Etsy transaction fee — Canadian seller guide
What the Etsy transaction fee is for a Canadian shop, what Etsy says it costs, and where it can show up on your T2125.
| Fee | Transaction fee |
|---|---|
| What Etsy says it costs | 6.5% of the total order amount |
| CraftLedger default T2125 line | Line 8871 – Management and administration fees |
Details from Etsy
- Applies to the order total in your listing currency, including shipping and gift wrapping if you charge for them. [Etsy Help]
- It is different from the Etsy Payments processing fee. [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 transaction 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 8871 (Management and administration fees) like this: “You can deduct management and administration fees including bank charges incurred to run your business.” [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 transaction fee in Canada?
Etsy's help centre says: 6.5% of the total order amount. (Checked October 29, 2026.)
Can I deduct the Etsy transaction fee?
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 transaction fee go on?
CRA does not publish an Etsy-specific mapping. CraftLedger groups this fee on line 8871 (Management and administration fees) by default; confirm the treatment with a tax professional.
