Tax-Free Up to 480,000 Yen Per Year: Tax Rules for Selling Unwanted Items on Mercari and the Pitfalls of Being Treated as a Business

Hello!
I'm Mercaku.

"Do I need to file a tax return if I sell on Mercari?"
"Do I have to pay taxes even if I'm just selling unwanted items?"
"At what point am I treated as a business?"

Many of you may have these questions.

Today, I will explain Mercari's tax issues and the correct knowledge about them.

Actually, if you are just selling unwanted items on Mercari, it is basically tax-free.

"Wait, so I don't need to file a tax return?"

You might be thinking that.

However, there is a pitfall here,

if you don't have the right knowledge, you could be treated as a business and end up losing money

instead.

In particular, with the Mercari terms of service revision on October 22nd,

"Prohibition of business use of personal accounts"

was explicitly stated,

so the possibility of being treated as a "business" for tax purposes is increasing.

Let's study this thoroughly today so you don't end up losing money by being taxed on items that were just unwanted goods.

"Selling unwanted items" is basically tax-free

First, I will explain the taxes on selling unwanted items.

If what you sold on Mercari is a personal item or household good you were using,

the sales are in principle tax-free

In other words, you don't need to file a tax return.

So, you're thinking, "Wait, does that mean I don't have to worry about anything?"

I'm sure you are.

Please rest assured that, in principle, even if your profit from sales exceeds 200,000 yen per year,

it is not taxed if it falls within the scope of household goods.

Household goods refer to

items used normally in daily life.This refers to things like

For example,

furniture, home appliances, clothes, shoes, bags, children's toys, and daily necessities.

These are the types of items that qualify.

Surprisingly, many people don't know this.

However,be careful with expensive precious metals and works of art.

Items worth more than 300,000 yen each

may be subject to taxation.

For example,

• reselling a Louis Vuitton bag at a high price

• selling a Rolex watch

• selling jewelry

In these cases, you need to be careful because the tax authorities might come knocking.

In short, to summarize

• "selling things you used yourself"

• "Not purchased for resale"

If you meet these two conditions, you generally do not need to file a tax return.

"Buying to sell" may be considered a business or miscellaneous income

On the other hand,

• "Buying to sell"

• "Selling handmade items"

• "Continuously reselling items"

In these cases, it is considered for-profit and

becomes subject to taxation.

I'm going to talk about some slightly complicated things, but please try to keep up.

Income is mainly classified into one of two types.

1. Miscellaneous income

This is income from side jobs

that are not continuous or are small in scale.

2. Business income

For continuous and business-like activities

this applies if you are doing full-scale product sales

In either case,

if your profit exceeds 200,000 yen per year, you must file a tax return

However, this is limited to those who have a salary, so

For those without a salary, such as full-time homemakers or students,

exceeding 480,000 yen makes you subject to tax filing

This is important, so you need to keep it in mind.

It's the same in relationships.

"I'm just dating for fun"

even if you think that,

if the other person thinks "we're dating seriously"

then it's going to cause trouble, right?

Mercari is the same,

"I'm just doing this as a side hustle"

even if you think that,

if the tax office decides "this is a business, isn't it?"

then,

you will be taxed on business income.

Beware of Resident Tax and Getting Caught with a Side Hustle

For company employees, if you are taxed on business income,
there are cases where you get caught due to an increase in resident tax.

If your company prohibits side hustles, that's a nightmare.

By the way, I remember being caught twice for having a side hustle at a company that prohibited them, and being thoroughly grilled in the room of love and lectures.

Ugh, such bittersweet memories.

But, that's what's good about it!!

How to avoid getting caught when side jobs are prohibited:

• Select "Ordinary collection (pay resident tax yourself)" on your tax return

• If your side job profits exceed a certain amount, manage them accurately using a tax accountant or accounting software

These points become important, so

if you are doing Mercari while side jobs are prohibited, make sure to keep this in mind.

Relationship with the Mercari Terms of Service revision

Frighteningly,

with the Mercari Terms of Service revision on October 22, 2025,

"Prohibition of personal account use by businesses"

was explicitly stated.

In other words,

• "Purchasing to resell"

• "Continuous selling"

people who do this are highly likely to betreated as a business.

At the same time, the likelihood of it beingviewed as taxable income requiring a tax return also increases

In short,

"Doing a side job on Mercari = might be treated as a 'business' for tax purposes too"

This means that preparing for a tax return is essential!

What we can learn from this Mercari tax issue is,

Selling unwanted items is tax-free, but if you don't have the right knowledge, you could be treated as a business and end up losing money.

That is what it means.

If you are going to do it, you should handle personal property worth 300,000 yen or less.

By doing so, no matter how much you sell, it is treated as tax-free.

Buy it for personal use, and sell it when you no longer need it.

By doing this, it is possible to continue selling as unwanted items.

Of course, you shouldn't lie, but it is quite difficult for even tax accountants to determine whether an item is

an 'unwanted item' or for 'profit-making purposes'.

It is a so-called gray zone, and there are still many people selling items this way.

Why not take a moment to re-evaluate whether the items you are handling are 'unwanted items' or 'for business use'?

Why not take a moment to re-evaluate whether the items you are handling are 'unwanted items' or 'for business use'?

Why not take a moment to re-evaluate?

Summary

Key points to keep in mind regarding Mercari tax issues

• Selling unwanted items is basically tax-free

• Be careful with high-value items (over 300,000 yen)

• If you buy to sell,

  • company employees with salary income can earn up to 200,000 yen in annual profit

  • housewives and students without salary income do not need to file a tax return for annual profits up to 480,000 yen

'Do I have to pay tax if I sell on Mercari?'

To you who are thinking that.

But I think you realized it after listening to today's broadcast.

Selling unwanted items is generally tax-free.

However,

• buying to resell

• selling continuously

• selling high-value items

In these cases, you may be subject to taxation.

In particular, with the Mercari terms of service revision on October 22, 2025,

"Prohibition of business use of personal accounts"

was explicitly stated, so

the possibility of being treated as a "business" for tax purposes has increased.

What is important is

"having the right knowledge to avoid losses"

.

Please use today's content as a reference to decide whether to proceed tax-free as selling unwanted items or to keep it within the range that does not require a tax return.

Thank you for reading until the end.