Selling or Trading In an Old Phone: Protect Your Information First

Many of us have an old phone sitting in a kitchen drawer. Maybe it still turns on. Maybe it has a cracked screen. Either way, it may be worth a little something, and the money could help with a monthly bill. A phone trade-in credit or a small sale might cover a month or two of a $15 streaming plan, though what you get depends on the phone and its condition.

The most important part is not the price. It is making sure none of your personal information goes along with the phone. This guide walks through that first, then looks at the ways to sell or trade in.

Step 1: Protect your information

Your old phone may hold photos, messages, contacts, saved passwords and banking apps. The Federal Trade Commission (FTC) suggests a few steps before you trade in, sell or give away a phone.

Back up your phone, so you keep a copy of everything for your new one. Ask a family member or a store clerk to help if you are not sure how.
Take out the SIM card and any memory card. If you are keeping your phone number, the SIM card may move to your new phone.
Erase your data by restoring the phone to its factory settings. This wipes contacts, messages, photos and your browsing history.
Update any accounts that use your phone number to confirm it is really you. If you use an authenticator app, you may need to set it up again on the new phone.

On an iPhone

Apple’s support page says to back up the iPhone first. If you have an Apple Watch paired to it, unpair the watch. Next, sign out of your Apple Account. Then go to Settings, then General, then “Transfer or Reset iPhone,” and tap “Erase All Content and Settings.” Enter your passcode if asked, and confirm.

On an Android phone

Google’s help page says to know your Google Account name and password before you reset, because you will need them. Back up to your Google Account first. Charge the phone to at least 70 percent and connect it to Wi-Fi. Then reset it from the Settings app. The reset can take up to an hour, and the exact steps differ from one brand to another, so check your maker’s support page.

If you feel unsure, a local phone store or your wireless provider can help you do this. Do it before the phone leaves your hands.

Step 2: Decide how to sell

Trade-in programs

Some manufacturers, wireless providers and electronics stores take old phones as a trade-in, usually as a credit toward a new one. This is the easiest option. You hand over the phone and get a credit. The value varies a lot with the model and its condition, so compare more than one offer. Ask whether the credit shows up on your bill, and whether it is paid all at once or spread over several months.

Selling online

You can sell a phone yourself on sites such as eBay or Swappa. You usually get more than from a trade-in, but you do more work: take photos, write a description and ship the phone.

As of October 2026, eBay’s help page lists a final value fee of 13.6 percent of the sale for most categories (up to $7,500 per item), plus a small per-order fee of $0.30 for orders of $10 or less and $0.40 for larger orders. That page did not name cell phones specifically, so check eBay’s current fee page or your Seller Hub for the exact rate. Our guide to selling on eBay walks through the steps.

Swappa, a marketplace for used electronics, lists a 3 percent seller fee on the sold price as of October 2026. Listing is free. Payment services such as PayPal or Stripe add their own fees, so read the details before you sign up.

Selling locally

A neighbor or friend may be glad to buy a working phone. If you meet a stranger, follow the safety steps in our guide to safe local pickup. Meet in a public place in daylight, and prefer a payment you can see arrive. Do not accept a check from a buyer you do not know.

Step 3: Take clear photos

If you sell online, buyers want to see the real phone. Photograph the front, back and sides near a window, on a plain surface. Show any scratches or cracks honestly. Our listing photos guide has simple tips. Honest descriptions mean fewer returns and fewer arguments.

What if the phone does not sell?

If a phone is too old or too damaged to sell, do not simply throw it out. The FTC suggests recycling it through the manufacturer, your wireless provider or a local electronics store, or through the EPA’s electronics recycling guidance. Erase it first, in the same way.

Is the money taxable?

The IRS says the loss on selling a personal item is not deductible, but a gain on the sale of a personal item is taxable. Most old phones sell for far less than they cost, so many people have no taxable gain. Online marketplaces must send a Form 1099-K only when payments pass $20,000 and 200 transactions, according to the IRS. A small sale is far below that.

If you sell often, or you also receive Social Security, SSI or Medicaid, check your own situation. Our guide to side income and benefits is a good place to start. This is general information, not tax advice.

A gentle watch-out for scams

Be careful of any buyer who offers more than the asking price, asks you to ship before payment clears, or sends a link to “confirm” payment. Real payments show up in your own account. Never share a bank login, a code sent to your phone or your Social Security number with a buyer.

Selling or Trading In an Old Phone: Protect Your Information First