How much does walmart take out for taxes

There are many factors to consider when deducting business expenses, such as how much does walmart take out for taxes. You don’t want to find yourself in a situation where you get audited and realize that you overlooked some details. Don’t worry! I’m going to give you a breakdown of how the tax system works, as well as help you identify specific deductions that could save you money on your taxes.

When you get paid by Walmart, the main thing you need to know is how much of your check you’ll actually see. One aspect of Walmart’s paychecks that is not easy to understand is the deductions. When you get a paycheck from Walmart each time, there are several deductions that have been taken out of your paycheck. A huge chunk of your paycheck will be taken out and only then can you walk away with your take-home pay!

Walmart does not take out taxes for its employees. It does, however, take out taxes for itself.

The company is a corporation and pays income tax on the money it makes through sales of products.

The company also collects sales tax from customers who buy products from Walmart stores or online.

Whether you are a new Walmart supplier or beginning your business on Walmart Marketplace, just getting set up can be overwhelming. Among the details of item descriptions, images, and shipping information, one critical detail is essential in staying compliant: configuring sales tax for transactions.

Read on to learn how sales tax works at Walmart, how the company can calculate it for suppliers, and where suppliers can find more information for setup and updates.

How Sales Tax Works at Walmart

Every Walmart store attaches the sales tax to products ordered online. These products include purchases fulfilled from a physical Walmart store or distribution center as well as products purchased and shipped from a Walmart Marketplace seller. Because Walmart has locations in every state, all transactions are legally subject to sales tax.

While configuring sales tax for online transactions is not a mandatory step when setting up an account to sell on, it is heavily recommended. Walmart can handle the collection of taxes for suppliers through its pricing algorithm. This is an option suppliers can select during their initial setup with or when updating their account at a later time.

The price and tax calculation is based on the state of the customer and seller, the sales tax policies of the seller, and local and state laws. The exact amount of tax charged is subject to the type of item in each transaction, packaging, processing, seller registration, etc.

Tax laws can change in each state or jurisdiction frequently. When this happens, Walmart will update its pricing algorithm. This ensures its customers are paying the correct tax on purchases and the suppliers’ sales stay compliant.

If you are preparing to set up an account to sell on, check out our blog How to Sell to Walmart: Get Your Product in Walmart in 4 Steps.

Suppliers Calculating Their Own Sales Tax

Some suppliers do not choose to let Walmart handle sales tax through the Walmart pricing algorithm. These suppliers can incorporate taxes in the cost of the product itself and then remit taxes to the state later.

If a supplier elects to handle Walmart sales tax on their own, configuring sales tax at is not required. Allowing Walmart to handle the taxes simply saves suppliers time and helps avoid risks of incorrect calculations when tax laws change in each state.

Whether a supplier chooses to handle sales tax on their own or use the Walmart algorithm, a sales tax policy must be included during the initial account setup. In either case, it is advised the supplier consult with a legal or financial expert to stay in compliance with tax laws.

Nexus vs. Compulsory Tax States

nexus state refers to a state where a company has tax obligations as dictated by the laws of that state. Filling tax details during supplier onboarding is not required. However, suppliers are required to file in the states where they have the obligations. To comply and fulfill the requirement by state, it is recommended suppliers talk with a legal or financial tax advisor. Walmart suppliers will be required to file in their nexus states at the time of onboarding. Should tax laws change, suppliers can go back into the Seller Center and update their settings.

compulsory state refers to a state where Walmart is required to collect taxes no matter what the supplier’s preference is in that state. These are automatically selected when the supplier opens the nexus settings.

Configuring Sales Tax Setting for

When configuring the sales tax setting to sell on, sellers should follow these steps:

  1. Log in to the Walmart Seller Center.
  2. Locate the Tax Setup page.
  3. Select all the states in which you have nexus. It is very important to follow Configuring Your Taxes in the Seller Center for state-specific requirements.
  4. Under the Tax Codes section, enter one tax code per shipping option. It is acceptable to use the generic tax code 2038710.
  5. Include a brief Tax Policy to let Walmart customers know about your general tax policies and rules. Ex: “5% sales tax will be applied to all orders shipped to any Ohio address.”

Sales Tax Codes for

Walmart provides an updated tax code file for suppliers in its Seller Center. The company will not provide tax advice to suppliers (including instructions about what tax code to assign to specific items). It is recommended that suppliers ask a tax advisor for guidance on which tax code should be used for individual items.

To access Walmart’s Tax Code file, a supplier should follow these steps:

  1. Log in to the Walmart Seller Center.
  2. In the top right, select the Settings icon.
  3. Under Partner Profile select Taxes.
  4. Scroll down to the Download section.
  5. Look for Get US Tax Codes to download the spreadsheet.


To help suppliers find success and stay compliant selling on, the company provides many tools and resources. So many guides, portals, and spreadsheets can seem overwhelming, but it helps to ask questions from experts as you begin to set up for the first time.

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