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1099-K Threshold by State (2026)

The federal threshold reverted to $20,000 and 200+ transactions. Massachusetts, Maryland, Virginia, and Vermont require $600 with no transaction minimum; Illinois requires $1,000 and 4+ transactions.

By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation

Not tax advice. This page is general information about public IRS and state reporting rules, not personalized tax guidance. Marginory is not an accounting or tax preparation firm. Confirm your specific filing obligations with a licensed CPA or tax professional.

Federal 1099-K threshold (2025 & 2026)

$20,000 in payments AND more than 200 transactions — both conditions must be met before a marketplace is required to send you a Form 1099-K.

This restores the original threshold after a planned phase-down to $2,500 (2025) and then $600 (2026) was reversed by the One, Big, Beautiful Bill Act. Source: IRS newsroom FAQ, "IRS issues FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill; dollar limit reverts to $20,000" (irs.gov). Last verified 2026-08-24.

Widely repeated but outdated:Many articles and forum posts online still say the federal 1099-K threshold is $600. That was the plan under prior law before it was reversed — as of the most recent guidance, it is not the current federal threshold. If you're reading advice that assumes $600 is a federal rule, treat it as out of date and check IRS.gov directly.

State thresholds lower than federal

A handful of states require marketplaces to issue a 1099-K at a lower dollar amount than the federal threshold, regardless of transaction count (except Illinois, which also sets a transaction minimum):

StateThresholdMinimum transactions
Massachusetts$600None
Maryland$600None
Virginia$600None
Vermont$600None
Illinois$1,0004 or more

Last verified 2026-08-24. State thresholds can change — verify with your state's department of revenue before assuming these figures are still current.

Other states may also differ from federal

We have not independently verified exact current thresholds for every state. If you live somewhere not listed in the table above, don't assume the $20,000/200-transaction federal threshold automatically applies to you — some states set their own, lower bar. Check your state's department of revenue site directly, or ask a CPA licensed in your state.

What the 1099-K threshold actually means

The 1099-K threshold only controls when a payment platform (Etsy, eBay, PayPal, Venmo, Cash App for business, etc.) is legally required to send you — and the IRS — a Form 1099-K reporting your gross payment volume for the year. It has no bearing on whether that income is taxable. Income you earn from selling goods for a profit is taxable whether or not any form gets issued for it, and you're expected to report it on your own even if your sales stay under every threshold above.

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Frequently Asked Questions

Is this page tax advice?
No. This page summarizes publicly available IRS and state guidance on Form 1099-K reporting thresholds for general informational purposes only. It is not tax, legal, or accounting advice, and Marginory is not a tax preparation or accounting firm. Talk to a licensed CPA or tax professional about your specific situation before making any filing decisions.
Is the federal 1099-K threshold really $20,000 in 2026, not $600?
Yes, as of the most recent IRS guidance verified for this page. A prior law had scheduled the federal threshold to phase down to $2,500 for 2025 and then $600 for 2026, but the One, Big, Beautiful Bill Act (signed into law in 2025) reversed that phase-down and restored the original $20,000-and-200-transactions threshold for 2025 and 2026. A lot of older articles online still describe the now-reversed $600 threshold as current — that information is outdated. Always check IRS.gov directly for the latest confirmation before filing.
If I don't get a 1099-K, do I still have to report the income?
Yes. Whether or not a marketplace sends you a Form 1099-K, you are still legally required to report all your taxable income, including income from occasional or side selling that turns a profit. The 1099-K threshold only determines when a platform must report your sales to the IRS — it does not change your own obligation to report income you actually earned.
Why do some states have a lower threshold than the federal one?
States can set their own, stricter reporting requirements for platforms operating within their borders, independent of the federal threshold. Massachusetts, Maryland, Virginia, and Vermont require a 1099-K at just $600 in payments with no minimum transaction count, and Illinois requires one at $1,000 and 4 or more transactions. If you live in one of these states, you may receive a 1099-K even though your sales are well under the federal $20,000 threshold.
Are there other states with lower thresholds not listed here?
Possibly — a few other states (for example, some reporting suggests Missouri and DC have explored their own rules) have discussed or enacted lower thresholds, but we have not independently verified exact current figures for those states as of this page's last update. If you live somewhere not listed above, check your state's department of revenue directly rather than assuming the federal threshold applies.