Texas Sellers Still Pay Tax on Amazon, eBay, and Etsy Fees: What the September 30 Order Changes, What It Doesn’t Yet, and How to Comment (2026)
Where things stand: On September 30, 2026, Texas Comptroller Don Huffines ordered his office to propose removing marketplace and platform fees from the state’s tax on data processing. That would cover Amazon, eBay, Etsy, DoorDash, and similar fees. It’s a proposal, not a repeal. The tax that started October 1, 2025 still applies until a final rule is adopted. That means up to 6.6% of the fees you pay, since 80% of the fee is taxed at up to 8.25%. No refund has been announced. Next comes publication in the Texas Register, then a 30-day public comment window.
If you sell on eBay or Etsy from Texas, you’ve been paying a small tax on your own seller fees for a year now. Many sellers only noticed when the line showed up on a statement.
Then on September 30, headlines said the tax was being “abolished.” That’s half right.
The order starts a rule change. It doesn’t stop the tax today, and it doesn’t put money back in your account. Here’s what you’re paying now, what changes if the rule passes, and the one thing you can do in the meantime.
Jump to a Section
- Do Texas sellers still pay tax on Amazon, eBay, and Etsy fees?
- What did the September 30 executive order actually do?
- How much is the fee tax costing you?
- Will Texas sellers get a refund of the fee tax?
- How do I submit a comment on the Texas rule change?
- What to Pull From Your Seller Accounts This Week
- Tips
- Warnings
- FAQ
- Sources
Do Texas sellers still pay tax on Amazon, eBay, and Etsy fees?
Yes. As of October 10, 2026, Texas still taxes marketplace fees paid by sellers as data processing services under Rule 3.330, which took effect October 1, 2025, and the tax stays in place until the comptroller formally adopts an amended rule, as Avalara’s October 2026 analysis notes.
The background is short. In 2025, the prior comptroller reinterpreted the rule so that the work platforms do for sellers counts as taxable data processing. That covers storing listings and photos, keeping transaction records, and running analytics. Platforms then started adding sales tax to the fees they charge Texas sellers.
Critics called it a double tax. Your buyer already pays sales tax on the item, and then you pay tax on the commission for selling it.
Etsy and Poshmark notified sellers when it started, according to High Plains Public Radio (HPPR). eBay hadn’t sent sellers a notice at the time of that report.
What did the September 30 executive order actually do?
Comptroller Don Huffines’ September 30, 2026 executive order directs his office to propose an amendment to Rule 3.330 that removes marketplace and platform fees from taxable data processing services, and the proposal must be published in the Texas Register with a 30-day comment period before it can take effect, per the Texas Comptroller’s September 30 press release.
The fees named in the release cover far more than online stores:
- Seller fees on marketplaces like Amazon, eBay, and Etsy
- Restaurant fees for delivery through DoorDash, Grubhub, and Uber Eats
- Short-term lodging listing fees
- Ride-hailing and other transportation services
- Vehicle rental or sharing
- Pet care and pet-sitting
- Household, personal, and errand-running services
So if you list a spare room, walk dogs through an app, or run errands for a platform, this touches you too.
When I checked the press release for an effective date, I found there isn’t one. It only lays out the process: file with the Texas Secretary of State, publish in the Texas Register, take comments for 30 days, then adopt.
Some law firms also flagged a wrinkle. A comptroller changing tax scope by rule reopens an old question about whether that’s the Legislature’s job. That’s mostly a fight for lawyers, but it’s one reason not to treat the change as certain.
How much is the fee tax costing you?
Texas taxes 80% of a data processing charge, and the combined state and local sales tax rate tops out at 8.25%, so the marketplace fee tax costs Texas sellers at most about 6.6% of the fees they pay, based on the rates published by the Texas Comptroller’s sales and use tax page.
The state rate is 6.25%, and local jurisdictions can add up to 2%. Twenty percent of a data processing charge is exempt, which is where the 80% comes from.
| Platform fees you paid in a year | Tax at 6.25% state only (5.0% of fees) | Tax at 8.25% max combined (6.6% of fees) |
|---|---|---|
| $500 | $25 | $33 |
| $2,000 | $100 | $132 |
| $5,000 | $250 | $330 |
| $10,000 | $500 | $660 |
Own calculation: fees × 80% taxable × tax rate. Your actual local rate depends on your location. Texas Comptroller rates as of October 2026.
Put another way, a part-time Etsy seller with $2,000 in yearly fees is out roughly $100 to $132. A full-time reseller paying $10,000 in eBay fees could be paying up to $660.
That lines up with what sellers reported. One Texas reseller told HPPR he expected about $450 extra on roughly $60,000 in sales.
Annoying, not ruinous. But it’s money you’d keep if the rule changes.
Will Texas sellers get a refund of the fee tax?
No refund has been announced. The Texas Comptroller’s September 30, 2026 press release on removing the marketplace fee tax does not mention refunds, and Avalara’s analysis says the existing tax keeps applying until an amended rule is formally adopted.
When I compared the coverage, I noticed that several seller blogs implied money would come back. Nothing official says so. Rule changes like this one usually apply going forward from the date they’re adopted, unless the rule itself says otherwise.
So plan as if the tax you’ve paid since October 2025 is gone. If the final rule surprises everyone with a refund path, your records will be ready.
How do I submit a comment on the Texas rule change?
Texans can submit comments to the Comptroller’s office during the 30-day public comment period that starts when the proposed Rule 3.330 amendment is published in the Texas Register, which had not been reported as published as of October 10, 2026.
- Watch the Texas Register, published weekly by the Secretary of State, for a proposed amendment to 34 TAC §3.330.
- Read the notice. It lists exactly where and how to send comments, and the deadline.
- Keep it short and specific. Say what you sell, which platform, and roughly what the tax costs you per year. One real number beats three paragraphs of opinion.
- Mention any fee type you think is left out. The proposal’s exact wording decides what’s covered.
- Send it before day 30. Late comments don’t count.
Most people skip this step and assume someone else will comment. Texas rule adoption notices usually summarize the comments received, and a specific cost number is easier to cite than a general complaint.
What to Pull From Your Seller Accounts This Week
Whatever happens, you want a clean record of the tax you’ve paid on fees. Download it now while it’s easy to find.
- eBay: monthly statements or invoices from Seller Hub, October 2025 onward.
- Etsy: monthly statements from your Shop Manager payment account.
- Amazon: seller fee invoices and tax documents from Seller Central reports.
- Delivery, rental, and service apps: any monthly fee summary that shows a tax line.
Total the tax lines in a spreadsheet by month. Two minutes per platform, once.
That same file helps at tax time. Platform fees are typically a business expense for sellers. Our guides on the 2026 1099-K threshold and comparing seller fees across platforms cover the rest of the picture.
Tips
- Set a reminder to check the Texas Register once a week until the proposal appears.
- If you sell on several platforms, compare which ones actually add the tax line. Fee structures differ.
- Keep your fee statements for at least as long as your tax records. It’s the only proof of what you paid.
- Ask your tax preparer how they want fee tax recorded so it lands in the right expense line.
Warnings
- Don’t stop paying or dispute platform charges because of headlines. The tax still applies until the amended rule is adopted.
- Ignore posts promising refunds. None has been announced.
- The final rule could differ from the September 30 announcement. Read the published version.
- This is general information, not tax or legal advice. Talk to a tax professional about your situation.
FAQ
When will Texas stop taxing marketplace fees?
No date has been set. The proposed amendment to Rule 3.330 must be published in the Texas Register, go through a 30-day public comment period, and then be formally adopted before the tax on marketplace fees stops.
Does the Texas fee tax apply to DoorDash and Uber drivers?
The proposal targets fees platforms charge to businesses and sellers, such as restaurant delivery fees and ride-hailing platform fees. Whether a specific driver or worker pays tax on fees depends on how the platform charges them, so check your own statements.
Do buyers still pay sales tax on items sold to Texans?
Yes. The September 30 order only addresses tax on the fees marketplaces charge sellers. Sales tax that buyers pay on taxable items they purchase is not affected by this proposal.
Sources
- Texas Comptroller — Press release on ending the marketplace fee tax (September 30, 2026)
- Texas Comptroller — Sales and use tax rates
- Avalara — Texas Comptroller ends data processing tax on marketplace fees (October 2026)
🔗 Related guides
By Jordan Lee. Fact-checked against the Texas Comptroller’s September 30, 2026 press release, published state tax rates, and October 2026 tax analysis. Not tax or legal advice.
