Amazon FBA Tax Calculator 2026 β€” FBA Seller Income Tax

Calculate federal income tax and self-employment tax on Amazon FBA profits. Enter revenue, COGS, FBA fees, advertising, and storage costs for a complete picture.

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Total sales before any deductions
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Product cost + import duties + sourcing fees
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Fulfillment + referral fees (usually 25-35% of revenue)
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$
Sponsored Products, Brands, Display
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Monthly + long-term storage fees
$
Net refunds paid to customers
$
Software, tools, professional fees, home office
%
Net profit: β€”
$0
Total Tax
$0
Net Profit
0%
After-Tax Profit Margin
$0
Quarterly Estimate

Full Tax Breakdown

How Amazon FBA Seller Taxes Work

Amazon FBA sellers are generally considered self-employed (sole proprietors or LLCs) and report income on Schedule C. Your taxable profit equals gross revenue minus all business costs β€” COGS, Amazon fees, advertising, storage, shipping, and returns.

The Formula

Net Profit = Revenue βˆ’ COGS βˆ’ FBA Fees βˆ’ Shipping βˆ’ Advertising βˆ’ Storage βˆ’ Returns βˆ’ Other
SE Tax = Net Profit Γ— 92.35% Γ— 15.3% (only if Net Profit β‰₯ $400)
AGI = Net Profit βˆ’ (SE Tax Γ· 2)
Taxable Income = AGI βˆ’ Standard Deduction
After-Tax Profit Margin = (Net Profit βˆ’ Total Tax) Γ· Revenue Γ— 100%

Example

Jordan, single FBA seller, $150K revenue, $109K total costs:
Net profit: $41,000 | SE tax: $5,796 | SE deduction: $2,898
AGI: $38,102 | Taxable: $23,102 | Federal tax: ~$2,630
Total tax: ~$10,726 | After-tax profit: $30,274 | Margin: 20.2%
Extended

Amazon Revenue Breakdown Analysis

See how much of each sale goes to Amazon fees, COGS, taxes, and your pocket

See exactly where every dollar of revenue goes. This breakdown uses your numbers from the main calculator above.

Revenue Allocation Amount % of Revenue Notes

Multi-State Nexus Warning

Amazon FBA creates physical nexus in states where Amazon stores your inventory. You may owe sales tax registration and filing in these states even though Amazon collects and remits on your behalf.

Action steps: (1) Pull your Amazon "Inventory Event Detail" report to see which states hold your inventory. (2) Register for sales tax in each state. (3) File returns even if $0 owed β€” Amazon's Marketplace Facilitator coverage satisfies the collection obligation, but you still need to register and file in many states.

States where Amazon typically has FCs: AZ, CA, CO, CT, DE, FL, GA, IL, IN, KS, KY, MD, MI, MN, MO, NJ, NV, NY, NC, OH, PA, TN, TX, VA, WA, WI. Check TaxJar or Avalara for current nexus analysis.

Frequently Asked Questions

What taxes do Amazon FBA sellers pay?
Amazon FBA sellers typically pay: (1) federal income tax on net profit at marginal rates, (2) self-employment tax of 15.3% on 92.35% of net profit (if operating as a sole proprietor or single-member LLC), and (3) state income tax. If your net profit from FBA is under $400, you do not owe self-employment tax. Many sellers also owe sales tax in states where Amazon has fulfillment centers (nexus states).
Are Amazon FBA fees tax deductible?
Yes. All Amazon FBA-related costs are deductible Schedule C business expenses: FBA fulfillment fees, storage fees, referral fees, advertising/PPC spend, shipping to Amazon warehouses, and returns/refunds processing costs. These reduce your net profit before calculating both income tax and self-employment tax β€” making them worth approximately 30-40 cents on the dollar for most sellers.
Does selling on Amazon create sales tax nexus?
Yes. Amazon FBA creates economic nexus in states where Amazon warehouses your inventory. As of 2026, most states have economic nexus thresholds (typically $100,000 in sales or 200 transactions). Additionally, "physical nexus" is created when Amazon stores your products in their fulfillment centers. Amazon collects and remits sales tax in all states with sales tax (the Marketplace Facilitator laws), but you still need to register in nexus states and may need to file returns.
Should I form an LLC for my Amazon FBA business?
A single-member LLC provides liability protection but is taxed identically to a sole proprietorship β€” you pay full SE tax. If your net profit consistently exceeds $50,000-$80,000 per year, electing S-Corp status may save significant SE tax. At $100K net profit, S-Corp savings can be $7,000-$12,000 annually after accounting for payroll costs. Consult a CPA before making this election.
What is COGS for Amazon FBA and how do I calculate it?
Cost of Goods Sold (COGS) is the direct cost of the products you sell: product cost + shipping to you from supplier + import duties and customs fees. It does not include FBA fees, advertising, or storage (those are separate operating expenses). COGS is deducted on Schedule C, reducing your taxable profit. Proper COGS tracking using FIFO or average cost methods is essential for accurate tax filing.

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