Taxes / State tax rules / Utah
Selling on eBay, Poshmark or Etsy from Utah: sales tax and 1099-K rules
On a marketplace sale delivered to Utah, a marketplace facilitator with more than $100,000 of Utah sales in the previous or current year collects the tax at the buyer's location rate, sellers cannot opt out of that, and a marketplace seller needs no Utah license for facilitated sales unless it has Utah nexus. Utah sets no separate 1099-K rule: the Tax Commission's withholding guide says a payer not required to withhold Utah tax on a Form 1099 is not required to submit it, so the federal 1099-K test is the one that applies.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Utah in short
- General sales tax:
- Yes, 4.85% state rate
- Marketplace facilitator law:
- Yes: Utah Code § 59-12-107.6, since Oct 1, 2019
- When a marketplace must collect:
- in the previous or current calendar year, sales on its own behalf or facilitated for marketplace sellers that exceed $100,000, totaling its own and facilitated sales separately
- Form 1099-K:
- No separate state threshold
Who collects the tax on a marketplace sale
A facilitator over the threshold is considered the seller of the goods and services it facilitates and collects, reports and pays Utah sales tax on them at the buyer's location rate, regardless of whether the marketplace seller would owe on its own. A facilitator without physical presence starts no later than the first day of the calendar quarter at least 60 days after it passes the threshold.
If you sell only through marketplaces
Marketplace sellers do not need a Utah license for facilitated sales unless they have Utah nexus, the Tax Commission says. A licensed seller files returns but does not report marketplace sales, and Utah Code § 59-12-107.6 says a seller may not collect tax on a sale the facilitator must collect on.
Registration, resale certificates and what changes when you also sell direct have their own page: Utah: seller's permit and resale certificate rules.
The law: Utah Code § 59-12-107.6, effective .
"Marketplace sellers do not need to have a Utah sales tax license for facilitated sales unless they have Utah nexus."
"A marketplace seller with a Utah sales tax license must file sales tax returns but does not report sales made through a marketplace."
"Sellers cannot opt-out of having a facilitator collect tax for their sales."
Sources: Marketplace Facilitators and Sellers; Publication 71, Sales Tax Information for Marketplace Sellers and Marketplace Facilitators (Rev. 6/25); Utah Code § 59-12-107.6 (effective 7/1/2025).
Utah's sales tax
Publication 25 lists a 4.85% state sales and use tax in Utah's combined rate, plus a 1.00% local option and a 0.25% county option, with further local taxes in some places. Grocery food carries a 1.75% state rate.
"A facilitator must collect sales tax for products delivered to Utah locations at the tax rate of the buyer’s location."
Sources: Publication 25, Sales and Use Tax General Information (Rev. 9/26).
Form 1099-K: Utah and the federal test
Publication 14, Withholding Tax Guide (Rev. 4/26), says a payer not required to withhold Utah tax on a Form 1099 is not required to submit the 1099 form or report it on Utah withholding or reconciliation forms. We found no separate Utah 1099-K threshold.
"if you are not required to withhold Utah tax on a form 1099, you are not required to submit the 1099 form"
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Worked examples
Tax on a $40 marketplace sale to Salt Lake City
At the 4.85% state rate, a $40.00 taxable item carries $1.94 of state tax. With the 1.00% local option and 0.25% county option from Publication 25's combined-rate chart, the total is at least 6.10%, or $2.44, before any further local taxes. Publication 71 lists delivery charges as not subject to tax on facilitated sales.
When a newly qualifying facilitator starts
Publication 71's example: a facilitator first makes more than $100,000 of Utah sales on March 8. Sixty days later is May 7, in the April to June quarter, so it must start collecting no later than July 1.
A seller with marketplace and direct sales
A seller makes $140,000 of Utah sales through facilitators and $30,000 through its own website in a year. Under § 59-12-107.6, its own collection duty turns on the $30,000 of sales other than through a facilitator, which is not over $100,000; the facilitators collect on the $140,000.
Edge cases and details
- Publication 71 lists delivery charges and the payment processing and marketplace fees a facilitator charges a seller as not subject to tax, but fees a marketplace charges buyers for using it as taxable.
- The current text of Utah Code § 59-12-107.6, effective July 1, 2025, states the facilitator test as more than $100,000 of sales, with no transaction count; Publication 71's example still refers to meeting either threshold.
- Since July 1, 2020, a person that facilitates sales for restaurants is not a marketplace facilitator, the Tax Commission says.
- A buyer overcharged by a facilitator seeks the refund from the facilitator, and the Tax Commission may audit the facilitator but not the marketplace seller for marketplace sales.
- Facilitators also collect Utah's other sales-related taxes on facilitated sales, such as transient room and motor vehicle rental taxes, according to Publication 71.
What to do
- If your Utah sales outside marketplaces could pass $100,000 in a calendar year, or you have other Utah nexus, read Publication 71 and check with a tax professional about a license.
- If you hold a Utah license, leave marketplace sales off your returns as the Tax Commission describes, and keep marketplace reports to show them.
- Do not add Utah tax yourself on marketplace orders; the statute says a seller may not collect tax the facilitator is required to collect.
Common questions
Do I need a Utah sales tax license if I only sell on marketplaces?
Not for facilitated sales unless you have Utah nexus, the Tax Commission says. A licensed seller still files returns but does not report marketplace sales.
Can I collect Utah tax myself instead of the marketplace?
No. Publication 71 says sellers cannot opt out of having a facilitator collect, and § 59-12-107.6 says a seller may not collect tax on a sale the facilitator must collect on.
When did Utah marketplace facilitators start collecting?
October 1, 2019, for facilitators with Utah nexus for their facilitated sales.
Does Utah require 1099-K copies?
Publication 14 says a payer not required to withhold Utah tax on a Form 1099 is not required to submit it, and we found no separate Utah 1099-K threshold.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Utah: seller's permit and resale certificate rules
- Texas: sales tax and 1099-K rules
- Vermont: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes Utah's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Utah State Tax Commission: Marketplace Facilitators and Sellers; read . October 1, 2019 start, seller licensing and reporting, restaurants exclusion, refunds.
- Utah State Tax Commission: Publication 71, Sales Tax Information for Marketplace Sellers and Marketplace Facilitators (Rev. 6/25); read . No opt-out, quarter start example, taxable and nontaxable charges, sourcing.
- Utah State Legislature: Utah Code § 59-12-107.6 (effective 7/1/2025), dated ; read . $100,000 test, seller may not collect, seller's own threshold, audits.
- Utah State Tax Commission: Publication 25, Sales and Use Tax General Information (Rev. 9/26); read . 4.85% state rate, local and county options, grocery rate.
- Utah State Tax Commission: Publication 14, Withholding Tax Guide (Rev. 4/26); read . No 1099 submission without Utah withholding.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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