Sold goods aren’t taxable as income if you are selling a used personal item for less than the original value. If you flip it or sell it for more than the original cost, you have to pay taxes on the surplus as capital gains.

Do I charge sales tax when selling out of state?

You would charge the destination state’s rate, in addition to any local or county sales taxes for the address to which you’re shipping. You would not additionally collect your own state’s sales tax on products you’re shipping out of state.

Do you have to pay sales tax when you sell out of State?

You generally collect your state’s sales tax on orders placed from within or delivered to your own state. In most states, you should not collect local sales tax on out-of-state orders. For example, Massachusetts charges sales tax when the purchaser. picks up the item in Massachusetts. has the item delivered to a Massachusetts address.

How are sales taxes collected in different states?

Sales taxes are, frankly, a mess. There are many taxing localities involved, each with its own tax rate and list of taxable products and services. If you have a tax presence (called a tax nexus) in different states, you may have to collect different taxes on different items.

How can I find out what sales tax I have to pay?

Each state usually has an online database with current sales tax rates. Most e-commerce platforms look up the customer’s address automatically and charge the applicable tax rate. You’re only responsible for selecting the jurisdictions for which you must collect the taxes.

When do you charge another state’s sales tax?

You must collect all applicable taxes, and you should generally collect the sales tax rate that applies at the location of the sale. California follows this rule. 3  4  When Do You Charge Another State’s Sales Tax? You typically only collect sales tax for another state when you have a physical presence in that state.