Self-employment tax
15.3% on your Depop net profit (Social Security + Medicare). You can deduct half of this amount before calculating your federal income tax, which partially offsets the burden.
Depop seller tax calculator
Depop seller tax calculator for 2026
Enter your Depop gross sales, Depop fees (10% selling fee), and cost of goods sold below to calculate your estimated self-employment tax, federal income tax, and quarterly payment amounts. Updated for 2026 tax rates.
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Estimated tax on side hustle profit
$2,687.29
Profit after deductions: $13,323.00
Total deductions$2,677.00
Self-employment tax$1,882.48
Federal income tax$0.00
State estimate (CA)$804.81
Effective rate16.8%
Quarterly payment target$671.82
Next four due dates
Q1 due April 15, 2026
Income earned Jan 1 to Mar 31, 2026
Q2 due June 15, 2026
Income earned Apr 1 to May 31, 2026
Q3 due September 15, 2026
Income earned Jun 1 to Aug 31, 2026
Q4 due January 15, 2027
Income earned Sep 1 to Dec 31, 2026
Before you file
Set aside $671.82 each quarter so this estimate does not become a deadline surprise.
Tax filing handoff
TaxSlayer Self-Employed is the stronger next step once the estimate turns into a real filing number.
Use the calculator to set your target, then move into a filing flow built for Schedule C income, self-employment tax, quarterly payments, and common 1099 forms.
This site may earn affiliate commissions from links on this page. We only recommend software we'd use ourselves.
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How Depop income is taxed in 2026
Depop sellers who run their shop as a business owe two types of federal tax on net profit: self-employment tax (15.3% up to $176,100 in 2026) and federal income tax at their marginal bracket. Depop does not withhold taxes from your payouts — you are responsible for tracking all earnings and making estimated payments throughout the year.
Federal income tax
Taxed at your bracket (10% to 37%). Depop profit stacks on top of wages or other income, which can push you into a higher bracket as your shop grows.
State income tax
Varies by state. Nine states have no personal income tax. Most others treat Depop self-employment income similarly to federal with different rates and brackets.
Depop tax estimates at common sales levels (2026)
These estimates assume Depop's standard 10% seller fee and a solo filer with no state income tax. Your actual result depends on your deductions — use the calculator above for a personalized estimate.
| Gross Depop Sales | Depop Fees (10%) | Est. COGS | Net Profit | Est. Total Tax | Notes |
|---|---|---|---|---|---|
| $1,500 | $150 | $600 | $750 | $141 | Casual vintage seller |
| $5,000 | $500 | $2,000 | $2,500 | $552 | Regular Depop seller |
| $15,000 | $1,500 | $6,000 | $7,500 | $1,899 | Active Depop business |
| $35,000 | $3,500 | $14,000 | $17,500 | $4,999 | Full-time Depop reseller |
Estimates assume single filer, 2026 tax year, no state income tax. Includes SE tax deduction. Actual amounts will vary.
Depop deductions that reduce your taxable income
Tracking deductions is the fastest way to cut your Depop tax bill. Here are the most impactful write-offs for 2026:
Cost of goods sold (COGS)
The original price you paid for clothing, sneakers, or vintage items you resold on Depop. This is typically your largest deduction. Keep every sourcing receipt — thrift store, consignment, or online marketplace.
Depop selling fee
Depop's 10% seller fee is fully deductible as a business expense on Schedule C. If you use Depop Payments, the payment processing fee is also deductible.
Shipping costs and supplies
Postage, poly mailers, boxes, tissue paper, and tape used to ship Depop orders are deductible. If buyers pay shipping separately, your net cost (what you pay the carrier minus what the buyer paid) is deductible.
Mileage for sourcing
Every mile driven to thrift stores, estate sales, consignment shops, or the post office for your Depop business counts. The 2026 IRS standard mileage rate is $0.67 per mile.
Home office or storage space
A dedicated room or area used exclusively for Depop inventory, photography, or order management qualifies for the home office deduction — either the simplified method ($5/sq ft) or actual expenses.
Apps and software subscriptions
Cross-listing tools, photo editing apps, inventory management software, and tax software are deductible when used for your Depop resale business.
Depop sellers must pay quarterly estimated taxes
If your Depop income will generate $1,000 or more in taxes this year, the IRS expects four estimated payments. The 2026 deadlines are April 15, June 16, September 15, and January 15, 2027. Missing even one deadline triggers an underpayment penalty regardless of whether you pay in full at April filing.
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Depop seller tax calculator — frequently asked questions
How is Depop income taxed in 2026?
Depop seller income is taxed as self-employment income if you sell regularly with a profit motive. That means you owe self-employment tax (15.3% on net profit up to $176,100) plus federal income tax at your marginal bracket. Depop's 10% selling fee is fully deductible, so you are only taxed on your actual net profit after fees and cost of goods.
Does Depop send a 1099-K in 2026?
Yes. Depop is required to issue a 1099-K once your gross sales exceed $5,000 in 2025. The threshold is scheduled to drop to $600 under current IRS rules in future years. Even if your sales are below the 1099-K threshold, you still owe tax on any profit from your Depop sales — the IRS requires you to self-report all income.
What can Depop sellers deduct on their taxes?
Key Depop deductions include: cost of goods sold (what you originally paid for items you resold), Depop's 10% selling fee, shipping costs and packaging supplies, mileage driven to thrift stores or post offices, a home office or storage space used exclusively for your Depop business, and any software or apps (cross-listing, photo editing, inventory tracking) used to run your shop.
Do I need to pay quarterly estimated taxes on Depop income?
Yes, if your Depop activity will generate $1,000 or more in taxes for 2026. Quarterly due dates are April 15, June 16, September 15, and January 15, 2027. Missing a payment triggers an IRS underpayment penalty even if you pay everything owed by April 15 filing.
Is my Depop shop a hobby or a business for tax purposes?
If you sell on Depop consistently with the intent to profit, the IRS treats it as a business on Schedule C — letting you deduct all ordinary business expenses. Hobby status severely limits your deductions. Key IRS factors include: do you sell regularly, do you track expenses and keep records, do you depend on the income, and have you made a profit in at least two of the last five years?
More reseller tax resources
Get your Depop taxes right
Tax software built for resellers — tracks fees and deductions automatically.
Once you have your estimate, use software that keeps Depop fees, sourcing receipts, mileage, and inventory costs organized so quarterly payments and April filing are straightforward.
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