Tax & Legal

Do You Need to Pay Tax on Mercari Sales? Tax Guide for Foreigners in Japan [2026]

Japan's tax rules for flea market sales are nuanced — especially for foreigners. Here's the ¥200,000 rule, what counts as taxable income, and what deductions you can claim.

🏛️

Furima Navi Team

Last updated: 2026-05-26T00:00:00+09:00

⚠️Disclaimer: This is general information only. Tax situations vary. Consult a licensed tax accountant (税理士, zeirishi) for your specific circumstances.

The ¥200,000 Rule — The Most Important Number

Japan has a specific exemption for salaried workers: if your 雑所得 (zatsushotoku — miscellaneous income) — which includes flea market profits — is under ¥200,000 NET for the year, you do not need to file a final tax return (確定申告).

⚠️ Critical: This exemption ONLY applies if you have a salary.

If you are a student, on a working holiday, self-employed, or have no regular salary income — the ¥200,000 exemption does NOT apply. All taxable income must be reported.

Personal Items vs Business Income

Selling your own personal belongings (不用品, fuyouhin — unwanted items) at or below their original price is generally not taxable. This includes cleaning out your closet, selling used clothes, or downsizing before a move.

Consistently buying items to resell at a profit (せどり, sedori — reselling) is treated as taxable 雑所得 (miscellaneous income) or 事業所得 (jigyoushotoku — business income) if conducted as a regular business. The line is intentionally vague, but consistent profit-making activity is the key indicator.

ActivityTax Status
Selling own clothes, books at below-purchase priceNot taxable (personal items at a loss)
Selling household goods you no longer needGenerally not taxable
Occasional reselling with small profitTaxable as 雑所得 if net exceeds ¥200K (salaried)
Regular reselling / buying to resellTaxable as 雑所得 or 事業所得
Selling handmade goods consistentlyTaxable as 事業所得 if ongoing business

What Expenses Can You Deduct?

Platform commission (10%)

Deducted automatically — calculated on gross sales

Shipping costs

If seller-paid (送料込み), deduct actual shipping cost per item

Original purchase price of items sold

Must be able to document — receipts or bank records

Packaging materials

Bubble wrap, boxes, tape — if purchased specifically for selling

Business-related tools

Scale for weighing packages, label printer — if treating as business

The Filing Process for Foreigners

  1. 1

    Get a My Number card (マイナンバーカード) from your local ward office (役所, yakusho) with your residence card.

  2. 2

    Calculate net income: total Mercari proceeds − fees − shipping − purchase costs.

  3. 3

    Access the NTA e-Tax system (国税庁 確定申告書等作成コーナー) at www.nta.go.jp

  4. 4

    Select 所得税 (shotokuze — income tax) → 確定申告書 → enter income and deductions.

  5. 5

    File online (e-Tax) or print and mail before March 15.

  6. 6

    Pay any tax owed by March 15 to avoid 延滞税 (entaizei — late payment penalty).

Frequently Asked Questions

Q: Do foreigners need to pay tax on Mercari sales in Japan?

A: It depends. Salaried employees with under ¥200,000 net profit do not need to file. Non-salaried individuals must report all taxable income. Selling personal items at a loss is generally not taxable.

Q: What is the ¥200,000 rule?

A: Salaried employees with miscellaneous income under ¥200,000 NET are exempt from filing. The ¥200,000 is after deducting fees, shipping, and purchase costs.

Q: What expenses can I deduct?

A: Platform fees, shipping costs, original purchase price, and proportional business expenses (packaging materials). Keep receipts.

Q: When is the tax filing deadline?

A: 確定申告 filing period: February 16 to March 15, for the previous calendar year.

Q: Can foreigners use e-Tax?

A: Yes, with a My Number card (マイナンバーカード) obtained from your local ward office with your residence card.