eBay 1099-K Thresholds in 2026
The $600 rule you keep hearing about is not the current federal threshold. Here is what actually triggers a 1099-K — and why owing tax doesn't depend on receiving one.
The real federal threshold
| Timeline | Threshold | Status |
|---|---|---|
| 2025 / 2026 (current) | >$20,000 and >200 transactions | In effect |
| Planned $600 single-transaction rule | $600 | Repealed — never took effect |
| Earlier stepped proposals | $5,000 / $2,500 | Withdrawn |
Why you keep hearing "$600"
The rumor has real roots: several states (IL, MD, MA, MO, VT, VA, DC in part) still use $600-or-lower thresholds for their own 1099-K reporting, and the federal $600 plan was widely reported before it was repealed. So a seller in Massachusetts can get a 1099-K at $600 while the federal rule sits at $20k — the rumor survives because both things are true.
No 1099-K? You still report income
This is the part that costs people money: the form is a report, not a tax switch. Your obligation to report income exists whether or not a platform files anything about you. Keep your own records — sales, fees, shipping, cost of goods — which is exactly what our fee & profit spreadsheet is for.
How to prepare as a scaled seller
Track it as you go: QuickBooks
Best if you want bank-connected bookkeeping and quarterly estimated-tax help once selling is a real side business.
Try QuickBooks (sponsored) ↗Lightweight option: FreshBooks
Simpler self-employed invoicing and expense tracking — fits solo resellers who don't need full accounting.
Try FreshBooks (sponsored) ↗Compare: QuickBooks vs FreshBooks for resellers
The quick-answer and threshold comparison blocks stack on mobile; figures re-render from the live fee dataset.
Prefer DIY tracking?
The free spreadsheet records every fee line with the same sourced rates — enough for a Schedule C at hobby scale.
Get the free template →FAQ
Do I have to report eBay income if I didn't get a 1099-K?
Yes. The 1099-K is an information return, not a trigger for taxability. Report your net income either way.
What is the 1099-K threshold in 2026?
Federally: more than $20,000 in gross sales and more than 200 transactions. Some states are lower.
Did the $600 rule go away?
The federal $600 threshold was repealed before taking effect. It lives on in some state rules and in search results.
Does eBay send 1099-K to casual sellers?
Only if you cross the federal thresholds ($20,000 and 200 transactions) or a lower state threshold where one applies.
This page explains reporting rules in general terms and is not tax advice. Numbers reference IRS and state guidance current as of Oct 18, 2026 — consult a tax professional for your situation.