Marketplace Facilitator Sales Tax (September 2022)
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Many US states now require businesses like Upwork to collect and remit marketplace facilitator sales tax when sales are made from purchasers who are located in particular states. This tax will only be assessed on the payments clients make to freelancers.
Starting as early as September 29, or shortly after, Upwork will collect and remit marketplace facilitator sales tax on hourly and fixed-price freelancing services that are purchased by marketplace clients living in these states. We emailed all who may be subject to these tax laws.
Although the freelancer’s location does not exempt any clients living in these states from this legal requirement, taxability will depend on the client’s city and county of residence.
For more information, visit our support section for sales tax.
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