Etsy etsy payments processing fee (canada) — Canadian seller guide
What the Etsy etsy payments processing fee (canada) is for a Canadian shop, what Etsy says it costs, and where it can show up on your T2125.
| Fee | Etsy Payments processing fee (Canada) |
|---|---|
| What Etsy says it costs | 3% + CA$0.25 per order for domestic orders or orders from the US; 4% + CA$0.25 for international orders |
| CraftLedger default T2125 line | Line 8710 – Interest and bank charges |
Details from Etsy
- The rate depends on the location of your bank account; these are the rates for a Canadian bank account. [Etsy Help]
- Taken from the item's total sale price, including shipping fees and any applicable sales tax. [Etsy Help]
- Deducted before deposit; on refunds the fee is credited proportionally. [Etsy Help]
GST/HST on this fee
- If Etsy already collected GST/HST from the buyer on the order and you are not GST/HST registered, Etsy says you are not charged GST/HST on the payment processing fee for that sale. [Etsy Help]
Is it deductible?
- CRA lists 'costs from using a platform to sell products' as an example of an eligible expense for peer-to-peer sellers, along with marketing costs to increase traffic to your online store and the cost of materials such as wood, wool, paint and beads. [Taxes in the platform economy]
- Enter only the business part of expenses on Form T2125; personal expenses are not deductible. [Expenses]
CRA describes line 8710 (Interest and bank charges) like this: “You can deduct interest on money borrowed for business purposes or to acquire property for business purposes, with limits (for example on passenger vehicles and vacant land).” [Expenses] CraftLedger places this fee there by default; CRA does not publish an Etsy-specific line mapping.
Etsy fee estimator for a Canadian shop
Rates: [Etsy Help] [Etsy Help] [Etsy Help]. Estimate only; your Etsy Payment account is the record.
Turn your Etsy CSVs into a T2125 summary in your browser
CraftLedger reads your Etsy Monthly Statement and Sold Orders CSVs locally (nothing uploaded), totals gross sales and fees, groups fees by T2125 line, and tracks the $30,000 small-supplier threshold by quarter. Free preview; CA$29 per tax year for the full export.
Try the free preview Get the tax-year pass (CA$29)Frequently asked questions
How much is the Etsy etsy payments processing fee (canada) in Canada?
Etsy's help centre says: 3% + CA$0.25 per order for domestic orders or orders from the US; 4% + CA$0.25 for international orders. (Checked October 29, 2026.)
Can I deduct the Etsy etsy payments processing fee (canada)?
CRA lists costs from using a platform to sell products as an example of an eligible expense for peer-to-peer sellers. Enter only the business part of expenses on Form T2125.
Which T2125 line does the Etsy etsy payments processing fee (canada) go on?
CRA does not publish an Etsy-specific mapping. CraftLedger groups this fee on line 8710 (Interest and bank charges) by default; confirm the treatment with a tax professional.
