Print-on-Demand Sales Tax Guide: Printful, Printify & More (2026)

Print-on-demand (POD) businesses have exploded in popularity. Create a design, upload it, and let fulfillment companies handle production and shipping. But where does sales tax fit in? It depends on your sales channels and which POD provider you use.

How Print-on-Demand Works (Tax Perspective)

In a POD business:

1. You create designs and list products
2. Customer places an order on your store/marketplace
3. POD provider prints and ships the product
4. Someone needs to handle sales tax

That "someone" depends on your setup.

Major POD Providers and Sales Tax

Printful

Printful is a marketplace facilitator for orders they collect payment on. This means:

• If you use Printful's built-in stores or Printful handles checkout → Printful collects and remits tax
• If you connect Printful to Shopify/Etsy/etc. → See the integration section below

Printify

Printify does NOT collect sales tax (as of 2026). They're a production partner only.

• You must collect sales tax through your sales platform
• Printify just fulfills the order
• Tax responsibility is entirely yours (or your platform's)

Gooten

Similar to Printify:

• Gooten is a fulfillment partner, not a marketplace facilitator
• You handle tax collection through your sales channel

SPOD (Spreadshirt)

• SPOD integrates with platforms that handle tax
• For direct SPOD sales, they may collect tax depending on your setup

Redbubble / TeePublic / Society6

These are marketplace facilitators:

• They collect and remit sales tax on all orders
• You just receive your profit share
• No sales tax action needed from you

Tax by Sales Channel

Here's where it gets practical. Your sales tax responsibility depends on where customers buy:

Etsy + POD

Etsy is a marketplace facilitator.

• Etsy collects and remits sales tax on all orders
• Doesn't matter which POD provider you use
• Your responsibility: $0 sales tax collection

Shopify + POD

Shopify is NOT a marketplace facilitator.

• You must set up sales tax collection in Shopify
• Shopify can calculate tax automatically
• You're responsible for remitting tax to states

With Shopify + Printful/Printify:

1. Customer pays you (including tax) via Shopify
2. You pay Printful/Printify for production
3. You remit collected tax to states

Amazon + POD (Merch on Demand)

Amazon is a marketplace facilitator.

• Amazon collects and remits sales tax
• Merch by Amazon (now Merch on Demand) is fully handled
• No action needed from you

WooCommerce + POD

WooCommerce is self-hosted (not a marketplace).

• You're responsible for sales tax
• Use WooCommerce tax plugins or Sails integration
• You must register, collect, and remit

Your Own Website + POD

If you run your own store:

• You're fully responsible for sales tax
• Use a tax calculation service (like Sails)
• Register in states where you have nexus

State-by-State Considerations

Clothing Exemptions

Many states have special rules for clothing:

State	Clothing Tax
Pennsylvania	Exempt
New Jersey	Exempt
New York	Exempt under $110/item
Minnesota	Exempt
Massachusetts	Exempt under $175/item

This matters for POD because most products are apparel!

Product Categories

POD products have varying tax treatment:

Product	Usually Taxable?
T-shirts	Yes (standard rate)
Hoodies	Yes
Mugs	Yes
Posters	Yes
Canvas prints	Yes (may be considered art in some states)
Stickers	Yes

Nexus for POD Sellers

Economic Nexus

You create economic nexus by selling TO customers in a state. Thresholds are typically:

• $100,000 in sales, OR
• 200 transactions

Once exceeded, you must collect sales tax in that state (unless a marketplace facilitator handles it).

Physical Nexus Considerations

POD creates an interesting physical nexus question: Does inventory in a POD facility create nexus?

Generally, no, because:

• POD products are made to order
• You don't pre-stock inventory
• The POD provider owns the production materials

However, consult a tax professional for your specific situation.

Practical Workflows

Workflow 1: Etsy-Only POD Seller

1. Create designs
2. List on Etsy
3. Connect to Printful/Printify
4. Sales tax: Etsy handles it all ✓
5. Focus on design and marketing

Workflow 2: Shopify + Printful

1. Set up Shopify store
2. Configure sales tax in Shopify Settings
3. Register for sales tax in nexus states
4. Connect Printful
5. Shopify collects tax, you remit quarterly/monthly
6. Download Shopify tax reports for filing

Workflow 3: Multi-Channel (Etsy + Shopify + Amazon)

1. Etsy sales → Etsy collects tax ✓
2. Amazon sales → Amazon collects tax ✓
3. Shopify sales → YOU collect and remit tax
4. Track nexus across all channels combined
5. File returns covering all channels

Record Keeping

Keep these records for each sale:

• Order date
• Customer location (state, county, city)
• Product sold
• Tax collected (if any)
• Marketplace facilitator (if applicable)

Most platforms provide downloadable reports. Save them!

Common POD Tax Questions

Do I need a resale certificate?

For buying from POD providers: Generally, no. You're buying a finished product for resale (the POD fulfillment). The POD provider is providing a manufacturing service.

For selling to resellers: If a customer provides a resale certificate, you can sell tax-exempt.

What about international sales?

• POD providers often handle VAT for EU sales
• Canada: Check provincial requirements
• Other countries: Research local requirements

Do I need business registration to sell POD?

Not necessarily for sales tax purposes, but:

• States may require business registration
• You'll need an EIN for tax purposes eventually
• Check your state's requirements

What about design services?

If you sell design services (not physical products):

• Different tax rules apply
• Some states don't tax services
• This is separate from POD product sales

Setting Up Sales Tax for POD

Step 1: Identify Your Sales Channels

List everywhere you sell:

• Marketplaces (Etsy, Amazon, eBay, Redbubble)
• Self-hosted stores (Shopify, WooCommerce, BigCommerce)

Step 2: Determine Collection Responsibility

For each channel:

• Marketplace? → They collect
• Self-hosted? → You collect

Step 3: Calculate Nexus

Add up ALL sales by state (from all channels):

• Do you exceed $100K or 200 transactions anywhere?
• That's where you have nexus

Step 4: Register and Configure

For states where you have nexus AND collection responsibility:

1. Register for a sales tax permit
2. Configure tax collection in your platform
3. Set up filing reminders

Step 5: File Returns

Even if marketplaces collected most of your tax:

• Some states require you to file $0 returns
• Report marketplace sales separately
• Keep all documentation

Tools and Resources

• Sails Calculator - Calculate tax rates for any US address
• Nexus Tracker - Track your economic nexus status
• State Deadlines - Don't miss filing dates

Conclusion

Print-on-demand has made starting a product business easier than ever. The sales tax situation is also manageable:

• Marketplace sales (Etsy, Amazon, Redbubble) → Marketplaces handle tax
• Self-hosted sales (Shopify, WooCommerce) → You handle tax
• Track nexus across all channels combined

Start with the channels that handle tax for you. As you grow into self-hosted sales, set up proper tax collection. And always keep good records!

Questions about sales tax for your POD business? Use our tax calculator or check out our other e-commerce guides.