier handling fee when the parcel arrives. That can put buyers off, so many sellers split orders or mention it in the listing. Etsy also collects UK VAT on digital downloads sold to UK buyers.
UK sellers: you only charge VAT once you’re VAT-registered. Registration is required when your taxable turnover passes £90,000 in any 12 months. Once registered, 1/6 of a VAT-inclusive price to a UK buyer goes to HMRC, while exports to US buyers are zero-rated. Etsy also charges 20% VAT on its fees to UK sellers. If you’re VAT-registered and have given Etsy your VAT number, this is handled by the reverse charge, so it costs you nothing overall.
Frequently asked questions
How much commission does Etsy take in 2026?
The transaction fee is 6.5% of the item price plus shipping. With payment processing (3% + $0.25 in the US, 4% + £0.20 in the UK, 6.5% + $0.30 in Pakistan) and the $0.20 listing fee, most sellers pay roughly 10–14% of the order in total, before any Offsite Ads fee.
Do I have to pay US tariffs on Etsy orders?
Yes, if you ship into the US from another country. The duty-free allowance ended in August 2025, and since 9 July 2026 Etsy requires non-US sellers to ship Delivered Duty Paid, so you pay the duty and include it in your price. US sellers shipping inside the US don’t pay tariffs on those orders.
What is the US tariff on goods from Pakistan, India and the UK?
An extra 10% under the Section 301 tariffs in force since 24 July 2026, added to the item’s normal MFN duty. China, Vietnam, Türkiye and Australia are at 12.5%. EU goods are topped up to 10% in total.
Does Etsy collect UK VAT for me?
Yes, for sellers outside the UK on orders worth £135 or less, and on digital downloads sold to UK buyers. Etsy adds 20% at checkout and pays it to HMRC. UK sellers handle their own VAT once they’re registered.
Is Etsy’s fee charged on VAT or sales tax?
The 6.5% transaction fee isn’t. The payment processing fee is, because it’s charged on the full amount the buyer pays, including any tax Etsy collects.
Do UK sellers pay VAT on Etsy fees?
Etsy adds 20% VAT to its fees for UK sellers. If you’re VAT-registered and have added your VAT number, it’s handled by the reverse charge and costs nothing overall. If you’re not registered, it’s a real extra cost.
What is Etsy DDP shipping?
Delivered Duty Paid means the seller pays US import duty and customs fees through the carrier before delivery, so the buyer pays nothing extra at the door. Etsy has required it for orders shipped into the US from other countries since 9 July 2026.
How is US duty calculated on an Etsy order?
Multiply the item’s value (not the shipping) by the duty rate: the product’s normal MFN rate plus the extra Section 301 tariff for the country where it was made. For example, a US$40 item made in Pakistan with 0% MFN duty pays 10%, which is US$4.00.
Related tools
Estimates using Etsy’s published fee rates and US and UK tariff rules as of September 2026. Tariffs and fees change often. Exchange rates are approximate, and your product’s duty rate depends on its HTS/commodity code. Check Etsy’s US tariffs estimator, your carrier’s DDP quote and the UK Trade Tariff before pricing. This is not tax or customs advice.