Etsy Transaction Fee: 6.5% Explained (2026)
What Etsy's transaction fee actually charges, the exact formula, and real dollar examples so you know what lands in your pocket per sale.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation
The formula
Transaction fee = (Item price + Shipping charged) × 6.5%
This is Etsy's single largest fee for most sellers. It applies to every sale, in every country, regardless of payment method. There is no way to opt out — it's the cost of listing on Etsy's marketplace.
Transaction fee by sale price
| Item price | Shipping charged | Taxable amount | Transaction fee (6.5%) |
|---|---|---|---|
| $9.99 | $0 | $9.99 | $0.65 |
| $19.99 | $4.99 | $24.98 | $1.62 |
| $29.99 | $5.99 | $35.98 | $2.34 |
| $49.99 | $0 (free shipping) | $49.99 | $3.25 |
| $74.99 | $7.99 | $82.98 | $5.39 |
| $99.99 | $8.99 | $108.98 | $7.08 |
Source: etsy.com/legal/fees · Verified July 2026
Rate history
Etsy raised the transaction fee from 5% to 6.5% on April 11, 2022 — a 30% relative increase that sparked a seller strike that year. Before that, the rate had been 5% since 2018 (raised from 3.5%). There has been no further rate increase since 2022, though other fees (payment processing, Offsite Ads) have shifted.
Free shipping doesn't reduce the fee
A common misconception: offering "free shipping" avoids the transaction fee on shipping. It doesn't — Etsy's 6.5% still applies to whatever price you set, since the shipping cost is simply baked into the item price instead of charged separately. The fee outcome is the same either way; only the buyer-facing display changes.