Amazon Seller Tax Calculator

🇺🇸 Free Tool · 2026 Tax Year
Amazon Seller Tax Calculator: estimate your 2026 FBA & FBM tax bill
Your 1099-K shows gross sales — your tax bill is built on profit. Enter sales, COGS, and Amazon fees to see self-employment tax and federal income tax at real 2026 IRS rates.
Net profit from Amazon selling–
Self-employment tax (15.3%)–
Federal income tax on your Amazon profit–

How Amazon sellers are taxed

Whether you run FBA, FBM, private label, wholesale, or arbitrage, the IRS sees a business: net profit flows to your Schedule C and pays 15.3% self-employment tax (Social Security capped at $184,500 in 2026) plus federal income tax at your bracket — softened by the standard deduction and the permanent 20% QBI deduction. Amazon files a 1099-K once you cross $20,000 and 200 transactions (the threshold the 2025 tax law restored), but profit is taxable from the first sale regardless.

The classic Amazon-seller mistake: filing from the 1099-K number, which includes shipping and sales tax collected and comes before Amazon's fees. Referral fees alone run ~15%; add FBA fulfilment, storage, and PPC ads and it's common for 40–60% of gross to be deductible before you even count product cost.

COGS: the deduction that makes or breaks resellers

Cost of goods sold is what you paid for the inventory you actually sold this year — including freight-in, duties/tariffs, and prep-centre costs. Unsold inventory sitting in FBA is not deductible yet, which is why year-end inventory counts matter. Beyond COGS and Amazon fees, deduct seller software, virtual assistants, product photography, samples, sourcing mileage, a qualifying home office, and business-use share of your phone and internet.

Frequently asked questions

Does Amazon report my sales to the IRS?

Yes — via 1099-K once you exceed $20,000 gross and 200 transactions. The IRS matches it against your return, so report gross sales and deduct down to profit rather than reporting a lower number.

Does Amazon handle sales tax for sellers?

For US marketplace sales, yes — Amazon collects and remits state sales tax under marketplace-facilitator laws. Income tax on profit is entirely yours.

Can I deduct unsold FBA inventory?

Not until it sells (or is genuinely disposed of/written off). COGS only covers inventory sold during the year — do a year-end count of what's in FBA and at home.

Should an Amazon seller form an LLC or S-corp?

An LLC changes nothing on taxes but adds protection. Once profit consistently clears roughly $60,000, an S-corp election can save thousands in self-employment tax — try our S-corp calculator.

Do Amazon sellers pay quarterly taxes?

Yes — once you'd owe $1,000+ for the year. 2026 deadlines: April 15, June 15, September 15, January 15 (2027). Use our quarterly calculator.

Built for e-commerce sellers

FincSol Accountancy specialises in Amazon and e-commerce accounting — settlement reconciliation, real COGS tracking, quarterlies, and year-end filing. Dedicated personal accountant. No long-term contract.

Message us on WhatsApp →

Estimates use 2026 federal rates (SE tax 15.3%, $184,500 wage base, $16,100/$32,200 standard deduction, 20% QBI) and assume sole-proprietor/LLC status. State income tax excluded. Guidance only — see irs.gov. Related: eBay calculator · e-commerce accounting services.