Depop Seller Tax Deductions 2026

~5 min read

2026 Tax Summary — Depop Seller

Depop Seller workers pay 15.3% self-employment tax on net earnings. On $25,000 net income: approximately $3,532 SE tax + $2,000 federal = $5,532 total tax. Quarterly payment: $1,383. Federal SE tax is 15.3% on net earnings up to $168,600, then 2.9% above that. Set aside 25% of every payment.

Self-employed Depop sellers owe 15.3% SE tax on net earnings. See every 2026 deduction — inventory, shipping, fees — plus new 1099-K thresholds.

Avg Savings: $900–3,000/year IRS Schedule C 2026 Tax Rules Free — No Signup

Key Takeaways

01Cost of goods sold — what you paid for inventory you resell — reduces your taxable profit, separate from other deductions.
02Set aside 25–30% of net earnings and pay estimated quarterly taxes by Sep 15 and Jan 15.
03Deduct 50% of your SE tax on Form 1040 Line 15 — an above-the-line deduction most 1099 workers miss.

Top Tax Deductions for Depop Seller Workers in 2026

Cost of goods sold

Inventory & Sourcing Costs

What you paid for items you resell (thrifted, wholesale, or vintage) reduces your taxable profit dollar-for-dollar.

100% deductible

Depop & Payment Fees

Depop's selling fee and PayPal/Stripe processing fees are fully deductible business expenses.

100% deductible

Shipping & Packaging

Postage, mailers, tape, and labels used to ship sold items.

100% deductible

Photography Equipment

Cameras, lighting, and props used to photograph items for your listings.

$5/sq ft (max $1,500)

Home Office / Storage

Space used exclusively for photographing, packing, and storing inventory.

100% deductible

Software & Apps

Listing tools, cross-posting apps, and accounting software used to run your shop.

Frequently Asked Questions — Depop Seller Taxes 2026

“IRS FAQs clarify the Form 1099-K reporting threshold reverts to the $20,000/200-transaction rule under the One Big Beautiful Bill.” — IRS.gov Newsroom

Q: Do I owe taxes on Depop sales if I'm just decluttering?

Generally no — selling personal items you already owned for less than you paid isn't taxable income. Buying items specifically to resell for profit is a business, and that profit is taxable.

Q: What's the 1099-K threshold for Depop in 2026?

Under current IRS rules, the federal 1099-K reporting threshold reverted to $20,000 and 200 transactions. You still owe tax on business profit even without a 1099-K.

Q: Can I deduct what I paid for inventory?

Yes — the cost of items you resell is deducted as cost of goods sold, separate from your other business expenses.

Q: Do I pay self-employment tax on Depop profit?

Yes, if selling is a business rather than occasional personal-item sales, net profit is subject to 15.3% SE tax plus income tax.

Related Deduction Pages

Disclaimer: This checklist is for general educational purposes only and is not personalized tax or legal advice. Tax rules change and your situation is unique — always follow official IRS guidance and consult a qualified tax professional before filing. IRS Gig Economy Tax Center

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Written & reviewed by

Ethan Blake

Tax Compliance Specialist

Writes about 1099 tax deductions, self-employment tax, and IRS rules for independent contractors and freelancers.

Last reviewed: July 2026 IRS Self-Employed Tax Center

Disclosure: This site may contain affiliate links. If you click and purchase, we may earn a small commission at no extra cost to you. We only recommend tools we trust. This is not tax advice.

Depop Seller Tax Deductions 2026

Top Tax Deductions for Depop Seller Workers in 2026

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Frequently Asked Questions — Depop Seller Taxes 2026

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