One Etsy order: what the form counts and what you keep
Type one order. See the amount that counts toward box 1a next to the fees that come out before the money reaches you.
The rates used, with Etsy's wording
| Fee | Worked out as | Etsy Help |
|---|---|---|
| Listing fee | $0.20 | "The listing fee is a flat rate charge of $0.20 USD per listing." |
| Transaction fee | 6.5% of item price plus shipping | "Etsy charges 6.5% of the total order amount in your designated listing currency." and "This fee applies to shipping and gift wrapping (if you charge your customers for those)." |
| Payment processing fee | 3% of item, shipping and tax, plus $0.25 | The fee table lists the United States at "3% + 0.25 USD". "The fees are taken from the item's total sale price, including its shipping fees, and any applicable sales tax." |
| Offsite Ads fee | 15% or 12% of item price plus shipping, at most $100 | "If you made less than $10,000 on Etsy in the past 365 days, you'll be charged a 15% fee on the order total." "The Offsite Ad fee will never exceed $100 for an order, regardless of the order total." |
Rates read on 10 November 2026, for a seller whose bank account is in the United States. Etsy says processing fees "vary according to the location of your bank account", and sellers in some countries also pay a regulatory operating fee. Etsy's page says the Offsite Ads fee is charged "on the order total" without defining it there; this page uses item price plus shipping. Gift wrap is left out.
Why the form counts more than you keep
Etsy's list of what gross sales "may include" has sales, shipping, refunds and card processing fees on it, and its help page says: "Taxes collected by Etsy from your buyers are not reported on the 1099-K form we issue." So the calculator counts item price plus shipping toward the gross and leaves the collected tax out.
The fees page describes the tax the same way: buyer-paid taxes "are included in the total amount paid by the buyer and then subtracted back out, they are not deducted from your listing price."
For a whole year instead of one order, use the gross to deposits calculator or drop your statements into the tie-out tool.
Sources, read 10 November 2026: Etsy Help, What are the Fees and Taxes for Selling on Etsy?; Etsy Help, What are Payment Processing Fees for Selling on Etsy?; Etsy Help, Etsy Fee Basics; Etsy Help, What Do I Need to Know About My 1099-K Tax Form?.
Check your own form. Drop your statement CSVs and type the box amounts. Read in your browser, nothing uploaded.
Open the tie-out toolQuestions
Are Etsy fees taken off the 1099-K?
No. The IRS instructions define the gross amount without any adjustment for fees, and Etsy says the form reports gross sales without subtracting expenses.
What are the Etsy fees on one US order?
From Etsy Help as read on 10 November 2026: a $0.20 listing fee, a transaction fee of 6.5% of the order amount including shipping, and for a US bank account a payment processing fee of 3% plus $0.25.