Taxes on points earning & Mercari|Where does it start? The filing line

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This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative.

For points earning and Mercari alike, most people need not worry about taxes. Points accumulated through everyday shopping are treated as a "discount" and are not taxed, and selling unwanted items from around the house on a flea-market app is also non-taxable. On the other hand, rewards from points-earning sites, points won in prize campaigns, resale or handmade sales, and high-value sales of precious metals can be taxable. Based on the National Tax Agency's treatment, we organize where the line for "at what point is it taxable" lies.

The line for taxation

Ordinary points accumulated through shopping (Rakuten, PayPay, d Points, etc.) are not taxed and require no filing (treated the same as a discount)[NTA No.1907].
② Extraordinary or incidental points, such as those won in a prize campaign, are "occasional income," and because there is an annual special deduction of ¥500,000, they are effectively non-taxable for most people.
"Consideration" points from points-earning sites, surveys, walk-to-earn apps, and the like are miscellaneous income. An employee files a tax return if income other than salary exceeds ¥200,000.
④ On Mercari and similar apps, selling movable property for daily life (clothing, furniture, daily necessities) is non-taxable[NTA No.3105]. However, resale, handmade goods, and precious metals/art worth more than ¥300,000 per item are taxable.

Side income / taxes

The taxation map for points

Type of pointsTaxExamples
Ordinary rewards accompanying shoppingNot taxed (treated as a discount; no filing)[NTA]Rakuten, PayPay, d Points, credit-card rewards, miles (for boarding)
Extraordinary grants from prizes and campaignsOccasional income (booked as revenue when used. Effectively non-taxable within the annual special deduction of ¥500,000)Winning a "full refund by lottery," high-value sign-up perks, etc.
Points as consideration for servicesMiscellaneous incomePoints-earning sites (task rewards), surveys, receipt and step-count apps
Points received in connection with a businessBusiness income, etc.Using for business a large volume of points received when settling purchases, etc.

The basic rule is that points are booked as income not "when received" but "when used" (1 point = ¥1 equivalent). Because only "(revenue − ¥500,000) × 1/2" of occasional income is taxed, it is rare for anyone to need to file at the level of a campaign win. The charge-reward points from cashless tax payment are also treated as ordinary rewards.

The taxation line for Mercari and flea-market apps

What you sold / how you sold itTax
Clothes you no longer wear, furniture you don't use, daily necessities, books you've finished reading, and other movable property for daily lifeNon-taxable (no filing needed no matter how much you sell)[NTA No.3105]
Precious metals, jewels, calligraphy/paintings, and antiques worth more than ¥300,000 per item (per set)Capital gains (with an annual special deduction of ¥500,000. See Taxes on gold bullion)
Buying to sell for profit (retail arbitrage), handmade sales, and repeated markup resale of limited-edition itemsMiscellaneous income (business income depending on scale) = tax on sales minus expenses such as purchase costs and shipping

The point is: "disposing of unwanted items is non-taxable; doing business is taxable." Note that for high-value, repeated transactions, a system in which platforms provide transaction information to the tax office (the reporting system for digital platform transactions) has begun, so "no one will find out because it's a flea-market app" no longer holds.

The line at which filing becomes necessary

  • Employees: File a tax return if your total taxable income (miscellaneous income, the taxable portion of occasional income, etc.) exceeds ¥200,000 a year (the precise meaning of the ¥200,000 rule). Even at ¥200,000 or less, a residence tax declaration is required.
  • Full-time homemakers, students, etc.: If your income falls within the range of the basic deduction and the like (income of ¥580,000–¥950,000, for the 2025 and 2026 tax years), no income tax applies, but be careful about the effect on dependent status (for tax and social insurance) (dependents under health insurance).
  • Miscellaneous income is judged by the amount after deducting expenses (purchase costs, shipping, packaging materials, fees). Keep your records.

FAQ

I used ¥100,000 worth of Rakuten points during the year. Do I need to file?

If they are points accumulated through ordinary rewards on shopping, no. The National Tax Agency does not treat them as taxable, the same as a discount in ordinary commercial transactions. On the other hand, points won in a prize campaign are occasional income, but within the annual special deduction of ¥500,000 they are effectively not taxed.

I sold ¥300,000 worth of goods on Mercari during the year. Is there any tax?

If it is the sale of unwanted items (clothing, furniture, daily necessities, and other movable property for daily life), it is non-taxable and requires no filing regardless of the amount. However, buying to resell for profit or producing and selling handmade goods is taxable as miscellaneous income, and an employee must file a tax return if the profit (sales minus expenses) exceeds ¥200,000.

I earned ¥250,000 on a points-earning site during the year.

Since it is consideration for services, it is miscellaneous income. Because you are an employee whose income other than salary exceeds ¥200,000, a tax return is required. Regardless of the exchange destination (cash, gift cards, or points), it is calculated by subtracting expenses such as communication costs from the equivalent amount earned.

Will the tax office know about my flea-market app sales?

For high-value, repeated sellers, a system in which platform operators report transaction information to the tax office has begun. For transactions that amount to doing business, it is safest to keep proper records and file correctly.

Data sources

* This article provides general information and is not tax advice. For judgments on whether an activity constitutes a business and for individual treatment, please confirm with a tax office or a tax accountant.