Do I have to pay tax on cashback?

In most cases, no. Cashback on your own purchases is generally treated as a rebate on the price you paid, not as income. So the money you get back on your own orders usually isn't something you pay federal income tax on.

We don't withhold any tax from your cashback.

When it may be different

• Purchases for a business. If you buy for your business or as a self-employed person, the cashback lowers your costs and belongs in your business records. The same applies if you deduct a purchase as an expense: the cashback reduces what you can deduct.
• Rewards for inviting friends. You don't receive a referral bonus as a discount on your own purchase, but because someone joined through your invitation. The IRS may treat rewards like this as taxable income rather than as a rebate.
• Other rewards without a purchase of your own. The same can apply to money you receive without having bought anything yourself.

Your state may have its own rules for income tax.

This is not tax advice

We are a cashback site, not a tax advisor. If you're unsure about your own situation, check the information on IRS.gov or ask a tax professional.