Reseller Taxes is a free guide to US federal tax for people who resell online. You pay tax on reselling profit, not on sales, with or without a 1099-K; for 2025 and 2026 a marketplace sends that form only above $20,000 and 200 transactions. Each guide below names the IRS source and the tax year behind its figures.
Which 2026 tax figures matter to resellers?
| Figure | Amount | Source |
|---|---|---|
| 1099-K threshold (marketplaces and payment apps) | Over $20,000 and over 200 transactions | IRS Publication 1099 (2026) |
| Self-employment tax | 15.3% of 92.35% of net profit; none if that's under $400 | Schedule SE |
| Social Security wage base | $184,500 | IRS Publication 15 (2026) |
| Business mileage | 72.5¢ a mile Jan 1 to Jun 30; 76¢ Jul 1 to Dec 31 | IRS standard mileage rates |
| Estimated tax due dates | Apr 15, Jun 15, Sep 15, 2026; Jan 15, 2027 | 2026 Form 1040-ES |
| Standard deduction | $16,100 single; $32,200 married filing jointly | IRS, IR-2025-103 |
| De minimis safe harbor | $2,500 per invoice or item; not for inventory | IRS tangible property rules |
What causes most reseller tax trouble?
- Profit, not sales. You're taxed on what's left after the cost of goods and expenses. A 1099-K reports gross payments, a much larger number, and eBay's version of the form is no exception.
- Inventory isn't spending. Stock you bought and haven't sold is an asset. It becomes a deduction in the year it sells, which surprises many new resellers.
- eBay doesn't withhold your tax. Once it has your taxpayer ID, the full payout arrives and part of it isn't yours. The fix is mechanical: move a percentage to a separate account the day money lands.
How does this site handle tax figures?
Tax figures change, and several changed in 2025 and 2026 alone: the 1099-K threshold went back to $20,000 and the 2026 mileage rate rose mid-year. So every figure here names its tax year and links to the IRS document it came from, and the pages are rechecked each winter when new rates and forms come out. If a figure here ever disagrees with IRS.gov, IRS.gov wins. Tell us and we'll fix it.
What is Reseller Taxes?
Why is my 1099-K so much higher than my income?
How much should resellers set aside for tax?
The guides
Reseller tax basics: what's taxable and what isn't
Profit, not sales. Personal items, hobby or business, and the self-employment tax people forget.
6 min readeBay taxes: what you owe and when eBay sends a 1099-K
The $20,000 and 200 rule, what's inside eBay's number, where to download it, and the tax on profit.
9 min readThe 1099-K, explained for resellers
Why the number is bigger than your income, and how to reconcile it line by line.
5 min readThe 1099-K threshold for 2025 and 2026, and how it got here
Over $20,000 and over 200 transactions: the rule for 2025 and 2026, and every change since 2021.
6 min readDeductions resellers miss
2026 mileage, supplies, storage, home space for inventory, and the records each one needs.
5 min readQuarterly estimated taxes for resellers
The 2026 due dates, who has to pay, the safe harbor, and the share of profit to set aside.
5 min readSchedule C for resellers, section by section
Gross receipts, cost of goods sold, the expense lines that apply, and where postage goes.
5 min readCost of goods sold for resellers
Why unsold stock isn't a deduction yet, and how to track cost without drowning.
5 min read
Disclosure We build FlowLister and publish Reseller Taxes. FlowLister writes eBay listings from item photos, with a price taken from sold listings, and for a reseller that listing becomes part of the record of what sold. It's AI, so it misses things. It doesn't prepare taxes or keep books, and nothing on this site is tax advice.