Texas sellers to face new tax on marketplace commission fees from October 1
Online sellers face up to 8.25% tax on platform commissions, adding to rising costs and squeezing margins
Online sellers in Texas will see their costs rise from October 1, 2025, as the state begins imposing sales tax on the commission fees charged by marketplaces such as eBay, Amazon, Etsy and Poshmark.
According to tax officials, these commission fees are now classified as “data processing services.” This means 80 percent of the fee charged by marketplaces will be taxable, while 20 percent is exempt. The tax will be applied at the state rate of 6.25 percent, with additional local rates pushing the total up to 8.25 percent in many areas.
Also Read: Prime Big Deal Days returns on October 7-8
For sellers, this means that not only will they continue paying commission fees on the sale price, shipping, and even on sales tax collected from buyers, but they will also face a new layer of taxation on those same commission fees. The platforms will automatically collect the tax and deduct it from sellers’ payouts.
Industry experts warn that the rule could significantly reduce net earnings for Texas-based sellers, particularly small businesses and first-time online entrepreneurs. Many may be forced to raise prices or absorb the additional cost, tightening already thin profit margins.
While the move is aimed at increasing state revenue, it may create competitive disadvantages for Texas sellers compared to those operating from states without similar rules. Analysts suggest that other states could follow Texas’ lead, potentially expanding the burden on online sellers nationwide.
The new policy comes into effect on October 1, leaving sellers just days to prepare for higher deductions from their marketplace earnings.
Also Read: Amazon reminds sellers of 2025 holiday peak fulfillment fees
Disclaimer:
eBay, Amazon, Etsy and Poshmark are registered trademark of the respective companies.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
By ChannelMAX Staff Writer
Sept-2025#20
Online sellers in Texas will see their costs rise from October 1, 2025, as the state begins imposing sales tax on the commission fees charged by marketplaces such as eBay, Amazon, Etsy and Poshmark.
According to tax officials, these commission fees are now classified as “data processing services.” This means 80 percent of the fee charged by marketplaces will be taxable, while 20 percent is exempt. The tax will be applied at the state rate of 6.25 percent, with additional local rates pushing the total up to 8.25 percent in many areas.
Also Read: Prime Big Deal Days returns on October 7-8
For sellers, this means that not only will they continue paying commission fees on the sale price, shipping, and even on sales tax collected from buyers, but they will also face a new layer of taxation on those same commission fees. The platforms will automatically collect the tax and deduct it from sellers’ payouts.
Industry experts warn that the rule could significantly reduce net earnings for Texas-based sellers, particularly small businesses and first-time online entrepreneurs. Many may be forced to raise prices or absorb the additional cost, tightening already thin profit margins.
While the move is aimed at increasing state revenue, it may create competitive disadvantages for Texas sellers compared to those operating from states without similar rules. Analysts suggest that other states could follow Texas’ lead, potentially expanding the burden on online sellers nationwide.
The new policy comes into effect on October 1, leaving sellers just days to prepare for higher deductions from their marketplace earnings.
Also Read: Amazon reminds sellers of 2025 holiday peak fulfillment fees
Disclaimer:
eBay, Amazon, Etsy and Poshmark are registered trademark of the respective companies.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.