Core formulas
The formulas to keep straight
Etsy transaction fee = 6.5% x (listing price + shipping charged + gift wrap)$25 item + $5 shipping transaction fee = $30 x 6.5% = $1.95US standard Etsy fees = $0.20 listing + transaction fee + payment processingPayment processing is separate = 3% x total sale amount + $0.25 for US Etsy PaymentsProfit = order revenue - listing fee - transaction fee - processing fee - other seller costsWhat is the Etsy transaction fee in 2026?
The Etsy transaction fee is 6.5% of the listing price plus shipping charged and gift wrap as of July 3, 2026. It is charged when a sale happens through Etsy.com.
For US sellers, Etsy says the transaction fee does not apply to sales tax. For sellers outside the US, Etsy says the transaction fee applies to the listing price, which should include applicable taxes the seller is responsible for, plus shipping and gift wrap.
This guide checked Etsy's Fees & Payments Policy on July 3, 2026. Etsy lists that policy as last updated February 13, 2026.
Etsy transaction fee rules
This table covers the 6.5% transaction fee only.
| Fee base | Included in 6.5% transaction fee? | Seller note |
|---|---|---|
| Listing price | Yes | Core item price |
| Shipping charged to buyer | Yes | Buyer-paid shipping is part of the fee base |
| Gift wrap charged to buyer | Yes | Gift wrap is included |
| Optional personalization fee | Yes | Etsy says added personalization is part of display price |
| US sales tax | No | Etsy says US transaction fee does not apply to sales tax |
| Shipping label cost | No | This is a seller expense, not buyer-paid revenue |
| Etsy Ads spend | No | Advertising spend is a separate charge |
How much is the Etsy transaction fee on common orders?
The transaction fee is easy to calculate once the fee base is right. Multiply item price plus shipping charged and gift wrap by 6.5%. A $30 fee base has a $1.95 transaction fee.
The mistake is using item price only when the buyer also paid shipping. A $25 item with $5 shipping is not a $25 transaction-fee base. It is a $30 base.
A $50 item with $8 shipping charged has a $3.77 Etsy transaction fee as of July 3, 2026.
Etsy transaction fee examples
Transaction fee only. Listing, processing, ads, and labels are separate.
| Item price | Shipping charged | Gift wrap | Transaction fee base | 6.5% transaction fee |
|---|---|---|---|---|
| $10 | $0 | $0 | $10 | $0.65 |
| $25 | $5 | $0 | $30 | $1.95 |
| $50 | $8 | $0 | $58 | $3.77 |
| $100 | $0 | $0 | $100 | $6.50 |
| $100 | $10 | $5 | $115 | $7.48 |
Is the Etsy transaction fee the same as payment processing?
No. The Etsy transaction fee is the marketplace fee. Payment processing is separate. For a US Etsy Payments seller, payment processing is 3% + $0.25 on the total sale amount.
A $100 US sale with no shipping has a $6.50 transaction fee and a $3.25 payment processing fee. The seller also pays the $0.20 listing fee, so standard Etsy fees total $9.95.
If a seller says Etsy took about 10% from a standard US sale, they are usually combining listing, transaction, and processing fees.
$100 US Etsy sale fee split
No Offsite Ads, no Etsy Ads, no shipping charged.
| Fee | Amount | Why it is different |
|---|---|---|
| Listing fee | $0.20 | Flat listing or renewal fee |
| Transaction fee | $6.50 | 6.5% of $100 |
| Payment processing | $3.25 | 3% of $100 + $0.25 |
| Total standard Etsy fees | $9.95 | All three lines combined |
Does the Etsy transaction fee apply to shipping?
Yes. Etsy's transaction fee applies to shipping charged to the buyer. This is one of the most common Etsy fee surprises because sellers often think shipping is pass-through money.
If a buyer pays $25 for an item and $5 for shipping, the transaction fee is $1.95. If the seller only uses the $25 item price, they will undercount the transaction fee by $0.33.
Free shipping does not remove the shipping cost. It moves the label cost into the product price or the seller's margin.
- Use item price plus shipping charged for the transaction-fee base.
- Subtract the shipping label cost later as a seller expense.
- Compare buyer-paid shipping and free shipping with the same buyer-paid total.
- Check Offsite Ads separately when the order is attributed.
How should sellers price around the transaction fee?
The clean way to price around the transaction fee is to include it in the denominator of the pricing formula. For a US seller using standard fees, the combined percentage fee before Offsite Ads is 9.5%, made of 6.5% transaction and 3% processing.
That does not mean every product should simply be marked up by 9.5%. Fixed fees, product cost, labor, packaging, shipping label cost, and target profit also need to be included.
A product with $30 in seller costs and a 35% target margin needs $54.86 before Offsite Ads under the standard US Etsy fee stack.
Transaction-fee-aware price example
US seller, $30 seller costs, 35% target margin, no Offsite Ads.
| Input | Amount | Why it matters |
|---|---|---|
| Seller costs | $30.00 | Materials, labor, packaging, and shipping label |
| Fixed Etsy fees | $0.45 | $0.20 listing + $0.25 processing fixed fee |
| Percentage fees | 9.5% | 6.5% transaction + 3% processing |
| Target margin | 35% | Profit share of selling price |
| Required price | $54.86 | Covers costs, fees, and margin |
Decision table
Etsy transaction fee decision table
Use this to avoid mixing fee types.
| Question | Answer | Best move |
|---|---|---|
| Is item price included? | Yes | Use listing price in the base |
| Is shipping charged included? | Yes | Add buyer-paid shipping |
| Is gift wrap included? | Yes | Add buyer-paid gift wrap |
| Is US sales tax included? | No, per Etsy policy | Keep US sales tax separate |
| Is payment processing included? | No | Add processing as a separate fee |
| Is shipping label cost included? | No | Subtract it as a seller expense |
Worked examples
Examples you can compare against your own numbers
Example 1: $25 item with $5 shipping
Calculator inputs: itemPrice=25, shippingCharged=5, transactionFee=6.5.
| Item price | $25.00 | Listing price |
|---|---|---|
| Shipping charged | $5.00 | Buyer-paid shipping |
| Transaction fee base | $30.00 | $25 + $5 |
| Transaction fee | $1.95 | $30 x 6.5% |
Takeaway: The shipping charge adds $0.33 to the transaction fee in this example.
Open the $25 plus shipping fee exampleExample 2: $100 standard US sale
Calculator inputs: itemPrice=100, shippingCharged=0, listingFee=0.20, transactionFee=6.5, processingFee=3, processingFixed=0.25.
| Transaction fee | $6.50 | $100 x 6.5% |
|---|---|---|
| Payment processing | $3.25 | $100 x 3% + $0.25 |
| Listing fee | $0.20 | Flat fee |
| Total standard Etsy fees | $9.95 | Before product cost, shipping, labor, and ads |
Takeaway: The transaction fee is the largest standard fee line on a $100 US Etsy sale.
Open the $100 transaction fee exampleExample 3: $115 order with gift wrap
A $100 item, $10 shipping charged, and $5 gift wrap creates a $115 transaction-fee base.
| Listing price | $100.00 | Item price |
|---|---|---|
| Shipping charged | $10.00 | Included in transaction-fee base |
| Gift wrap | $5.00 | Included in transaction-fee base |
| Transaction fee | $7.48 | $115 x 6.5% |
Takeaway: Gift wrap and shipping charged are not outside the transaction-fee base.
Action checklist
Before you use this number in the real business
- 1Start with listing price.
- 2Add shipping charged to the buyer.
- 3Add gift wrap and personalization charges.
- 4Multiply the fee base by 6.5%.
- 5Add listing and payment processing fees separately.
- 6Subtract shipping label cost and product costs after fee math.
Common mistakes
Mistakes that make the answer look better than reality
FAQs
Questions people ask before making the decision
What is the Etsy transaction fee in 2026?
As of July 3, 2026, Etsy's transaction fee is 6.5% of the listing price plus shipping charged and gift wrap. It is charged when a sale happens through Etsy.com.
Does the Etsy transaction fee apply to shipping?
Yes. Etsy's 6.5% transaction fee applies to shipping charged to the buyer. A $25 item with $5 shipping charged has a $1.95 transaction fee.
Is Etsy payment processing the same as the transaction fee?
No. The transaction fee is 6.5%. US Etsy Payments processing is a separate 3% + $0.25 fee on the sale amount.
Does the Etsy transaction fee apply to sales tax?
For US sellers, Etsy says the transaction fee does not apply to sales tax. For sellers outside the US, Etsy says the fee applies to the listing price that includes applicable taxes the seller is responsible for.
Does the Etsy transaction fee apply to gift wrap?
Yes. Etsy says the transaction fee applies to the listing price plus shipping and gift wrapping. Gift wrap charged to the buyer should be included in the transaction-fee base.
How much is the Etsy transaction fee on $100?
The Etsy transaction fee on a $100 sale with no shipping or gift wrap is $6.50. Standard US Etsy fees also include a $0.20 listing fee and $3.25 payment processing.
How do I reduce the Etsy transaction fee?
You cannot remove the 6.5% fee on Etsy.com sales. The practical move is to price with the fee included and avoid undercounting shipping, gift wrap, personalization, and seller costs.
Sources and notes
Where the assumptions come from
Official Etsy source for the 6.5% transaction fee, shipping, gift wrap, personalization, and tax treatment.
Official Etsy source for payment processing fees, which are separate from the transaction fee.
Calculator used for transaction-fee examples and full standard Etsy fee examples.