The resale industry has grown exponentially in the past years, and we’re here for it. However, with this growth, there will always be challenges, especially for resellers. That’s why today, we’re gonna talk about something we never imagined would be a thing: the sneaker reseller tax. And well, we’ll talk about the reseller tax in general because why not? So, if you’re interested in becoming a reseller, you will definitely wanna read on and find out what’s new… Shall we?
Reseller Tax, Third-Party Platforms, and Profit!
With all the latest talk about tariffs on imported goods and increased taxes, we can see how things can get confusing. So today, we’re gonna talk about the reseller tax and how you might be affected on platforms like StockX.
First off, you gotta learn about Form 1099-K. If you made more than $5,000 in gross payments for a sale through a third-party platform in 2024, you should expect to receive a Form 1099-K. That threshold dropped to $2,500 in 2025 and will drop to a whopping $600 in 2026 onwards. Mind you, this whole thing is just for US sellers, and it depends on the state that you live in and its regulations.
You see, many states require that StockX report your sales if they exceed the total of $600. This threshold might vary by state. However, StockX is required to file a Form 1099-K report with the IRS in case the gross amount of your transactions is $5,000 or more in 2024. However, as we already mentioned, the number will drop to $600 on all transactions starting 2026. You can read the full report on StockX to learn more about the rules here.
Is Resale Still Worth It?
Believe it or not, it still is. Although it looks a bit bleak, there’s always a huge potential for profit if you know how to choose the right purchase. Now, if you wanna learn how to resell sneakers, we got you covered. But the main thing you should know is that you will definitely need to have a sneaker bot. Don’t worry though, we’re not gonna leave you hanging to dry. This guide will tell you all you need to know about sneaker bots. Who knows? The taxes might rise, but so can your side hustle. Godspeed!
