How much tax do I have to pay Canada Revenue Agency?

[pokemoncookie]

Hi everyone,

I sell my personal things on ebay as a hobbyist. Last week, ebay told me that it had submitted a 2024 digital sales report to CRA because I sold more than $2800 last year. My annual sales summary is shown below.

Total number of transactions = 16
Total transaction amount = $4,072.00 CAD
Total fees = - $592.19 CAD
Gross refunds = $0.00 CAD
Total taxes = - $364.55 CAD
Net adjustments = $0.00 CAD
Consideration = $3,115.26 CAD

Based on the information above, how much tax do I have to pay CRA?

Thank you for your help.

[phc64 · Accepted solution]

If you only sold 'personal use property' (stuff you had lying around the house or items from your personal collection) and did not sell anything for more than $1,000, you do not have to report anything and do not have to pay any tax. (It is still a good idea to maintain records of all your sales.)

Gains on the sale of 'personal use property' are considered capital gains, not business income. When calculating the taxable capital gain on 'personal use property', the 'adjusted cost base' is the greater of the amount you actually paid for the item or $1,000; which means that there is no taxable capital gain when 'personal use property' is sold for less than $1,000.

[raanana · Accepted solution]

Some collectables that you accumulated over decades and paid with after tax $$ now can be sol cheaper amd also if with a profit,ho to calculate it.If I bough postcards and stamps 30 year ago in other country lets say for 1000$ and sold it now for 1200 (but can be 700 as well )),who can calculate taxable gain with if consider inflation.Also,if I sell something,that was bough bu grandfather or father long ago and have to sale due to financial problems.They want to tax everything ,it looks like soon they will come after FB marketplace and Kijiji

[pokemoncookie · Accepted solution]

Thank you very much for your detailed explanation. I've learned a lot from you.

[pokemoncookie · Accepted solution]

Thank you.

[msau4301]

The amount of taxes you have to pay depends on your total income from all sources. If this was your only income you would not pay anything - the basic personal exemption is around $15,000, you can make up to that amount with no tax. But if you have another job (jobs) that amount is added to your income and depending on what bracket you were in tax would be at that rate.

Also keep in mind the $3,115 (after eBay's expenses/fees) would be less because you can deduct your selling expenses - packing supplies, mailing/shipping costs, etc. so the amount would be less still.

Everyone's tax owing amount is different depending not only on how much they sold here, but on the total income from all sources. 

[phc64]

It appears that the OP sold only what the CRA calls 'personal use property'. As long as nothing was sold for more than $1000, gains on sales of PUP do not have to be reported and are not taxable.

[brocante6]

If these are truly your personal belongings, or a collection accumulated over the years, I don't believe you have to pay tax on them?

[msau4301]

Where the line becomes fuzzy is when you are a collector. I am a collector of vintage Barbies and I have sold many over the years. Part of the collecting is knowing they may increase in value so therefore even though the collecting is a hobby, selling them for a profit would then make it a business/income. If it was just a few items or a low amount I'd say no, but if you're selling several items a week it's more than a hobby.

[reallynicestamps]

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individu...

Graduated tax rates.

We only pay 14.5% on the first $57,000 of taxable income.

And remember that eBay tells you your GROSS income.

You have deductions like refunds, insurance, postage, and eBay fees. 

[avidhiker-33]

@reallynicestamps, those are only the federal rates.  Taxtips.ca provides combined federal & provincial marginal tax rates, and updates those as budgets and new tax measures are approved. 

BC marginal tax rates for '25 and '26 are available here:  https://www.taxtips.ca/taxrates/bc.htm

For 2025 combined federal & BC provincial tax rates for most types of income are:

19.56% for TAXABLE income below $49,279

22.20% on additional taxable income between $49,279 and $57,375

28.20% on additional taxable income between $57,375 and $98,650 ...

...

53.5% on additional taxable income over $259,839

Marginal tax rates for other provinces are also available on that website

[wilmcal0]

How does one inform the CRA that these are "personal use property' sales and not income?

[avidhiker-33]

CRA only needs to be informed that sales are of personal use property IF they request additional information on the data submitted by ebay.

[avidhiker-33]

D*** - that posted b4 I was finished. The .csv file ebay submitted to CRA lists the gross selling price of each item sold, the fees deducted, gst/hst we paid on the fees, and shipping costs purchased through ebay. CRA MIGHT request information on the cost of the items we sold, and our packaging & shipping costs ... which can be supplied to them to demonstrate that the sales are personal use property and not a for-profit business venture.