How is sales tax calculated?

The general formula for calculating sales tax is:

((Retail Price + Retail Shipping) * Tax Rate) = Sales Tax

The retail price is the price that you are charging your customer. If we don't know your retail price, then we use our Printful price (except in California).

We collect tax based on your retail price because it is the law. Sales tax must be calculated on the final selling price, not the Printful price we charge you.

We apply sales tax rate based on zip codes. The tax rate is different in each state, and within each state, it varies by county, city, and district.

You can calculate your tax rate be entering your customer's zip code on TaxJar's Sales Tax Calculator.

Shipping

Some states don't include shipping in their sales tax calculation. This means their formula looks like this:

(Retail Price * Tax Rate) = Sales Tax

These states are:

  • Alabama
  • California
  • Colorado
  • Illinois
  • Iowa
  • Louisiana
  • Maryland
  • Massachusetts
  • Nevada
  • Utah
  • Wyoming

Was this helpful? Yes No

If you still have questions, contact us here

Ready to try Printful ?