What’s changing?
Starting October 1, 2025, Faire will begin collecting and remitting Texas sales tax (6.25%–8.25%) on commission fees for brands that are based in Texas.
This change follows a new policy adopted by the Texas Comptroller, which classifies certain marketplace services as taxable data processing services.
What does this mean for my brand if I’m registered in Texas?
You will see Texas sales tax on commission fees deducted from your payout summary on orders placed/shipped on October 1, 2025, and after. There is no action required on your part as Faire will collect the correct tax amount and remit it directly to the Texas Comptroller.
What does this mean for my brand if I’m based outside of Texas?
No change. This new rule only applies to brands based in Texas.
How is the tax calculated?
Under Texas law, only 80% of the charge for data processing services is taxable and the remaining 20% is exempt. The exemption is automatically applied — you don’t need to request it.
Example: If Faire commission fees are $100, Texas tax applies to $80 (not the full $100). At an 8.25% combined rate, sales tax would be $6.60.
How do I keep my information accurate?
Your tax treatment is determined based on your ‘headquartered in’ location listed in your brand’s Shop Page on Faire. It’s important that this information accurately reflects where your business is based.
You are responsible for keeping the location in your Shop Page up to date. If your business has moved or your location has changed, please let us know and we'll connect you with a support specialist to assist.
What rates apply?
Texas state sales tax is 6.25%, and local jurisdictions may add up to 2% on top of that, for a total combined rate of 6.25%–8.25% depending on where your brand is located.
Where can I learn more?
- Texas Administrative Code – 34 TAC § 3.330(b)(5)