How much tax do I pay on Poshmark income?

You pay 15.3% self-employment tax plus federal income tax on your net profit — not your gross sales. Net profit is your sale price minus Poshmark's commission (20% on sales of $15+, a flat $2.95 under $15) minus what you originally paid for the inventory (cost of goods sold).

Does Poshmark send a 1099-K?

Poshmark issues a 1099-K if your gross sales exceed $20,000 and you have more than 200 transactions in a year, per the federal threshold restored by the 2025 OBBBA law. Some states (including Massachusetts, Vermont, and Virginia) require it at much lower thresholds. The 1099-K reports gross sales before Poshmark's commission and before your cost of goods — it is not your taxable profit.

What is cost of goods sold (COGS) for a Poshmark seller?

COGS is what you originally paid for the items you sold — thrift store receipts, wholesale invoices, or clearance prices. You subtract COGS from your revenue after Poshmark's commission to get your taxable net profit. Selling your own used clothing for less than you paid is generally not taxable income.

When are quarterly taxes due for Poshmark sellers in 2026?

Quarterly estimated tax due dates for 2026: April 15, June 16, September 15, and January 15, 2027. Pay if you expect to owe $1,000 or more for the year.

Poshmark Tax Calculator 2026 — $60K Sales = $3,888 Tax Owed

Poshmark Tax Calculator 2026IRS Schedule SE

State of Residence

Filing Status

Annual Gross Poshmark Sales (USD)

The total buyers paid you — this matches the amount on your 1099-K, before Poshmark's commission.

Cost of Goods Sold (USD)

What you originally paid for the items you sold — thrift, wholesale, or clearance receipts. This is not on your 1099-K but it reduces your taxable profit.

Calculate Poshmark Tax Estimate

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✅ KEY TAKEAWAYS

On $60,000 gross sales with $25,000 in cost of goods, net profit is $23,000 — owing approximately $3,888 total tax in 2026
Quarterly estimated payment: $972 due April 15, June 16, Sep 15, Jan 15
The 1099-K reports gross sales, not your profit — Poshmark commission and cost of goods come off first
Federal 1099-K threshold: $20,000 and 200+ transactions — some states require it far lower
Selling your own used clothing for less than you paid is generally not taxable

2026 Tax Summary — Poshmark

Poshmark resellers pay 15.3% self-employment tax plus federal income tax on net profit — sales minus Poshmark's 20% commission minus cost of goods sold, not gross sales. On $60,000 gross sales with $25,000 COGS: net profit $23,000 → approximately $3,250 SE tax + $638 federal income tax = $3,888 total tax. Quarterly estimated payment: $972.