When buying tickets on StubHub, one of the major questions that comes up is whether or not sales tax applies to these ticket purchases. With varying sales tax rates across different states and cities in the US, it can be confusing to determine if you need to pay extra sales tax when you buy tickets on StubHub.
The Short Answer
In most cases, yes you do need to pay sales tax when buying tickets on StubHub. The sales tax rate you pay will depend on the location of the event you are buying tickets for. StubHub is required to collect and remit sales tax on ticket purchases for events taking place in most jurisdictions in the United States.
Sales Tax Rates Vary by Location
Sales tax rates in the US vary widely across different states and cities. Some examples of sales tax rates are:
- California – 7.25% statewide rate
- New York – 4% statewide rate plus local taxes
- Chicago – 10.25% combined state and local rate
- Seattle – 10.1% combined rate
- Houston – 8.25% combined rate
Since sales tax is assessed at the local level, the rate you pay for StubHub tickets depends on the location of the event. If you’re buying tickets for a concert happening in Los Angeles, you’ll pay California’s 7.25% sales tax rate. For an event in Houston, you’ll pay Houston’s 8.25% sales tax rate instead.
StubHub Collects Sales Tax on Ticket Purchases
As an online marketplace, StubHub is generally required to collect sales tax on ticket sales for events taking place in jurisdictions that impose a sales tax. Currently, 45 US states plus Washington DC impose a statewide sales tax. Among major US cities, only Portland, Oregon does not impose a local sales tax.
This means if you are buying tickets on StubHub for an event happening in any of these tax-imposing locations, you can expect to pay the applicable sales taxes. StubHub will calculate and collect the required sales tax based on the ticket location and your delivery address, and remit those taxes to the appropriate state and local authorities.
Limited Exceptions Where Sales Tax May Not Apply
While you’ll pay sales tax in most cases, there are some limited situations where sales tax may not apply to StubHub ticket purchases:
- Buying tickets for events in Oregon – Oregon has no statewide sales tax, and Portland has no local tax.
- Picking up tickets at the venue – Some states may not require sales tax on tickets you print yourself or pick up directly at the venue box office.
- StubHub seller is not a business – If you buy from an individual seller who only occasionally sells tickets, sales tax may not apply.
Outside of those exceptions, you can plan on paying sales tax when ordering StubHub tickets for delivery or electronic transfer. The rate will be based on the combined state and local taxes where the event is being held.
Sales Tax Varies for Resale Tickets
Things get a little more complicated when you’re buying resale tickets on StubHub. When a ticket is resold on StubHub, sales tax may or may not apply depending on the state:
- No sales tax charged on resale – Some states like Minnesota and New Jersey exempt resale tickets from sales tax.
- Tax charged on difference – A few states like New York only charge sales tax on the difference between the original ticket price and the resale price.
- Full tax charged on resale – Many states charge full sales tax on the resale price, not just the difference. This includes states like California, Texas, and Illinois.
So if you’re buying a marked up resale ticket, whether you pay sales tax and how much can vary. Check your particular state’s rules. Some states provide StubHub special rules and reporting to calculate sales tax on resold tickets.
Service and Processing Fees May Also Incur Sales Tax
In addition to the ticket price itself, you may need to pay sales tax on StubHub’s service and processing fees. These fees include:
- Delivery fee – For mailed tickets
- Electronic processing fee – For electronic tickets
- Seller fee – Paid by the seller
- Buyer fee – Paid by the buyer
Many states tax these service fees the same as the ticket price itself. However, a few states like California and Texas exempt service fees from sales tax under certain situations, like when the fees are separately stated from the ticket price.
Check your own state’s rules on taxability of service fees. StubHub will calculate and collect sales tax on these fees according to applicable state and local tax laws.
No Sales Tax Collected for Non-US Ticket Sales
Sales tax only applies to ticket purchases for events within the United States. If you are buying tickets on StubHub for an event happening internationally, you do not need to pay any US sales taxes.
However, the ticket price may be subject to local taxes and fees imposed by the non-US jurisdiction. Be sure to factor those costs in when buying international tickets on StubHub.
StubHub Provides Sales Tax Estimates During Checkout
When you purchase tickets on StubHub, you won’t see a sales tax charge until you go through the checkout process. On the checkout page, StubHub will provide a detailed estimate of the total sales tax to be collected based on the event location and your delivery method.
This allows you to see exactly how much sales tax you’ll owe before completing the transaction. The final sales tax StubHub collects will match the estimate provided at checkout.
Sales Tax May Also Apply to Parking Passes and Other Ancillary Items
In addition to event tickets, you may also purchase parking passes, VIP packages, hotel rooms, and other ancillary items on StubHub. In most cases, these items are also subject to the same sales tax as tickets for events in that jurisdiction.
For example, if you buy a parking pass along with concert tickets for an event in Los Angeles, you’ll pay California sales tax on both the tickets and the parking pass. Any bundled items included in your StubHub order will get sales tax assessed based on the location of use.
Resellers May Need to Register and Remit Sales Tax
If you plan to resell a significant volume of tickets on StubHub, you may need to register, collect, report, and remit sales tax to your state. Requirements vary by state, but occasional small-scale resellers are often exempt from sales tax requirements.
However, resellers who repeatedly sell tickets in larger amounts may be required to register as a vendor and handle their own sales tax accounting and payments. Check your own state’s rules to see if sales tax registration is required for your StubHub selling activities.
Third-Party Sellers Set Their Own Prices and Taxes
For tickets sold directly by StubHub, the company calculates and collects all required sales taxes. But for third-party seller tickets, the individual sellers determine the ticket prices and sales taxes charged.
StubHub provides guidance to sellers on properly charging sales tax. However, sellers ultimately set the ticket prices, fees, and sales tax details for their listings. Review seller tax policies carefully before purchasing third-party tickets.
Sales Tax Will Appear as a Separate Line Item During Checkout
Whichever party sets the sales tax – either StubHub for direct sales or third-party sellers – the sales tax will appear as its own line item during the checkout process. The sales tax amount is calculated and shown separately from the item cost and service fees.
This allows you to clearly see how much tax you’re being charged. Sales tax is then included in total amount you pay at checkout. But it will display separately so you know exactly how much sales tax is collected.
You May Be Able to Claim a Credit on Out-of-State Taxes
If you buy tickets for an event held in another state, and that state collects sales tax, you may be able to claim a credit for those taxes paid when you file your own resident state tax return.
For example, if you live in Oregon with no sales tax, but buy tickets for a concert in California and pay that state’s 7.25% tax, you may be able to take a Oregon tax credit for the California tax amount. The credit removes “double taxation” on the purchase.
However, the rules for claiming credits for out-of-state sales taxes paid can be complex. Consult with a local tax professional to ensure you properly claim any eligible cross-border tax credits.
Sales Tax May Also Apply to Hotels and Rentals Booked via StubHub
In addition to event tickets, you can also book hotel rooms and rental cars on StubHub. For hotels and rentals, the sales tax charged will depend on where the hotel or rental agency is located, not the location of the event.
For example, if you book a Detroit hotel for a concert in Chicago, you’ll pay the Detroit hotel tax rate. Similarly for rental cars, you’ll pay the sales tax rate associated with the rental location, even if you’re driving to an out-of-state event.
Keep Your Receipts for Sales Tax Documentation
Save your StubHub receipts, invoices, and confirmation emails for all ticket purchases. These contain the sales tax details and documentation you may need for:
- Verifying sales tax charged for deductions and credits
- Proving tax paid for state registrations
- Supporting sales tax calculations for income tax returns
- Documenting expenses for tax authorities
With the right receipts, you can properly track, claim, and verify any sales taxes paid on StubHub ticket transactions.
Sales Tax May Apply Differently for Electronic vs. Hard Tickets
Does it make a difference if you get electronic tickets versus hard tickets mailed to you? In some cases, yes. Certain states provide different sales tax rules and exemptions based on how tickets are delivered:
- Electronic only taxed on fees – States like CA and TX may exempt electronic ticket fees from sales tax.
- Hard copy taxed fully – Physical tickets often have full sales tax applied, including fees.
- Exemptions for print-at-home – Some states like MN don’t tax tickets you print yourself.
Check your own state’s guidance to see if digital versus hard copy tickets fall under different sales tax policies. StubHub will charge the right tax rate based on delivery method.
Conclusion
In summary, sales tax almost always applies when buying tickets through StubHub for events in tax-imposing jurisdictions. The rate charged will depend on the combined state and local sales tax where the event is being held.
StubHub will estimate and collect the applicable sales taxes on tickets for events in the US and remit those taxes to the appropriate revenue authorities. Keep your receipts to track sales taxes paid for deductions and credits.
In limited cases like Oregon events or print-at-home tickets, sales taxes may not apply on StubHub ticket purchases. But in general, expect to pay sales taxes on top of your StubHub ticket order for most states and events.