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 teamContent reviewed
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.