Help with variable Sales Tax

[mrlu-7991]

Does anyone know what the HIGHEST sales tax is in the nation? I am trying to price items accordingly now as I  took a loss due to a high sales tax rate. I am thinking the only way to prevent that is to either

1-Not ship to that state 

2- Price items higher but run the risk of losing sales

How do you guys deal with this issue? Any advice/suggestions would be appreciated

**DISCLAIMER This is NOT the ID I am selling the items from***

[johnrj1226]

You DO NOT  incur the  cost of  sales tax.  The buyer pays it - some states (5)  have zero  sales tax.  You, the seller, just  pays  the eBays  fee on the percentage (most commonly 12.9%*) on the the total amount sales tax, shipping and item price.

*can vary depending on the  category  the items sold is in.

[johnrj1226]

Four states — Delaware, Montana, New Hampshire and Oregon — have no statewide sales tax, or local sales taxes, either. Alaska has no statewide sales tax, but it allows cities and towns to levy sales taxes

[silverstatetreasureboxes]

To answer your Q: 8.38% in Clark County Nevada and we are ranking 7 overall.

[johnrj1226]

Here you go -  a little  scrolling needed - there are a lot of counties in these states

https://en.wikipedia.org/wiki/File:Sales_tax_by_county.webp

[m60driver]

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@mrlu-7991 wrote:

Does anyone know what the HIGHEST sales tax is in the nation? I am trying to price items accordingly now as I  took a loss due to a high sales tax rate. I am thinking the only way to prevent that is to either

1-Not ship to that state 

2- Price items higher but run the risk of losing sales

How do you guys deal with this issue? Any advice/suggestions would be appreciated

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If you lost money on a sale because of the final value fee placed on the sales tax that the buyer paid then your gross profit margins are way, way too low. 

[jameshen1]

What m60drvr just said.  Way, way too low.

[lacemaker3]

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@mrlu-7991 wrote:

Does anyone know what the HIGHEST sales tax is in the nation? I am trying to price items accordingly now as I  took a loss due to a high sales tax rate. I am thinking the only way to prevent that is to either

1-Not ship to that state 

2- Price items higher but run the risk of losing sales

How do you guys deal with this issue? Any advice/suggestions would be appreciated

**DISCLAIMER This is NOT the ID I am selling the items from***

---

@mrlu-7991,

The highest tax rate in the USA at the moment is 11.5%, charged in some municipalities in Arkansas and Oklahoma.

https://www.avalara.com/taxrates/en/state-rates.html

You can't restrict shipping to any state in the contiguous 48 states.

Most sellers just regard the sales tax as a pass-through, which it is. With the default 12.9% eBay fees, and the maximum 11.5% sales tax, the additional eBay fees paid because of the sales tax amount to 12.9% x 11.5% = 1.48% of the purchase price plus shipping.

So, you could increase your prices by 1.5% - 2% to account for this.

[soh.maryl]

Depending on the state, eBay began, by law, collecting state sales tax from buyers based on their delivery addresses several years ago.  Some states enacted the legislation for this early in the game, with others joining in at various times over the last few years.  There are still 4-5 that do not have a state sales tax at all.  So, if you did any selling at all in the last perhaps 2-3 years, then your buyers probably did pay state sales tax and you, the seller, were charged the FVF on those buyers' total purchases.