Is there tax on stamps?

There are a few things to keep in mind when selling your stamps. While it is perfectly legal to sell postage stamps, you may be subject to taxation depending on the value of the stamps (see below). If you are selling many stamps, or stamps considered rare or valuable, you may be required to pay taxes on the sale.

Is there a sales tax on postage stamps?

Americans don’t have to pay sales tax when buying them from the US Postal Service (USPS).

For those who plan to sell stamps to collectors (philatelists), be sure to check your local tax code. According to Sales and use Tax Regulations of California Article 4 (Regulation 1541) “Tax does not apply to charges for postage or for addressing for the purpose of mailing (by hand or by mechanical means), folding for the purpose of mailing, enclosing, sealing, preparing for mailing, or mailing letters or other printed matters, provided such charges are stated separately on invoices and in the accounting records. Tax applies, however, to charges for envelopes.”

Do I have to pay sales tax on stamps on eBay or Amazon?

It depends. If stamps are placed in the correct section of the marketplace (POSTAGE), sales tax will not be charged. In other cases, the marketplace might mark stamps as collectibles and add sales tax to your purchase. To be on the safe side, be sure to check the correct amount before buying stamps outside USPS.

Another option would be to buy stamps directly in the USPS shop on eBay or Amazon store or their official site, as there is no tax on USPS Store items (federal entities are exempt from sales tax.)

What types of stamps can be resold?

You accidentally purchased too many stamps and want to get rid of them? Found some forever stamps on the bookshelf; it doesn’t matter. They can all be sold to stamp collectors or used for the postage if unused and in good condition.

Most of the stamps Americans have at their disposal are not worth more than their face value. The majority of them are stamps that were issued after 1930, but there are exceptions. To get them appraised, search for a “stamp collector near me” or visit your local philately club (if you can find one.)

Unfortunately, stamp collecting has become less and less popular over the years. However, in the U.S., there still are philatelists who are ready to pay 1000s of dollars for scarce stamps. To find the best deals, appraise them with several collectors.

Unused, old stamps that don’t have a collector’s premium can be used to send letters or postcards according to their face value.

Are stamps taxed in the U.S?

Yes, and no.

Postage stamps bought from the USPS are not subject to sales tax, but tax can be applied when buying stamps from other vendors, including online shops.

If you intend to sell stamps online or to stamp collectors, check state and local regulations, as tax might apply. Otherwise, all old stamps that are unused and in good condition can be used for postage.

If you have old stamps, they can be sold to collectors or used for postage. Local sales tax might apply when you sell the stamps to stamp collectors or other interested parties for different purposes.

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