eBay 1099-K and Taxes (2026): Thresholds Explained
Verified 2026-08-14
For the 2026 tax year, eBay sends a Form 1099-K only if your sales exceed $20,000 and more than 200 transactions, after a 2025 law restored the higher threshold. But not receiving a form does not mean you owe no tax: you must report income whether or not eBay sends a 1099-K. This guide explains the current threshold, what the form does and does not mean, how sellers work out what is taxable, and the deductions that reduce it. It is general information, not tax advice.
Key takeaways
- For 2025 and 2026, the federal 1099-K threshold is back to more than $20,000 in gross payments AND more than 200 transactions; both must be met.
- Not getting a 1099-K does not mean you owe no tax, you are legally required to report income regardless.
- A 1099-K reports gross payments (before fees, shipping, and refunds), not your profit, so it is not the amount you are taxed on.
- Selling your own used items for less than you paid generally is not taxable income; reselling for profit is.
- Some states set lower 1099-K thresholds, so sellers there may get a form at a smaller amount.
The 2026 threshold: $20,000 and 200 transactions
The federal reporting threshold for Form 1099-K changed again in 2025, so ignore older guides that mention $600.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, repealed the $600 threshold that the American Rescue Plan Act had set, and restored the previous threshold of more than $20,000 in gross payments AND more than 200 transactions in a calendar year. Both conditions must be met.
So for the 2025 and 2026 tax years, eBay will send you a 1099-K only if your gross sales through eBay exceed $20,000 and you have more than 200 transactions. A seller who does $5,000 across 150 sales, for example, will not receive a 1099-K from eBay.
This is a meaningful rollback from the $600 rule that had been looming, and it means most casual and small sellers will not get a form. But, and this is the crucial part covered next, the form is just a report; it does not decide whether you owe tax. You can owe tax with no 1099-K, and you can receive a 1099-K on income that turns out not to be taxable. The threshold only governs the paperwork.
No 1099-K does not mean no tax
This is the single most important, and most misunderstood, point: whether you get a 1099-K and whether you owe tax are two different questions.
A 1099-K is simply an information report that eBay sends to you and the IRS when you cross the threshold. Not receiving one does not mean your activity is tax-free. You are legally required to report your taxable income regardless of whether any form was issued.
So do not treat the $20,000 threshold as a ‘tax-free allowance.’ If you are reselling for profit, that profit is taxable income even at $2,000 or $8,000 in sales, well below the form threshold. The threshold only determines whether the IRS gets an automatic report; it does not determine what you owe.
The flip side is also true: receiving a 1099-K does not automatically mean you owe tax on the full amount. The form reports gross payments, and much of that may be offset by your costs, or may not be taxable at all (next sections). The takeaway: use the form as a record if you get one, but base what you report on your actual income and costs, not on whether a form arrived.
What a 1099-K actually reports
If you do receive a 1099-K, it is important to read it correctly, because it is not a profit statement.
A 1099-K reports your gross payments: the total amount buyers paid you through the platform over the year, before anything is subtracted. That figure includes:
- eBay and payment processing fees you paid,
- shipping the buyer paid that passed through you,
- sales tax eBay collected, in some cases, and
- amounts later refunded to buyers.
So the number on the form is almost always larger than your actual income. You do not pay tax on the gross figure; you pay tax on your net profit after subtracting your costs (covered below).
This is why sellers who cross the threshold should keep good records: the 1099-K gives the gross, and your own records of fees, shipping, refunds, and what you paid for items turn that into the real, much smaller, taxable number. You can find your eBay tax documents and detailed reports in Seller Hub under the Payments or reports section.
Is your eBay income even taxable?
Whether your eBay income is taxable depends on what you are doing, and this is where many casual sellers overpay or panic unnecessarily.
Selling your own used personal items (cleaning out your closet, garage, or attic) is usually not taxable income when you sell for less than you paid. If you bought a couch for $800 and sell it for $200, that is a personal loss, not income, and personal-use losses are not deductible either. Most decluttering falls here.
Reselling for profit, buying items to flip, or making and selling goods, is a business activity, and the profit is taxable. If you buy sneakers for $60 and sell them for $150, the $90 gain (minus fees and shipping) is taxable business income, typically reported on Schedule C.
The gray area is a hobby that makes money: occasional profitable sales that are not really a business. Hobby income is still reportable, but the rules on deductions differ. Because the line between decluttering, a hobby, and a business affects what you owe, this is exactly the kind of situation to run by a tax professional. For the broader picture, see our guide to whether you pay taxes on reselling.
Deductions that lower what you owe, and state rules
If your selling is a taxable business, you are taxed on profit, not revenue, and legitimate business costs reduce that profit. Common deductions for eBay sellers include:
- Cost of goods sold, what you paid for the items you sold,
- eBay and payment processing fees,
- shipping and postage costs,
- packaging and supplies (boxes, tape, labels, poly mailers),
- mileage for sourcing or post office trips, and
- a home office deduction if you qualify.
Keeping receipts and records for these is what turns a scary gross 1099-K figure into a modest taxable profit. Good bookkeeping is the single best tax move a reseller can make.
A state caveat: several states set their own, lower 1099-K thresholds than the federal $20,000 and 200 transactions, so if you live in one of them, you may receive a form at a smaller amount. This does not change what is taxable, only whether a form is issued. Because tax situations vary so much by activity and state, treat this article as general information and consult a qualified tax professional or the IRS for your specific circumstances.
Frequently asked questions
What is the eBay 1099-K threshold for 2026?
For the 2025 and 2026 tax years, the federal threshold is back to more than $20,000 in gross payments AND more than 200 transactions in a calendar year, after a 2025 law repealed the $600 rule. Both conditions must be met for eBay to send you a 1099-K. Some states set lower thresholds.
Do I owe taxes on eBay sales if I don’t get a 1099-K?
Possibly, yes. Not receiving a 1099-K does not mean your income is tax-free. You are legally required to report taxable income regardless of whether any form was issued. If you resell for profit, that profit is taxable even well below the $20,000 form threshold. The threshold only governs the paperwork.
Does a 1099-K show my profit?
No. A 1099-K reports gross payments, the total buyers paid you before subtracting eBay fees, payment processing, shipping, sales tax, and refunds. The real taxable number is your net profit after those costs, which is almost always much smaller. Keep records so you can reduce the gross figure to actual income.
Do I pay tax on selling my used personal items on eBay?
Usually not, if you sell them for less than you paid. Selling personal items at a loss, like decluttering your closet, is generally not taxable income, though the loss is not deductible either. Reselling for profit is different: that profit is taxable business income, typically reported on Schedule C.
What can eBay sellers deduct on taxes?
If your selling is a taxable business, you can deduct the cost of goods sold, eBay and payment processing fees, shipping and postage, packaging and supplies, mileage for sourcing or post office trips, and a home office if you qualify. These reduce your taxable profit, so keep receipts and records.
Where do I find my eBay tax documents?
Your 1099-K, if you receive one, and detailed transaction reports are available in eBay Seller Hub, under the Payments or reports section. eBay needs your taxpayer information (SSN or EIN) on file to issue the form; without it, backup withholding can apply. Consult a tax professional about how to use these documents.
What sellers are reporting
Sellers on the eBay community boards repeatedly correct the misconception that the 1099-K threshold is a tax-free allowance, pointing out that profit from reselling is taxable regardless of whether a form is issued.
members of the eBay Community selling board, community post
Resellers frequently emphasize keeping records of cost of goods, fees, shipping, and supplies, reporting that good bookkeeping turns a large gross 1099-K figure into a modest taxable profit.
members of the r/Flipping community, community post
What this guide does not cover
This is general information about eBay’s 1099-K and US seller taxes for 2026, not tax or legal advice. Thresholds, state rules, and tax law change, and your situation depends on facts this article cannot cover, so confirm current rules with the IRS and consult a qualified tax professional before filing.
Sources
- The 2025 law restored the Form 1099-K reporting threshold to more than $20,000 in gross payments and more than 200 transactions, and eBay reports on that basis while noting you must still report income. (eBay Seller Center)
- The IRS explains what Form 1099-K reports (gross payments), the reporting threshold, and that taxpayers must report taxable income regardless of whether a form is received. (IRS)
- General guidance on whether you pay taxes on reselling income, hobby versus business, and deductions. (Thrift Wagon)
