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Ecommerce taxes · Free estimator

Shopify Sales Tax & Profit-After-Tax Calculator

Project Shopify store profit after COGS, platform fees, ad spend, sales tax collected, and self-employment + income tax on the net.

Estimates only — not tax advice. Tax brackets shown are for 2025 (United States). Federal + state income tax (all 50 states + DC). Rates reviewed for 2025. Always confirm with a qualified accountant or tax professional before filing.Need a referral?
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$240,000
35%
3.4%
$36,000
7%

Sales tax / VAT is collected from customers and remitted — it's not your revenue.

How it's calculated

From gross sales to profit after tax

E-commerce profit calculations break in two places: founders forget that sales tax / VAT collected isn't revenue, and they tax themselves on gross sales instead of net profit.

Gross profit = Sales − COGS − shipping − platform fees
EBITDA = Gross profit − ad spend − opex
Profit after tax = EBITDA − (SE tax + income tax)

Sales tax / VAT is not your money

You collect it from the customer at checkout and remit it to the tax authority. Treat it as a liability the moment it hits your bank — most banks now offer auto-sweep into a separate tax reserve account.

Where Shopify stores actually make money

Net margin for healthy DTC brands lands around 8–15% after ad spend. The biggest profit lever isn't price — it's repeat purchase rate, which lowers blended CAC and lets you re-invest into product or margin.

  • • 30–40% gross margin is the floor for a paid-traffic brand.
  • • Ad spend should generally stay under 30% of revenue at scale.
  • • Returns + refunds eat 5–20% of apparel/accessories revenue — model them.

Related guides

Long-form playbooks on the same topic, written by the RevenueLab editorial team.

Guide · 9 min read

Shopify Conversion Rate Benchmarks 2026: What's Good for Your Vertical

Median Shopify conversion rates by vertical, the metrics that matter more than CR (AOV, repeat rate, contribution margin), and a teardown of why most stores miss their forecast.

Read the guide
Guide · 9 min read

Amazon FBA Fees Explained: A Sellers' Guide to Real Unit Economics in 2026

Referral fees, FBA fulfillment, storage, returns, and ad spend — the line items that turn a 'profitable' Amazon SKU into a money loser, and how to model them honestly.

Read the guide

FAQ

Why is the after-tax profit so much lower than I expected?

Most founders mentally count sales tax collected as revenue and forget self-employment tax. Both add up fast — a $240k store with $36k ad spend often nets only $40–60k take-home.

Does Shopify collect sales tax for me?

Shopify Tax helps calculate and apply the right rate, but YOU are responsible for registering, filing, and remitting in each nexus state. It is not a tax-of-record service.

What about sales tax across many states / countries?

Use our SaaS sales tax & nexus estimator for US economic nexus exposure. EU/UK VAT (OSS/IOSS) is different — UK VAT registration triggers at £90k threshold.

Important: this is not tax advice

Calculations use simplified, current published brackets for United States (2025). US estimates layer the selected state's 2025 income tax rate on top of federal — local city taxes (e.g. NYC, Philadelphia) and progressive within-state brackets are not modelled.They do not account for credits, alternative minimum tax, the Net Investment Income Tax, foreign income, R&D credits, or your personal circumstances. Always confirm with a licensed CPA, chartered accountant, or registered tax agent before filing.