How Much Does It Cost to Start a Thrift Store?
Last updated: May 2026
National Average
Low
$20,000
Medium
$75,000
High
$200,000
A secondhand retail shop selling donated or consigned clothing, furniture, books, and household items at reduced prices. Can be for-profit or nonprofit.
Time to Launch
1-3 months
Profit Margins
20-40%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Thrift Store in Nationally
Budget:
$30,000
$10,000
$10,000
$1,500
$800
$2,500
$3,000
$12,000
Options
Employees:
Startup Costs
$69,800
Monthly Costs
$8,000
First Year Total
$165,800
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $15,400 | $57,750 | $154,000 | $50 | 7.0% |
| West Virginia | $15,400 | $57,750 | $154,000 | $100 | 6.0% |
| Oklahoma | $16,000 | $60,000 | $160,000 | $100 | 4.5% |
| Alabama | $16,200 | $60,750 | $162,000 | $200 | 4.0% |
| Arkansas | $16,200 | $60,750 | $162,000 | $45 | 6.5% |
| North Dakota | $16,400 | $61,500 | $164,000 | $135 | 5.0% |
| Iowa | $16,600 | $62,250 | $166,000 | $50 | 6.0% |
| Kansas | $16,600 | $62,250 | $166,000 | $160 | 6.5% |
| Missouri | $16,600 | $62,250 | $166,000 | $50 | 4.2% |
| South Dakota | $16,600 | $62,250 | $166,000 | $150 | 4.2% |
| Kentucky | $16,800 | $63,000 | $168,000 | $40 | 6.0% |
| Louisiana | $16,800 | $63,000 | $168,000 | $100 | 5.0% |
| Wyoming | $16,800 | $63,000 | $168,000 | $100 | 4.0% |
| Nebraska | $17,000 | $63,750 | $170,000 | $105 | 5.5% |
| Indiana | $17,200 | $64,500 | $172,000 | $95 | 7.0% |
| Michigan | $17,600 | $66,000 | $176,000 | $50 | 6.0% |
| Ohio | $17,600 | $66,000 | $176,000 | $99 | 5.8% |
| New Mexico | $18,000 | $67,500 | $180,000 | $50 | 4.9% |
| South Carolina | $18,000 | $67,500 | $180,000 | $110 | 6.0% |
| Wisconsin | $18,200 | $68,250 | $182,000 | $130 | 5.0% |
| Tennessee | $18,400 | $69,000 | $184,000 | $300 | 7.0% |
| Texas | $18,400 | $69,000 | $184,000 | $300 | 6.3% |
| Georgia | $18,800 | $70,500 | $188,000 | $100 | 4.0% |
| Minnesota | $18,800 | $70,500 | $188,000 | $155 | 6.9% |
| Illinois | $19,000 | $71,250 | $190,000 | $150 | 6.3% |
| Idaho | $19,200 | $72,000 | $192,000 | $100 | 6.0% |
| North Carolina | $19,200 | $72,000 | $192,000 | $125 | 4.8% |
| Pennsylvania | $19,200 | $72,000 | $192,000 | $125 | 6.0% |
| Montana | $19,400 | $72,750 | $194,000 | $35 | 0.0% |
| Utah | $20,000 | $75,000 | $200,000 | $54 | 6.1% |
| Delaware | $20,800 | $78,000 | $208,000 | $110 | 0.0% |
| Nevada | $21,000 | $78,750 | $210,000 | $425 | 6.8% |
| Virginia | $21,400 | $80,250 | $214,000 | $100 | 5.3% |
| Vermont | $21,800 | $81,750 | $218,000 | $125 | 6.0% |
| Arizona | $22,000 | $82,500 | $220,000 | $50 | 5.6% |
| Colorado | $22,000 | $82,500 | $220,000 | $50 | 2.9% |
| Florida | $22,400 | $84,000 | $224,000 | $125 | 6.0% |
| Oregon | $22,400 | $84,000 | $224,000 | $100 | 0.0% |
| Rhode Island | $22,400 | $84,000 | $224,000 | $150 | 7.0% |
| Maine | $22,800 | $85,500 | $228,000 | $175 | 5.5% |
| New Hampshire | $23,400 | $87,750 | $234,000 | $102 | 0.0% |
| Washington | $23,600 | $88,500 | $236,000 | $200 | 6.5% |
| Connecticut | $23,800 | $89,250 | $238,000 | $120 | 6.3% |
| Maryland | $24,200 | $90,750 | $242,000 | $100 | 6.0% |
| New Jersey | $25,000 | $93,750 | $250,000 | $125 | 6.6% |
| Alaska | $25,400 | $95,250 | $254,000 | $250 | 0.0% |
| New York | $27,800 | $104,250 | $278,000 | $200 | 4.0% |
| California | $30,400 | $114,000 | $304,000 | $70 | 7.3% |
| Massachusetts | $30,800 | $115,500 | $308,000 | $500 | 6.3% |
| Hawaii | $38,600 | $144,750 | $386,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$57,750
- West Virginia$57,750
- Oklahoma$60,000
- Alabama$60,750
- Arkansas$60,750
5 Most Expensive States
- Hawaii$144,750
- Massachusetts$115,500
- California$114,000
- New York$104,250
- Alaska$95,250
Frequently Asked Questions
Opening a thrift store typically requires a low-to-mid five-figure investment for a small shop in an affordable space with secondhand fixtures and purchased opening inventory, scaling well into six figures for a larger thrift store with more inventory, better fixtures, and a sorting/processing area.
Inventory sources include: community donations (free, but requires building a donation reputation), estate sales and auctions priced by the pound, liquidation pallets from retailers also priced by the pound, consignment from community members (the consignor takes a meaningful share of the sale price), and buy-outright from the public. Building a strong donation program is the key to long-term profitability.
Well-run thrift stores achieve healthy net profit margins — among the highest in retail. Inventory cost of donated goods is essentially zero; purchased lots are priced by the pound at the wholesale end and sell for low-to-mid two-figure dollar prices per item at retail. The main costs are rent, labor (sorting and pricing), and utilities. Revenue scales with square footage and merchandise quality.
Most states require a secondhand dealer license for reselling used goods, typically a low-three-figure registration fee. A standard business license and seller's permit for sales tax collection are also required. Some cities require secondhand dealers to record seller information for items like electronics and jewelry to deter stolen goods sales.
Top-selling categories are: clothing (highest volume), furniture (highest per-item revenue), electronics (typically priced in the two- to low three-figure range per item), home goods and kitchen items, books, and vintage/collectibles. The secret to thrift store profits is cherry-picking valuable items for online sale (eBay, Poshmark, Facebook Marketplace) and volume-pricing everything else.