Etsy Fees in 2026: What a Garage Seller Actually Pays per Sale
Etsy is often the first place a garage maker sells online, and it’s easy to underestimate what each sale costs. The fees are small one at a time, but they add up, and they should be built into your prices from the start.
Everything below reflects Etsy’s Fees & Payments Policy (last updated October 5, 2026) and its Payments Policy (last updated July 31, 2026), as of October 2026, for U.S. sellers. Etsy changes fees from time to time, so check the official pages before you set prices.
The fees on every sale
Listing fee: $0.20
Each listing costs $0.20 to publish, whether or not it sells. Listings expire after four months, and with auto-renew on, you pay another $0.20 each time it renews. If a listing has more than one in stock, Etsy charges another $0.20 renewal each time one sells. Editing a listing is free.
Transaction fee: 6.5%
Etsy charges 6.5% of the price you display plus what you charge for shipping and gift wrap. Personalization fees count as part of the price. For U.S. sellers, sales tax isn’t included in this calculation.
Payment processing: 3% + $0.25
If buyers pay through Etsy Payments, U.S. sellers pay 3% plus $0.25 per order. Unlike the transaction fee, this one is calculated on the gross order amount, including shipping and any sales tax.
Fees that only apply sometimes
Offsite Ads: 12% or 15%
Etsy advertises some listings on other sites. If a buyer clicks one of those ads and buys from your shop within 30 days, you pay an Offsite Ads fee on that order:
- 15% for shops that have made less than $10,000 in sales over the past 365 days.
- 12% once your shop passes $10,000 in that period, and that rate applies for the life of the shop.
- The fee is capped at $100 per order and, for U.S. sellers, doesn’t apply to sales tax.
Shops under $10,000 can opt out. Once you pass the threshold, participation is required.
Etsy Ads
Etsy Ads are optional on-site ads. You set a daily budget, and Etsy won’t charge more than that daily maximum.
Other fees to know
- Setup fee: Etsy says new sellers may have to pay a one-time setup fee, shown during shop setup.
- Shipping labels: If you buy labels through Etsy, the cost depends on carrier, weight, size and destination.
- Currency conversion: 2.5% if you list in a currency different from your payment account’s currency. Etsy recommends listing in your own currency.
- Etsy Plus: An optional $10 monthly subscription that includes listing and ad credits.
- Pattern: Etsy’s optional standalone website tool costs $15 a month after a 30-day trial.
A worked example
Say you sell a handmade cutting board for $40 and charge $8 shipping. The buyer pays $3 in sales tax, for an order total of $51.
- Listing fee: $0.20
- Transaction fee: 6.5% of $48 (price plus shipping) = $3.12
- Payment processing: 3% of $51, plus $0.25 = $1.78
- Total Etsy fees: $5.10
If that sale came through an Offsite Ad at the 15% rate, add 15% of $48, or $7.20, for a total of $12.30. That’s why it’s worth knowing whether your shop is opted in.
This example leaves out the cost of the shipping label itself, packaging, materials and your time, all of which also need to be covered by your price.
How to price with fees in mind
- Add up your material, packaging and labor costs per item.
- Estimate Etsy’s fees as a percentage of the order (around 10% of price plus shipping in the example above, before ads).
- Decide whether to price for possible Offsite Ads fees or opt out while you’re under $10,000.
- Make sure shipping charges cover the actual label cost.
- Check that what’s left is a profit you’re happy with, not just a sale.
Getting paid and holds
Etsy lets sellers choose daily, weekly, every-two-weeks or monthly deposits. Daily deposits require a balance of at least $25. Deposits typically arrive within five business days, depending on your bank. Etsy may place a reserve on accounts it considers higher risk, holding back a percentage of sales for a period of time, so keep some cash cushion, especially in your first months.
Keep records for taxes
Download your monthly Etsy statements and keep them with your books. Fees are business expenses, and your sales records support the income you report. Talk with a tax professional about how to handle them on your return.
More on Garage Business Blueprint
- Getting Your Garage Business Ready for Holiday Craft Fairs
- Taxes for a Garage Business: Self-Employment Tax, Quarterly Payments and the Home Office Deduction
