2026 · Depop
Depop taxes: what you owe and when a form comes
Depop sends a 1099-K once you cross the federal threshold. But your profit is taxable well before that.
How Depop reports your income
Gross sales through Depop Payments (before fees), consistent with how other marketplaces report.
Same personal-items-at-a-loss issue as eBay for closet clean-outs vs a reselling business, the hobby-vs-business line matters here.
Total the platform processed, before fees.
Sales minus fees, materials, shipping.
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The three layers for Depop income
| Income tax | On profit from $1, no tax-free floor |
| Self-employment tax | Once net profit hits $400 |
| 1099-K form | Over 20,000 AND 200+ transactions (federal) |
Underneath sits the hobby-vs-business question, which decides whether you can deduct your Depop costs.
Questions about Depop income
Do I have to pay taxes on Depop income?
Yes, your Depop profit is taxable from the first dollar, whether or not you get a form. A 1099-K only arrives once you pass the federal threshold (over $20,000 and more than 200 transactions), but the tax applies below it too.
Will Depop send me a 1099-K?
Gross sales through Depop Payments (before fees), consistent with how other marketplaces report. You'll get a 1099-K once you're over the federal threshold, $20,000 and 200+ transactions in 2026. Same personal-items-at-a-loss issue as eBay for closet clean-outs vs a reselling business, the hobby-vs-business line matters here.
How much should I set aside from Depop earnings?
On a $6,000 profit example, the estimate is about $850 in total tax ($848 of it self-employment tax), roughly 14% of profit. Run your own numbers below.
Related
An estimate for 2026. Federal figures from the IRS; Depop reporting behavior can change, confirm with the platform. Nothing stored. Not tax advice.