Whatnot taxes come down to three questions: how much profit you made, whether a Form 1099-K reports your sales, and who handles sales tax. The short answers, as of 17 October 2026: you pay income tax (and usually self-employment tax) on profit, not on what buyers paid; the federal 1099-K applies only above $20,000 and 200 transactions; and Whatnot collects sales tax on its own orders where states require it.
You are taxed on profit, not on gross sales
The number at the top of your Whatnot payouts is not your taxable income. For a seller running regular shows, it is business income reported on Schedule C, and taxable profit is what is left after the costs of earning it. If net earnings from self-employment reach $400 or more, self-employment tax applies too, at a rate of 15.3% (IRS, Schedule SE).
Here is one year for a part-time sports seller with 280 orders. Item sales stayed under $15,000 in every four-week window, so the 8% base commission applied to every order. Buyers paid $17,600 in total once shipping and tax were added.
| Line | Amount |
|---|---|
| Item sales | $15,200.00 |
| Commission, 8% of item sales | −$1,216.00 |
| Processing, 2.9% of $17,600 plus $0.30 × 280 orders | −$594.40 |
| Giveaway shipping paid by the seller | −$540.00 |
| Cost of cards sold | −$9,350.00 |
| Toploaders, sleeves, team bags, mailers | −$310.00 |
| Mileage: 1,000 miles × 72.5¢ + 800 miles × 76¢ | −$1,333.00 |
| Profit | $1,856.60 |
Processing is 2.9% × $17,600 = $510.40, plus 280 × $0.30 = $84.00, for $594.40. Mileage is $725.00 for the first half of the year and $608.00 for the second. Total costs are $13,343.40, so profit is $1,856.60. That is the figure income tax and self-employment tax start from, even though $15,200 of sales went through the app.
The Whatnot fee calculator works out commission and processing order by order, and Whatnot fees explained covers the tiers that took effect on 21 September 2026.
Will you get a 1099-K from Whatnot?
The One Big Beautiful Bill restored the old federal threshold. A payment settlement company files a 1099-K only if your gross payments exceed $20,000 and the number of transactions exceeds 200. The IRS says the change applies retroactively (IR-2025-107 and FS-2025-08), so the planned $5,000 for 2024, $2,500 for 2025 and $600 for 2026 steps never happen.
Three things can still put a form in your mailbox below that line:
- Card payments. The IRS says there is no threshold for payment card transactions. If you take a credit or debit card directly through a card reader at a show, the processor reports it from the first cent.
- State thresholds. Massachusetts uses $600, and Illinois more than $1,000 with four or more transactions, both from state sources. Vermont is $2,000 for 2026. Maryland and Virginia tie theirs to a federal figure that became $2,000 for 2026, but neither state has confirmed that number, so treat it as unverified. Lower figures for DC, Montana and New Jersey appear only in payment processor documentation, not in state law we could find.
- Several platforms. Each platform tests the threshold separately, so a seller on Whatnot, eBay and PayPal can get one form, three or none.
For 2025, Whatnot issued 1099-Ks through Stripe to sellers who cashed out with Stripe and crossed a federal or state threshold. Sellers who cashed out only through PayPal get any form from PayPal. The eligibility status sits in Seller Hub under Finances, then Tax Documents. The full threshold table and a reconciliation walk-through are in the 1099-K guide for card sellers.
A missing 1099-K changes nothing about what you owe. The IRS says income must be reported even when no form shows it.
Sales tax on Whatnot orders
Whatnot’s help page says that where required, it calculates the sales tax, charges the buyer and remits it to the state. Its words: “sellers on Whatnot are not required to collect or remit sales tax on their transactions.” The same page warns that sellers may still have their own registration or reporting duties, and the list of covered states and territories changes, so check the current page rather than relying on a copied list.
What this does not cover:
- Card shows and in-person sales. Cash or card sales at a table are yours to tax. See card show sales tax.
- Direct sales outside the app, such as a deal finished over a payment app after a show.
- Your own purchases. Buying sealed product or singles for resale without paying sales tax works through a resale certificate given to your supplier, covered in the card show guide.
Sales tax that Whatnot collects is not your income. Keep it out of your sales figure in the ledger.
Some states tax Whatnot’s fees
Whatnot charges sales tax on its own fees in a few places, according to its help article on taxes on commissions and fees (edited 17 July 2026):
| Fee | States where Whatnot adds tax |
|---|---|
| Commission | DC, HI, NM, WV |
| Payment processing | CT, HI, NM, OH, SD, TX, WV |
A Texas seller, for example, pays tax on the processing fee but not on commission. That tax is part of what Whatnot deducts from your payout, so record it with the fee it relates to.
What a business seller can deduct
For a seller in business, these are the usual cost lines:
- Cost of cards sold. What you paid for the singles, slabs, packs, boxes and break spots that produced the cards you sold. Unsold inventory is not deducted until it sells.
- Whatnot fees. Commission, processing and any tax on fees, all shown per order in the Weekly Orders Report.
- Giveaway shipping. Giveaways carry no commission because the price is $0, but the seller pays the label.
- Shipping you cover. Free or discounted shipping you offer and label adjustments. Buyer-paid prepaid labels are not your cost.
- Supplies. Toploaders, penny sleeves, team bags, bubble mailers, card savers, grading submission fees on cards you sell.
- Mileage. For 2026, 72.5 cents a mile from 1 January to 30 June and 76 cents from 1 July (IRS Notice 2026-10 and Announcement 2026-11). A 120-mile round trip to a card show costs $87.00 in March and $91.20 in August. Keep a log of date, purpose and miles.
Hobby sellers are in a different position. The IRS treats hobby income as reportable, but hobby expenses are miscellaneous itemized deductions, and that deduction is now suspended permanently. The cost of the cards themselves is still subtracted when you work out gross income. The IRS is inconsistent on where hobby income goes: Publication 525 says Schedule 1, line 8j, while its 1099-K page says Schedule C. The factors that decide which side you fall on are in hobby vs business for card sellers.
Records to keep
The profit figure is only as good as the records behind it. Keep:
- Weekly Orders Reports. Download from Financials, then Statements. Each order carries the Commission Fee and Payment Processing Fee, which gives you the fee lines without guessing. Show Reports (Shipments, then the show, then Export Show Report) list what sold but carry no fees.
- Purchase receipts for every box, case, lot and break spot, with date and price.
- A break allocation. A $480 hobby box that produced one hit and 200 base needs its cost split across the cards before any of them sells. Relative market value is the method most CPAs suggest, though there is no IRS rule specific to pack pulls. The card break cost basis guide explains the methods and the break cost allocator does the split.
- A mileage log and supply receipts.
- Monthly or annual Seller Statements, which Whatnot provides to all sellers, to check your totals against Whatnot’s.
Pullsheet imports Weekly Orders Reports into the sales tab and keeps everything in your browser, with the year’s figures on the profit and loss tab.
Selling on eBay too
eBay taxes follow the same income tax rules. The 1099-K test is identical, profit is still sales minus costs, and the deductible lines are the same. The difference is in the fee data: eBay charges its final value fee on the total including shipping and sales tax, and its Orders report carries no fees, so pull fees from the Transaction report. eBay trading card fees has the rates.
This guide explains the rules as of 17 October 2026; it is not tax advice, so check your situation with a tax professional.