Starting October 1, 2025, sellers with a return address in Texas will see an additional tax applied to SidelineSwap’s seller fee. This is due to a new Texas state regulation.
This Texas Seller Fee Tax is different from the regular sales tax charged to buyers. Instead, it applies to the commission that SidelineSwap collects for facilitating a sale.
By law, the tax applies to 80% of SidelineSwap’s seller fee on each sale.
The rate is based on the 6.25% Texas state sales tax plus any local sales tax (city, county, etc.) where the seller is located. For most sellers, this combined rate will be around 8.25%, though it may vary slightly by location. This tax will be automatically deducted from your earnings at the time of sale.
Example
- A buyer purchases an item for $100.
- SidelineSwap’s fee is $12 (12% of the list price).
- Texas applies tax to 80% of the fee ($12 × 80% = $9.60).
- At an 8.25% combined rate, the commission tax is $0.79 ($9.60 × 8.25%).
Where can I see this tax?
- Your receipt – On any completed sale, the Texas Seller Fee Tax will appear as a separate line item under deductions.
⚠️ Note: SidelineSwap can’t provide tax advice. If you have specific questions about how this affects your filings, we recommend consulting a tax professional.