Depop Sales Tax Guide: Does Depop Collect Tax for Sellers?

Here's the direct answer: yes. Depop says it "automatically calculates, collects, and remits US sales tax on behalf of sellers located anywhere in the world when an order is sent to a recipient in the US," under the marketplace facilitator laws of the states it lists (Depop). Its list covers 46 states and Washington, D.C. The tax is added at checkout on top of your price, and on those orders "no action is required on your part to collect US sales tax from buyers."

That covers the checkout, not everything. Three things still catch Depop sellers. Depop's payment processing fee is charged on the total including the sales tax. Your Form 1099-K reports unadjusted gross amounts, not what landed in your bank. And some states want a permit from sellers who live there even when every sale is on a marketplace. This guide walks through each.

Key Takeaways

• Depop calculates, collects and remits sales tax on orders sent to US buyers in the 46 states and D.C. it lists, for sellers based anywhere (Depop).
• Don't add sales tax to your listings yourself, and quote bundle prices pre-tax. Depop adds the tax at checkout, and you don't need to change any tax settings for those states.
• US sellers pay no Depop selling fee, but the 3.3% + $0.45 payment processing fee is charged on the item price, shipping and any taxes (Depop).
• Depop's 1099-K reports unadjusted gross sales, including shipping, refunds and fees, so it can show more than you were paid (Depop).
• Whether you need your own permit depends on the state and where you're based. Texas requires one from sellers based in Texas and New York from New York-based home businesses, even if they sell only through a marketplace; California generally doesn't.

Does Depop Collect Sales Tax for Sellers?

Yes, on orders shipped to the states on its list. Depop's help page "State Sales Tax in the US" says that "based on applicable US State enacted marketplace facilitator tax laws, Depop automatically calculates, collects, and remits US sales tax on behalf of sellers located anywhere in the world when an order is sent to a recipient in the US" (Depop).

The list on that page covers 46 states and the District of Columbia, by year of introduction: Virginia and California in 2020, most states in 2021, Missouri in 2023 and Alaska in 2026. Depop says it "will keep you updated on which states and categories are eligible here on this page," so check it if you're unsure about a particular state.

A few details from the same page:

• Nothing to set up. "No action is required on your part to collect US sales tax from buyers where Depop collects and remits sales tax on your behalf. You don't have to update your sales tax settings in your shop for orders delivered to these states and territories."
• Stop adding tax yourself. Depop says sellers who were adding US sales tax to their listings no longer need to.
• Where you're based doesn't change it. Sellers outside the US who sell to US buyers get the same treatment: "Depop will apply and collect this tax automatically, so you don't need to do anything differently or pay anything extra."

Not on the list: Delaware, Montana, New Hampshire and Oregon. Alaska is the odd one. It is on the list, from 2026, even though "Alaska does not have a state sales tax." Remote sales into its member local jurisdictions go through the Alaska Remote Seller Sales Tax Commission, which "coordinates sales tax collection for remote sales in Alaska" (ARSSTC). Our guide to states without sales tax covers what that means for sellers.

For how Depop compares with the other resale apps, see our thrift and vintage reseller guide and the rest of the platform guides, including Mercari and Poshmark. If you also sell sneakers on StockX or GOAT, our sneaker reseller guide covers those platforms.

How Should You Price Listings and Bundles?

Without the tax. Depop adds the sales tax at checkout, and it tells sellers who were adding tax themselves: "If you've already been calculating and applying US sales tax to your listings, you no longer need to do this." For bundles, Depop says "the price of your bundle will be pre-tax, so remember that when you quote the bundle price to your buyer - tax will be applied automatically at checkout to the item(s)" (Depop).

Buyers see the same thing from their side. Depop tells US buyers it is "legally required to charge sales tax if the US state you're in mandates it, no matter where the seller is located" (Depop).

Selling the other way works differently. "If you're in the US and sell to someone outside the US, there's no US state sales tax on your item," although the buyer may be charged taxes for their own location (Depop).

Does Depop Charge Fees on the Sales Tax?

Yes, the payment processing fee. Sellers based in the US pay no Depop selling fee: "No Depop Selling fees will be charged to sellers based in the UK, US, or AUS." They do pay a US payment processing fee of 3.3% + $0.45, and "the payment processing fee for Depop Payments (via Stripe) is charged on the item sale price plus shipping costs and any applicable taxes" (Depop).

Depop explains why on its sales tax page: "This sales tax is added on to the final purchase price. However, we still need to process the full amount through our payment provider. This means the tax element is included in the total price when calculating the Payment Processing fee" (Depop). The fee comes out before you're paid: "all fees are deducted before your sale proceeds are paid to your bank account" (Depop).

In practice, a sale into a higher-tax area costs you a slightly larger processing fee than the same sale into a lower-tax one, even though the tax itself goes to the state. Depop's fee page shows how to check your fees under Depop Balance, and its sales download includes "fees, shipping, and taxes."

Buyers have a separate fee. Depop's Marketplace Fee is paid by buyers, and Depop's Terms of Service say "in the US, sales tax (where applicable) is payable on the Marketplace Fee" (Depop). That's the buyer's cost, not yours.

What Does Your Depop 1099-K Include?

Unadjusted gross sales, which is usually more than you were paid. Form 1099-K is an IRS information return about payments, not a sales tax form. Depop says that because it processes payments through Depop Payments, it is "required by law to send out a 1099-K tax form to sellers who meet federal or state thresholds," and that sellers who "earned over the $20,000 and 200 transactions federal threshold and/or their state tax threshold will receive an email from Stripe" (Depop). That matches the federal rule the IRS confirmed in October 2025: no 1099-K is required unless gross payments exceed $20,000 "and the number of transactions exceeds 200" (IRS).

What goes into the number matters more. Depop says its form "reports the unadjusted gross sales you received through Depop Payments during the last calendar year," and lists what that includes: "Sales; Shipping; Refunds; Fees paid by the seller, such as payments processing fee; Fees paid by the buyer, including our Marketplace Fee" (Depop). Depop's list doesn't say whether the sales tax buyers paid is included, so check the form against your sales download rather than assuming.

Three more points from Depop's 1099-K page:

• Refunds don't shrink it. "Refunded orders do not reduce your total sales for the year."
• One form per shop. Each qualifying shop gets its own 1099-K, even under the same Social Security number or EIN: "We're unable to combine shop activity at this time."
• Count everything. "Each Depop seller will have to look at all their transactions both on and off platform in a given year to determine their taxable income."

And two from the IRS. "Your state may have a lower reporting threshold for TPSOs, which could result in you receiving a Form 1099-K, even if the total gross payments and transactions did not exceed the federal reporting threshold." And "all income, no matter the amount, is taxable unless the tax law says it isn't – even if you don't get a Form 1099-K" (IRS).

Depop also keeps the two taxes apart: "Sales tax and personal tax are two separate things. We are only responsible for collecting sales tax for items sold on Depop so your personal or business tax return is not affected by this process" (Depop).

Do You Need a Sales Tax Permit if You Only Sell on Depop?

It depends on the state, and on whether you're based there. Depop's Terms of Service put the rest on you: "You are solely responsible for collecting and/or paying any applicable taxes for any purchases or sales you make through our Services" (Depop). Read that alongside the sales tax page: Depop collects on US orders to the states it lists, and anything else is yours. The states answer the permit question differently:

So "Depop collects the tax" and "you don't need a permit" aren't the same thing. Our guide to whether you need a reseller permit to sell online goes through the marketplace-only versus direct-seller split in more detail.

Do Depop Sales Count Toward Nexus Thresholds?

If you're based outside the state, in Texas, California, New York and Washington they do. (If you're based in Texas, New York or Washington, the table above already applies to you.) For a remote seller that sells on its own website and through a marketplace, Texas says "you must include all sales in the safe harbor calculation, including marketplace sales, even if the marketplace provider is collecting and remitting the sales tax" (Texas Comptroller). California counts "your sales facilitated through a marketplace facilitator's marketplace" toward its threshold (CDTFA). New York says marketplace sales "should be included in the calculation" (NY DTF). Washington tells remote marketplace sellers to calculate the threshold "using all of your retail sales to Washington customers, including sales made through a facilitator" (Washington DOR).

This matters most once you also sell outside Depop, through your own site, Instagram DMs, pop-ups or another channel that doesn't collect for you. Your Depop volume can push your combined total over a state's line, and then the direct sales are yours to register for and collect on. Our multi-state sales tax roadmap and the state nexus guides cover each step.

Does eBay Owning Depop Change Anything?

Not for now. eBay announced on July 30, 2026 that it "has completed its acquisition of Depop" (eBay). Depop's own FAQ on the deal says "there are no planned changes to fees or payments at this time," and that accounts aren't being merged (Depop). Depop's sales tax page and fee schedule above are what apply to Depop sales. If you sell on eBay too, our eBay sales tax guide covers that platform.

Frequently Asked Questions

Does Depop collect sales tax?

Yes. Depop calculates, collects and remits US sales tax on orders sent to US buyers in the 46 states and Washington, D.C. on its list, for sellers based anywhere. The tax is added at checkout, and sellers don't need to change any tax settings for those states.

Should I include sales tax in my Depop price?

No. Depop applies the tax automatically at checkout. It says sellers who were adding US sales tax to their listings no longer need to, and that bundle prices are pre-tax.

Does Depop charge fees on sales tax?

Yes, the payment processing fee. US sellers pay no Depop selling fee, but the US payment processing fee of 3.3% + $0.45 is charged on the item sale price plus shipping and any applicable taxes, and fees are deducted before your proceeds are paid out.

Why does my Depop 1099-K show more than I was paid?

Because Depop reports unadjusted gross sales: sales, shipping, refunds, fees paid by the seller and fees paid by the buyer, including the Marketplace Fee. Refunded orders don't reduce the total, and each shop that qualifies gets its own form. Depop files a 1099-K for sellers over $20,000 and 200 transactions, or over their state's threshold.

Do I need a sales tax permit if I only sell on Depop?

It depends on the state and where you're based. California generally doesn't require registration if all of your sales are facilitated by a registered marketplace. Texas doesn't require one from remote sellers with a good-faith certification, but does from sellers based in Texas. New York requires New York-based home businesses that sell solely through a marketplace to hold a Certificate of Authority and file returns even when the marketplace collects.

The Bottom Line for Depop Sellers

Depop handles the sales tax on every order sent to a US buyer in the states on its list, so the checkout is covered. What it doesn't do is waive its processing fee on the tax, shrink your 1099-K to what you actually received, decide whether your home state wants a permit from you, or cover anything you sell elsewhere. Don't add the tax to your prices, reconcile your 1099-K against your sales download, check your own state's rule, especially if you're based in Texas, New York or Washington, where selling only on marketplaces doesn't exempt you from registering, and add up every channel by state once you sell outside the app.

If you sell on Depop and anywhere else, run a free Taxero nexus check across your marketplace and direct sales.

This article is for general information only and is not tax, legal, or accounting advice. Rules change and your situation is specific, so consult a tax professional or the state's own guidance.