When you need a resale certificate, how to use it, and where sales tax still applies.
Updated October 10, 2026
Before you start
When you need a resale certificate, how to use it, and where sales tax still applies.
A resale certificate lets you buy inventory without paying sales tax, so you do not pay tax twice on the same item.
You only need one when buying wholesale or from distributors that ask for it; otherwise, you handle tax on your own sales.
Kit for this
The products this guide uses, with typical US prices.
QuickBooks
Suits you if your reselling has become a business and you want income, costs and a running tax estimate in one place. It pulls in your bank and card transactions and sorts them into Schedule C categories.
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Each step in the order you'll need it.
Marketplaces collect it for you
On eBay, Etsy, Poshmark, Mercari, Depop, Whatnot and TikTok Shop, the platform adds sales tax at checkout where the buyer's state requires it and pays it to that state.
You do not collect or file anything for those orders. The tax shows on the order but is not part of your payout or your income.
When you collect it yourself
Sales on your own website or at local markets are yours to handle. Most states expect a seller's permit and tax collected at the local rate.
Many states also have thresholds for out-of-state sellers based on sales into that state. A small home seller rarely reaches them, but check if your own site starts shipping volume to one state.
Getting a seller's permit
Your state revenue or tax department issues it, often online and often free or for a small fee. Some states call it a sales tax permit or certificate of authority.
Once registered, you file returns on the schedule the state sets, sometimes once a year for small sellers. File even when nothing is due if the state requires it.
Resale certificates for stock
It lets you buy wholesale lots or new stock from a distributor without paying sales tax. You give the seller your certificate and permit number.
It does not apply to things you use yourself, such as shipping supplies or a printer. Using it for those is misuse and states take it seriously.
Thrift stores and estate sales
Most thrift stores and estate sales charge sales tax at the register and many do not accept them. Count the tax as part of your item cost.
Wholesalers and liquidation sellers usually do accept them. Ask before you check out and keep a copy of what you handed over.
Keeping it straight in your books
Record platform sales tax separately from your sales so your income totals are right. Most platform reports show it as its own column.
If you collect tax yourself, keep it in its own account until you file. That money belongs to the state.
Kit for this step
Checklist
Run through it before each one goes out.
- 1List every place you sell, marketplace or not
- 2Confirm each marketplace collects tax in your state
- 3Get a seller's permit if you sell in person or on your own site
- 4Use it only for goods you resell
- 5Count thrift store sales tax as part of item cost
- 6Keep collected tax separate until you file
Setups
Complete kits for one kind of seller, costed and laid out.
Questions
Straight answers to what sellers ask about this.
Do I need to charge sales tax on eBay?
No. eBay collects and remits sales tax under marketplace facilitator laws in states that require it.
Do I need a seller's permit to sell on Poshmark?
For marketplace sales alone, most states do not require one, but some do. Check your state revenue department.
Can I use one at Goodwill?
Many thrift stores do not accept them. Ask at the store, and count the tax in your cost if they charge it.
Is sales tax part of my income?
No. Tax the platform collected is not your income. Leave it out of your sales totals.
Do I charge tax at a flea market?
In most states, yes, with a seller's permit. Some events collect it for vendors. Ask the organizer and your state.
Is this tax advice?
No. Sales tax is state by state. Your state revenue department or a tax professional has the answer for you.