Thrift & Vintage Reseller Sales Tax Guide: Poshmark, Mercari & More

Here's the direct answer: if you resell thrifted or vintage finds on Poshmark, Mercari, Depop, Etsy or eBay, the platform calculates, collects and sends in the sales tax on those sales for you. The buyer pays it at checkout on top of the price, so it isn't taken out of the sale amount. What the platforms don't cover is everything else. That means sales at pop-ups, flea markets and vintage fairs, deals closed in Instagram DMs, and in some states the permit itself. In Texas, for example, a reseller who lives there needs a permit even if every sale goes through a marketplace.

The other thing thrift resellers get wrong is assuming "used" means "untaxed." It doesn't. Whether clothing is taxed depends on the state, not on whether it's secondhand, and that matters for every sale you handle yourself. This guide walks through both.

Key Takeaways

• Poshmark, Mercari, Depop, Etsy and eBay all collect and remit sales tax on the sales they process, in the states each lists on its own help pages.
• Used items are generally taxed like new ones. Poshmark says sales tax applies "regardless of whether the property being sold is new or used" (Poshmark).
• A handful of states exempt most clothing, or clothing under a price cap, including Pennsylvania, New Jersey, Minnesota, Vermont, and New York, Massachusetts and Rhode Island up to a limit. Fur, accessories and some formalwear are often taxed anyway.
• Selling at a flea market or vintage fair usually needs a permit. In California that's a temporary seller's permit per location if you don't already hold a seller's permit, or a sub-permit per location if you do. In Texas it's the regular permit.
• Buying inventory to resell takes you out of Texas's occasional-sale exemption, whatever your volume.

Who Collects Sales Tax When You Resell Thrift Finds Online?

The platform does. Each of the major resale platforms says it handles sales tax on the orders it processes, in the states it lists:

On these sales the tax is the buyer's cost. Poshmark says its calculation looks at the type of item, the buyer's delivery address, the seller's return address and shipping costs (Poshmark). That's why the same pair of jeans can carry different tax for two buyers.

One Texas-specific wrinkle shows up in your payout, not the buyer's. Since October 1, 2025, Poshmark has applied a "Texas Seller Fee Tax" to sellers with a Texas return address. The page says: "Poshmark is required to apply this additional tax to 80% of the seller fee on sales made by sellers with a return address in Texas" (Poshmark). It's a tax on Poshmark's fee, not on your buyer's purchase.

For platform-by-platform detail, see our guides to Poshmark, eBay and Etsy, and the full platform guides hub.

Is Used or Vintage Clothing Taxable?

Usually, yes. Secondhand status doesn't create an exemption on its own. Poshmark puts it plainly: sales tax "is generally imposed on all sales of tangible personal property (e.g., clothing, shoes, accessories) regardless of whether the property being sold is new or used" (Poshmark). State agencies say the same. Texas lists clothing and shoes as examples of items on which sales tax is normally due when you sell them (Texas Comptroller). California says people who sell "new or used merchandise" generally need a seller's permit (CDTFA).

What does change the answer is the item type and the state, which is where clothing exemptions come in.

Which States Don't Tax Clothing?

A few states exempt most clothing, and a few more exempt it up to a price per item. None of the state pages below carves out used clothing, and Vermont says outright that its exemption covers clothing sold by a consignment shop. For thrift and vintage sellers, the exceptions matter as much as the rule:

A few things vintage sellers in particular should notice:

• Fur is taxed where clothing isn't. Pennsylvania, New Jersey and Minnesota all keep fur taxable.
• Formalwear splits. Pennsylvania taxes formal apparel; New Jersey's exemption list includes it.
• Designer pieces hit caps and surcharges. A vintage coat over $175 in Massachusetts or $250 in Rhode Island is taxed on the excess. A designer bag or watch over $1,000 in Connecticut is taxed at 7.75%.
• New York is state-only. The $110 exemption doesn't apply to local tax unless the locality chooses it, so the rate depends on the buyer's county.

When this matters to you: on marketplace sales, the platform works out the tax, and Poshmark says it considers the type of item. The clothing rules land on you for sales you collect yourself: pop-ups, fairs, your own site, DMs. If you're registered in one of these states, charge accordingly. Each state's nexus guide covers its registration rules, for example Pennsylvania, New Jersey and Minnesota.

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

It depends on the state, and sometimes on where you live.

• California: if all of your retail sales are facilitated by a registered marketplace facilitator, you're generally not required to register (CDTFA).
• Texas, remote sellers: a remote seller, which Texas defines as "an out-of-state seller whose only activity in Texas is the remote solicitation of sales", who only sells through a marketplace doesn't need a permit "if you have received and accepted in good faith a certification that the marketplace provider will collect sales and use tax," but must keep records of marketplace sales for at least four years. If a marketplace stores your inventory in Texas and you're above the $500,000 safe harbor, you "must obtain a tax permit and collect tax on your sales" (Texas Comptroller).
• Texas, if you're based there: you need a permit even if every sale is on a marketplace: "As a Texas seller, you have physical presence in Texas and must have an active sales and use tax permit" (Texas Comptroller).

Marketplace volume matters once you also sell outside the marketplaces: your own site, DMs, or orders taken at a fair and shipped. Texas tells a remote seller who sells on a website and through a marketplace that it "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 says you must register once you pass its threshold "unless all of your sales for delivery in California are facilitated by marketplace facilitators" (CDTFA). So a reseller with a little direct selling on top of Poshmark, Mercari and Depop volume can cross a line without any single channel looking big. An out-of-state seller whose sales all run through collecting marketplaces generally doesn't have to register in those two states, even above the threshold. The exception is Texas, if a marketplace stores your inventory there. And if you live in Texas, you need a Texas permit either way (see above).

Our guide to whether you need a reseller permit to sell online goes through the marketplace-only versus direct-seller split. The multi-state sales tax roadmap covers the whole process once you do need to register.

What About Pop-Ups, Flea Markets and Vintage Fairs?

In-person selling is where thrift resellers most often need their own permit, because no marketplace sits between you and the buyer.

California treats selling at one location for under 90 days as temporary selling: "if you will be selling items at a location for less than 90 days, you are considered a temporary seller, and are required to hold a temporary seller's permit" (CDTFA). The permit is free. Even if you already hold a regular seller's permit, you "need to register for a sub-permit for the temporary location where you will sell your goods" (CDTFA). Swap meet and flea market operators must collect written documentation from sellers, and "may not rent space to sellers unless they give you the written documentation" (CDTFA), so expect to be asked for it.

Texas has event sellers, including out-of-state ones, use the regular sales and use tax permit, and collect tax at the event's local rate (Texas Comptroller). The occasional-sale exemption "does not apply to flea markets, arts and crafts shows, or other similar 'community-wide'-type events that are coordinated or produced by a third party, if you are required to pay a fee or commission to participate in the event" (Texas Comptroller). A paid booth at a vintage market therefore counts as selling in business. The same publication notes that a market's promoter "can be liable for taxes on sales made by sellers without a permit," and that at antique and craft malls both the mall and each seller need permits.

Common mistake: treating a monthly flea market booth like a garage sale. The rules for the two are different, which is the next question.

Garage Sale or Reselling Business: Where's the Line?

Many states exempt occasional sales by people who aren't in business. Resellers usually fall outside those rules, because buying to resell is the business.

• Texas exempts an occasional sale of one or two taxable items in a 12-month period, or personal-use items totalling $3,000 or less in a calendar year. But you don't qualify if you hold or must hold a permit, if you're engaged in business, or if "you buy, barter or trade taxable items to resell" (Texas Comptroller).
• California defines an occasional sale as one made when "you are not required to hold a seller's permit and you make no more than two sales in a 12-month period" (CDTFA). California generally requires a seller's permit once you make three or more sales of taxable items in a 12-month period (CDTFA).

Clearing out your own closet can qualify. Sourcing at thrift stores and estate sales to flip generally doesn't.

Can You Buy Thrift Inventory Tax-Free?

Once you're registered in a state, you can generally give suppliers a resale certificate instead of paying sales tax on inventory you'll resell. Our explainer on resale certificates covers how they work.

At thrift stores, expect friction, because stores have to be careful about which certificates they accept. Connecticut, for example, tells retailers they "may only accept a resale certificate in good faith from the issuer" (Connecticut DRS). Texas tells sellers not to accept one "if you know or have reason to believe the property is being purchased for other than resale" (Texas Comptroller). If you hold a Texas permit and a vendor won't honor your resale certificate, the Comptroller tells Texas sellers they "can take a credit on your next sales tax return or request a refund" (Texas Comptroller).

Is the 1099-K a Sales Tax Form?

No. Form 1099-K is an IRS information return about payments you received, and it has nothing to do with sales tax. Payment apps and online marketplaces generally aren't required to file one unless your payments exceed $20,000 and your transactions exceed 200 (IRS), and your state may set a lower reporting threshold (IRS).

If some of what you sold was your own stuff at a loss, the IRS says "a loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it" (IRS). And the form isn't what creates the obligation: "Even if you don't get a Form 1099-K, if you received payments for goods, services or property, you must report your income" (IRS).

Frequently Asked Questions

Do resale apps collect sales tax on used clothing?

Yes, on the sales they process. Poshmark, Mercari, Depop, Etsy and eBay each say they calculate, collect and remit sales tax on orders in the states they list, and the tax is added to the buyer's total. Used clothing is generally taxed like new unless the buyer's state exempts clothing. Our Poshmark sales tax guide covers that platform in detail.

Is used clothing taxable?

Generally, yes, in states that tax clothing. Being secondhand doesn't make an item exempt. A few states, including Pennsylvania, New Jersey, Minnesota and Vermont, exempt most clothing whether new or used, and New York, Massachusetts and Rhode Island exempt it up to a price per item.

Do I charge sales tax at a flea market or vintage fair?

Usually, yes. In California you generally need a temporary seller's permit for each location where you sell for less than 90 days if you don't already hold a seller's permit, or a sub-permit for each location if you do. In Texas you need the regular permit, and a paid booth at a flea market or show takes you out of the occasional-sale exemption.

I live in Texas and only sell on Poshmark and Mercari. Do I need a permit?

Yes. The Texas Comptroller says a seller who lives in Texas and sells only through a marketplace has physical presence in Texas and must have an active sales and use tax permit, even though the marketplace collects the tax.

Do my Poshmark and Mercari sales count toward other states' thresholds?

They count, but for an out-of-state, marketplace-only seller they usually don't trigger anything in Texas or California. Both states count marketplace sales toward their $500,000 thresholds, and that matters once you also sell direct. An out-of-state seller whose sales all run through collecting marketplaces generally doesn't need to register in either state, unless a marketplace stores your inventory in Texas. If you live in Texas, you need a Texas permit either way. If you sell outside the apps too, add up your sales across every channel, by state.

The Bottom Line for Thrift and Vintage Resellers

The platforms have the checkout covered. Poshmark, Mercari, Depop, Etsy and eBay collect sales tax on the sales they process. What's left is yours. Used goods are taxed like new ones unless the state exempts that kind of clothing. In-person selling usually needs a permit. Some states, Texas included, want a permit from residents even when every sale is on a marketplace. And once you sell outside the apps too, your volume adds up across every channel.

The most useful next step is knowing where your combined sales stand. 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.