How do taxes work when selling at craft fairs?
Most vendors handle both sales tax collection and income tax reporting for their craft fair revenue.
The Narrative
The Empathy
You sign up for your first fair and immediately see confusing terms like "sales tax" and "income tax." You worry you will miss a filing or charge the wrong amount during checkout.
The Education
Sales tax is collected from customers and passed to the state or local jurisdiction. Income tax is based on your net profit after expenses. Many vendors need to register for a sales tax permit, collect tax at the correct rate, and file returns monthly or quarterly. The key habit is tracking gross sales, sales tax collected, and deductible expenses separately so your reporting is accurate.
The Solution
Set up a simple system: record every sale, tag the sales tax amount, and store receipts for expenses. Confirm your local requirements before each season, since rules vary by state and county. With clear records, filing becomes a routine task instead of a stressful scramble.
Stop Guessing. Start Growing.
Stop waiting until the end of the month to see if you made money. Get instant clarity on every sale, even without Wi-Fi.
