Tax write-offs for Etsy shop owners. Materials, shipping, Etsy fees, home workspace, packaging, and marketing deductions.
Average Deductions
$7,000.00
Estimated Tax Savings
$2,100.00
Commonly Missed
6+ deductions
Raw materials · Crafting supplies · Fabric · Beads · Wood · Paint
USPS / UPS / FedEx postage · Boxes and mailers · Tissue paper and labels · Tape and padding
Listing fees ($0.20/item) · Transaction fees (6.5%) · Etsy Ads · Payment processing fees
Crafting room / studio · Storage shelving · Work table · Lighting
Product photography setup · Lightbox · Social media promotion · Business cards
Sewing machine · Cricut / Silhouette · 3D printer · Hand tools
Use our free tax calculator to estimate how much you could save with proper deduction tracking as a etsy sellers.
Calculate My SavingsYes. All Etsy fees are deductible: listing fees, transaction fees, payment processing fees, Etsy Ads, and Etsy Plus subscriptions.
Yes. Postage, shipping supplies (boxes, mailers, tape, labels), and shipping insurance are all deductible. Even if you offer free shipping, the cost you pay is deductible.
Yes. All Etsy income is taxable. Etsy will send a 1099-K if you earn $600+ in a year. You must report all income even if you don't receive a 1099.
TaxPilot uses AI to automatically find and categorize your deductions. Built specifically for etsy sellers.