What's Changing. Starting August 27, 2025, items valued at US$500 or above (including shipping fee) for shipping to the United States will require additional seller enablement on eBay. Note: This updates our prior threshold of US$2,500; all other terms remain the same.
Getting Form 1099-K from eBay
If your sales hit the payment threshold, eBay must prepare and send 1099-K copies to the IRS and to you by January 31 of the following year. IRS 1099-K payment reporting thresholds by year: $5,000 in 2024. $2,500 in 2025.
For 2025, the IRS requires eBay and other online marketplaces to report total sales exceeding $20,000 and 200 transactions on Form 1099-K. Use the Form 1099-K that eBay sends to you when determining whether you have taxable income from the sale of goods or services.
The short answer is a resounding yes, and the reasons why might surprise you. Despite the competition, eBay continues to be a powerhouse. As of the first quarter of 2025, the platform boasts 134 million active buyers and around 18 million sellers, with nearly 2 billion live listings at any given time.
For a $100 sale on eBay, expect fees around $14 to $16, primarily a 13.6% Final Value Fee on the total sale (item + shipping + tax), plus a $0.40 per-order fee, varying slightly by category (e.g., higher for media, lower for some electronics/sneakers). So on a $100 item with $10 shipping ($110 total), you'd pay roughly $14.40-$15.84 in fees, leaving you with around $94-$95, depending on the exact category.
For the 2025 tax year, you'll generally receive a Form 1099-K from platforms like eBay, Etsy, and payment apps if you have over $20,000 in gross payments AND more than 200 transactions, but you must report all income (even small amounts) if it's for goods/services, as you're taxed on profit, not just when you get a 1099-K, with lower state thresholds possible.
When you can ask eBay to step in. Once the buyer has let you know that they have an issue, you have 3 business days to respond with a resolution. After that, if the matter hasn't been resolved, either of you can ask us to step in and help.
For tax year 2025, if you have over $20,000 in combined payments and more than 200 transactions between the two accounts, you'll receive a separate Form 1099-K for each account.
As a UK resident, when you sell over £1,707 or more or complete 30 or more sales transactions within a calendar year, eBay is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. eBay will notify you when you have crossed these thresholds.
Registration of new accounts in order to circumvent sales limits on eBay is prohibited. In this case, all of your accounts may be suspended indefinitely. If you have more than one seller account, you may also be able to raise your limits by linking to your other, more established seller account.
Yes, we have a buyer exemption system that allows you to submit tax exemption certificates to eBay and make purchases without paying tax. Upload your tax exemption certificate. Learn more about eBay's Buyer Exemption program for sales tax.
If you list more than 250 items per month, you'll start paying a $0.35 insertion fee per listing. Category exclusions apply.
Can You Sell on eBay Without an SSN? Now that you know why eBay requires sellers to provide their SSNs, you might be curious if you can still sell on eBay without one. The rule clearly states that you must provide your SSN if you earn more than $6,000 per year in product sales.
For the 2025 tax year (filing in 2026), significant changes from the "One Big Beautiful Bill Act" (OBBBA) make many Tax Cuts and Jobs Act (TCJA) provisions permanent, increase the Standard Deduction, expand the Child Tax Credit to $2,200, boost the SALT cap to $40k (for most), and introduce new deductions for tips, overtime, and auto loan interest, alongside changes to business deductions like 100% bonus depreciation.
If your eBay sales add up to more than $20,000 in more than 200 transactions in a year, eBay will send you a Form 1099-K. This form reports your earnings to the IRS, ensuring it's aware of your sales activity. When you receive a Form 1099-K, it means that the IRS expects you to report this income on your tax return.
If your item doesn't sell, you will not be charged any final value fees.
Between confusing fee changes, delayed payments, and strict listing rules, it's becoming harder and harder to sell without feeling squeezed out.