Amazon sellers and FBA merchants are typically treated as self-employed business owners from a tax perspective. This means that their taxes aren’t automatically withheld from sales on the platform. Instead, they're obligated to address these responsibilities themselves, which includes paying the 15.3% self-employment tax that funds Social Security and Medicare, in addition to federal and state income taxes. Part-time resellers, private-label FBA sellers, and full-time e-commerce entrepreneurs can easily and efficiently calculate their self-employment tax burden (excluding state and federal income taxes) with this free self-employment tax calculator courtesy of 1-800Accountant, America's leading virtual accounting firm.
Enter your self-employment and W-2 income to estimate your self-employment tax.
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Estimated Self-Employment Tax
Based on your self-employment and W-2 income.
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Yes, you have to pay taxes on your Amazon sales. If you earn $400 or more in net profit, the IRS considers you self-employed, which increases your tax obligations. You’ll need to pay self-employment tax and possibly income tax on your earnings, among your new responsibilities.
You can typically deduct costs such as shipping, packaging, seller fees, advertising, inventory purchases, software subscriptions (like Helium 10 or Jungle Scout), home office expenses, and internet or phone costs. Your expenses must be ordinary and necessary parts of conducting business as an Amazon seller to qualify.
Input your year-to-date Amazon income to generate a reliable estimate. This Amazon seller tax calculator applies the self-employment tax rate to estimate your liability, showing combined Social Security and Medicare portions up to that point in time.
No, 1-800Accountant's free Amazon seller tax calculator is designed to estimate your self-employment tax only. Amazon collects and remits sales tax on behalf of sellers in most states.
If you earn $600 or more in sales on the platform, Amazon will issue IRS Form 1099-K by January 31 of the following year. This form is used to report payments you got for goods or services from things like credit cards and platforms like Amazon. Even if you don’t receive a 1099 or qualify for that threshold, you’re still responsible for reporting all income to the IRS.
Most self-employed Amazon sellers have tax obligations throughout the year, called quarterly estimated taxes. Taxes should be paid four times per year (April 15, June 15, September 15, and January 15) to ensure compliance and avoid penalties.
Yes, you can deduct several fees and costs related to your Amazon selling business. Amazon FBA fees, fulfillment charges, shipping costs, and storage fees are deductible business expenses. Keep accurate records for each expense category to reduce your taxable income.
A tax calculator is not a replacement for accountants and other tax professionals, but it can help if you handle your own business taxes. While this tool estimates self-employment taxes, accountants help maximize deductions, such as those for product photography and returns, minimize mistakes, track inventory, and develop tax and compliance strategies across multiple states and sales channels.
Your sensitive Amazon sales data is safe when using this calculator. Information entered into the calculator is never stored or shared by 1-800Accountant; it is only used to generate an accurate estimate for your business.