Every flip you make in Hypixel Skyblock comes with costs beyond just the purchase price. Understanding and minimizing these taxes and fees is essential to maintaining healthy profit margins.
Every item sold on the Bazaar is subject to a 1.25% tax on the sell price. This is automatically deducted when you collect your coins from a sell order. This can be reduced to 1.125% by claiming a free cummunity upgrade and further via a paid cumminity upgrade option with the NPC Elisabeth.
Example: If you sell an item for 1,000,000 coins, you'll receive 987,500 coins (1.25% = 12,500 coins in tax).
The Auction House has a more complex tax structure that depends on the sell price, for BIN auctions its:
During Derpy Mayor events, Auction House claiming taxes increase. This affects the claim portion of AH fees (typically on higher-value items), so be sure to account for the higher claiming cost when estimating net profit on items above 1M in price.
Use the /cofl ahtax <sellAmount> command to calculate the exact tax for any sell amount (BIN auctions). The command automatically accounts for Derpy's extra costs (it assumes that auctions are claimed within derpy). See the full command reference.
Never look at the gross margin alone. Always factor in taxes before deciding if a flip is profitable.
Formula for Bazaar:
Net Profit = (Sell Price × 0.9875) - Buy Price
Formula for Auction House (simplified for over 10M):
Net Profit = (Sell Price × 0.97) - Buy Price
Our Bazaar Flips and AH Flipper tools automatically calculate net profit after taxes, so you always see accurate profit estimates.
While using buy and sell orders doesn't reduce taxes, it dramatically improves your margins by getting better prices. The improved margins more than compensate for the tax:
This strategy alone can improve your margins by 5-15%, which far exceeds the 1.25% Bazaar tax.
Allow time for your buy and sell orders to fill rather than rushing to instant trades. The longer you wait, the better prices you can often achieve, further offsetting tax costs.
If you cancel a Bazaar buy or sell order before it fills, you get your coins/items back with no penalty. However, you lose time and opportunity cost. To minimize cancelled orders:
The biggest transfer loss comes from buying an item and then having its price crash before you can sell it. To minimize this risk:
Direct player-to-player trades and coin transfers have no tax, but they carry significant risk of scams. Only trade directly with players you trust completely, and always double check prices to verify items before accepting. See our scam prevention guide for more details.
The SkyCofl Mod automatically tracks all your flips and calculates the exact profit after taxes. Use /cofl flips to review your flip history and see which items are actually profitable after all fees. The mod also tracks any losses from price crashes or auction relisting fees, giving you a complete financial picture.
Learn more in our profit tracking guide and mod commands reference.
Wrong thinking: "5% margin = 50k profit on 1M sale"
Correct thinking: "5% margin − 1.25% tax = 3.75% net = 37.5k profit on 1M sale"
Impact: Flipping "breakeven" items (2% margin) actually loses money after fees!
Using instant trades is convenient but expensive. You're paying the market's bid-ask spread on entry and exit.
Fix: Slow down. Place orders. Wait 10–30 min for fills. Capture the spread instead of losing it.
You bought sugar cane @ 1,000 with plan to sell @ 1,100. Then a new farming event makes sugar cane crash to 900.
Loss: −100 coins per unit + 1.25% tax on whatever you finally sell it for = −11.25 coins/unit minimum = −13.75 coins/unit total impact.
Prevention: Avoid holding during unknown events. Use Top Movers to spot early crashes.
Almost. You can reduce from 1.25% to 1.125% by claiming orders manually via Mod, but it's marginal (0.125%). The primary way to "beat" taxes is through better order placement, which increases margins by 3–10%.
When the margin opportunity exceeds the tax penalty. Also most expensive items are only sellable on the AH.
Example: 50% AH margin (tax 2.5%) = 47.5% net >> 5% Bazaar margin (tax 1.25%) = 3.75% net
Rule: AH wins when margin > 2× Bazaar available margin. At 5M+ capital, this flips.
Price crashes. Taxes are 1–2.5%. Crashes can be 20–50%. Avoid volatility >> optimize taxes.
No direct fee, but if you relist an item on the auction house you will have to pay the listing fee again. On the bazaar you have a maximum amount of coin value that you can create orders for per day, so replacing orders will be impossible if you do it a lot. Only cancel if item is tanking or order won't fill in reasonable time (>1h).