Self-employment tax
15.3% on your Marketplace net profit (Social Security + Medicare). You can deduct half of this amount before calculating your federal income tax, partially offsetting the burden.
Facebook Marketplace tax calculator
Facebook Marketplace tax calculator for 2026
Enter your Facebook Marketplace gross sales, selling fees (5% for shipped items, $0 for local pickup), 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 Facebook Marketplace income is taxed in 2026
Facebook Marketplace sellers who sell regularly with a profit motive 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. Facebook does not withhold taxes from your sales proceeds — you are responsible for tracking all earnings and making estimated payments throughout the year.
Federal income tax
Taxed at your bracket (10% to 37%). Marketplace profit stacks on top of wages or other income, which can push you into a higher bracket as your sales grow.
State income tax
Varies by state. Nine states have no personal income tax on self-employment earnings. Most others treat Facebook Marketplace income similarly to federal with different rates.
Facebook Marketplace seller fees and what they mean for taxes
Facebook Marketplace has a unique fee structure compared to other resale platforms. Understanding it is important for calculating your deductible expenses accurately.
Shipped sales — 5% fee (or $0.40 minimum)
When you ship an item through Facebook Marketplace's checkout, Facebook charges a 5% selling fee. For items priced at $8 or less, the minimum fee is $0.40. This fee is fully deductible as a business expense on Schedule C.
Local pickup — no fee
For in-person transactions arranged through Marketplace and completed locally, Facebook charges no selling fee. This is a significant advantage for local flippers and furniture resellers. You still owe income tax on your profit, but your only deductible expense from the platform is $0 — your COGS and mileage become your primary write-offs.
Facebook Marketplace tax estimates at common sales levels (2026)
These estimates assume Facebook's standard 5% fee on shipped sales and a solo filer with no state income tax. Local pickup sellers will have lower fees and higher net profit. Use the calculator above for a personalized estimate.
| Gross Marketplace Sales | FB Fees (5%) | Est. COGS | Net Profit | Est. Total Tax | Notes |
|---|---|---|---|---|---|
| $2,000 | $100 | $800 | $1,100 | $207 | Casual declutterer (shipped) |
| $6,000 | $300 | $2,400 | $3,300 | $728 | Part-time reseller |
| $15,000 | $750 | $6,000 | $8,250 | $2,100 | Active Marketplace seller |
| $30,000 | $1,500 | $12,000 | $16,500 | $4,735 | Full-time seller |
Estimates assume single filer, 2026 tax year, no state income tax, shipped sales at 5% fee. Includes SE tax deduction. Actual amounts will vary.
Facebook Marketplace deductions that reduce your taxable income
Deductions are the fastest way to cut your Facebook Marketplace tax bill. Here are the most valuable write-offs for 2026:
Cost of goods sold (COGS)
The original price you paid for furniture, electronics, clothing, or other items you resold on Marketplace. This is typically the largest deduction. Keep every sourcing receipt — estate sales, thrift stores, garage sales, and other resale purchases all count.
Facebook selling fees
Facebook's 5% fee on shipped sales is fully deductible as a business expense on Schedule C. For local pickup sales where you paid $0 in fees, there is nothing to deduct from this category.
Shipping costs and supplies
Postage, boxes, bubble wrap, tape, and other packaging materials used to ship orders are deductible. If you use Facebook's prepaid shipping, the fee is already factored into the 5% platform charge.
Mileage for pickup and delivery
Miles driven to source items (thrift stores, estate sales, liquidators) and miles driven to meet local buyers for in-person handoffs are deductible. The 2026 IRS standard mileage rate is $0.67 per mile.
Home office or storage space
A dedicated area used exclusively for your Marketplace inventory, staging, or photography qualifies for the home office deduction — either the simplified $5/sq ft method or actual expenses.
Apps and software
Cross-listing software, inventory apps, photo editing tools, and tax software are deductible when used for your Marketplace resale business.
Facebook Marketplace sellers must pay quarterly estimated taxes
If your Marketplace 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.
See the full 2026 quarterly payment calendar → Advertisement Facebook Marketplace tax calculator lower ad
Facebook Marketplace tax calculator — frequently asked questions
How is Facebook Marketplace income taxed in 2026?
Facebook Marketplace income from regular selling with a profit motive is taxed as self-employment income. You owe self-employment tax (15.3% on net profit up to $176,100 in 2026) plus federal income tax at your marginal bracket. For shipped sales, Facebook's 5% selling fee is deductible. For local pickup sales with no fee, your cost of goods and any related expenses are still deductible against your gross sales.
Does Facebook send a 1099-K for Marketplace sales?
Yes. Meta (Facebook) issues a 1099-K once your Facebook Marketplace 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 are still required to report all profit on your tax return. The IRS expects you to self-report all self-employment income regardless of whether a 1099-K was issued.
What is the Facebook Marketplace seller fee?
Facebook charges a 5% selling fee per shipment on items you ship through Marketplace (or a flat $0.40 for shipments of $8 or less). For local pickup transactions completed in person, there is no Facebook Marketplace fee. This fee difference makes Facebook Marketplace one of the lower-cost resale platforms for sellers who operate locally, though you still owe income tax on all profit regardless of the fee rate.
What can Facebook Marketplace sellers deduct on their taxes?
Key deductions for Facebook Marketplace sellers include: cost of goods sold (what you originally paid for items), Facebook's 5% fee on shipped sales, shipping costs and packaging supplies, mileage driven to pick up or deliver items locally, a home office or storage space used exclusively for your resale business, and any apps or software used to manage your listings and inventory.
Do I need to pay quarterly estimated taxes on Facebook Marketplace income?
Yes, if your Facebook Marketplace activity will generate $1,000 or more in taxes for 2026. The 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 the full amount owed by April 15 filing.
More reseller tax resources
Get your Facebook Marketplace taxes right
Tax software built for resellers — tracks fees and deductions automatically.
Once you have your estimate, use software that keeps Marketplace fees, sourcing receipts, mileage, and inventory costs organized so quarterly payments and April filing are straightforward.
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