How Much Does It Cost to Start a Thrift Store?
Last updated: March 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:
One-Time Costs
$69,800
Monthly Costs
$0
First Year Total
$69,800
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $17,000 | $63,750 | $170,000 | $50 | 7.0% |
| West Virginia | $17,200 | $64,500 | $172,000 | $100 | 6.0% |
| Alabama | $17,600 | $66,000 | $176,000 | $200 | 4.0% |
| Arkansas | $17,800 | $66,750 | $178,000 | $45 | 6.5% |
| Oklahoma | $17,800 | $66,750 | $178,000 | $100 | 4.5% |
| Kansas | $18,000 | $67,500 | $180,000 | $160 | 6.5% |
| Indiana | $18,200 | $68,250 | $182,000 | $95 | 7.0% |
| Iowa | $18,200 | $68,250 | $182,000 | $50 | 6.0% |
| Michigan | $18,200 | $68,250 | $182,000 | $50 | 6.0% |
| Nebraska | $18,200 | $68,250 | $182,000 | $105 | 5.5% |
| Ohio | $18,200 | $68,250 | $182,000 | $99 | 5.8% |
| Kentucky | $18,400 | $69,000 | $184,000 | $40 | 6.0% |
| Louisiana | $18,400 | $69,000 | $184,000 | $100 | 4.5% |
| Missouri | $18,400 | $69,000 | $184,000 | $50 | 4.2% |
| 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% |
| Illinois | $19,000 | $71,250 | $190,000 | $150 | 6.3% |
| New Mexico | $19,000 | $71,250 | $190,000 | $50 | 5.1% |
| Wisconsin | $19,000 | $71,250 | $190,000 | $130 | 5.0% |
| North Carolina | $19,200 | $72,000 | $192,000 | $125 | 4.8% |
| South Carolina | $19,200 | $72,000 | $192,000 | $110 | 6.0% |
| South Dakota | $19,400 | $72,750 | $194,000 | $150 | 4.5% |
| Minnesota | $19,600 | $73,500 | $196,000 | $155 | 6.9% |
| North Dakota | $19,800 | $74,250 | $198,000 | $135 | 5.0% |
| Wyoming | $20,000 | $75,000 | $200,000 | $100 | 4.0% |
| Nevada | $20,400 | $76,500 | $204,000 | $425 | 6.8% |
| Arizona | $20,600 | $77,250 | $206,000 | $50 | 5.6% |
| Florida | $20,600 | $77,250 | $206,000 | $125 | 6.0% |
| Idaho | $20,600 | $77,250 | $206,000 | $100 | 6.0% |
| Pennsylvania | $20,600 | $77,250 | $206,000 | $125 | 6.0% |
| Delaware | $20,800 | $78,000 | $208,000 | $110 | 0.0% |
| Virginia | $20,800 | $78,000 | $208,000 | $100 | 4.3% |
| Colorado | $21,200 | $79,500 | $212,000 | $50 | 2.9% |
| Montana | $21,200 | $79,500 | $212,000 | $70 | 0.0% |
| Utah | $21,200 | $79,500 | $212,000 | $54 | 4.8% |
| Oregon | $22,400 | $84,000 | $224,000 | $100 | 0.0% |
| Vermont | $22,400 | $84,000 | $224,000 | $125 | 6.0% |
| Maine | $22,800 | $85,500 | $228,000 | $175 | 5.5% |
| Rhode Island | $23,200 | $87,000 | $232,000 | $150 | 7.0% |
| 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% |
| New Jersey | $25,000 | $93,750 | $250,000 | $125 | 6.6% |
| Alaska | $25,400 | $95,250 | $254,000 | $250 | 0.0% |
| Maryland | $25,800 | $96,750 | $258,000 | $100 | 6.0% |
| California | $27,000 | $101,250 | $270,000 | $70 | 7.3% |
| New York | $27,800 | $104,250 | $278,000 | $200 | 4.0% |
| Massachusetts | $30,000 | $112,500 | $300,000 | $500 | 6.3% |
| Hawaii | $38,600 | $144,750 | $386,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$63,750
- West Virginia$64,500
- Alabama$66,000
- Arkansas$66,750
- Oklahoma$66,750
5 Most Expensive States
- Hawaii$144,750
- Massachusetts$112,500
- New York$104,250
- California$101,250
- Maryland$96,750
Frequently Asked Questions
Opening a thrift store costs $20,000 to $200,000. A small thrift shop in an affordable space with secondhand fixtures and purchased opening inventory can launch for $20,000-$50,000. A larger thrift store with more inventory, better fixtures, and a sorting/processing area typically costs $60,000-$150,000.
Inventory sources include: community donations (free, but requires building a donation reputation), estate sales and auctions ($0.10-$0.50/lb), liquidation pallets from retailers ($0.50-$2/lb), consignment from community members (pay 40-60% of 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 20-40% net profit margins — among the highest in retail. Inventory cost of donated goods is essentially zero; purchased lots run $0.10-$1.00/lb and sell for $3-$20+ per item. 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 ($50-$200) for reselling used goods. A standard business license ($50-$200) 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 ($10-$100 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.