OnlyFans Taxes: The Complete Guide for Creators
If you're earning money on OnlyFans, you owe taxes on it. There's no threshold below which you're exempt — every dollar of profit is taxable income. OnlyFans reports your earnings to the IRS via Form 1099-NEC if you earn $600 or more in a calendar year, but you're legally required to report all income regardless.
OnlyFans income is classified as self-employment income, which means you're treated as both the employer and employee for tax purposes. This has significant implications for how much you owe and when you need to pay.
Understanding Self-Employment Tax
The biggest surprise for new creators is self-employment (SE) tax. When you work a regular W-2 job, your employer pays half of your Social Security and Medicare taxes. When you're self-employed, you pay both halves:
- Social Security: 12.4% on the first $168,600 of net earnings (2025 limit)
- Medicare: 2.9% on all net earnings, plus an additional 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly)
- Total SE Tax: 15.3% on net self-employment income
The good news: you can deduct half of your self-employment tax from your adjusted gross income, which slightly reduces your income tax. The calculator above accounts for this.
Federal Income Tax Brackets
After calculating your self-employment tax, you also owe federal income tax at your marginal rate. For 2025, the brackets for single filers are:
- 10% on income up to $11,925
- 12% on income $11,926 - $48,475
- 22% on income $48,476 - $103,350
- 24% on income $103,351 - $197,300
- 32% on income $197,301 - $250,525
- 35% on income $250,526 - $626,350
- 37% on income over $626,350
These are marginal rates — you don't pay 22% on all your income just because some of it falls in the 22% bracket. Each dollar is taxed at the rate for the bracket it falls into.
Common OnlyFans Tax Deductions
Deductions reduce your taxable income, directly lowering your tax bill. Common deductions for OnlyFans creators include:
- Camera and equipment: Phones, cameras, tripods, lighting, ring lights
- Costumes, lingerie, and props: Items used exclusively for content creation
- Home office: If you have a dedicated space for content creation (calculated by square footage percentage)
- Internet and phone: The business-use percentage of your monthly bills
- Software and subscriptions: Editing software, scheduling tools, VPN, cloud storage
- Agency fees: If you work with an OnlyFans management agency, their commission is fully deductible
- Marketing costs: Paid promotions, shoutouts, advertising spend
- Professional services: Accountant fees, legal fees, business consulting
- Travel: If you travel specifically for content creation or collaboration
- Gym membership: Potentially deductible if your content niche requires fitness (consult a tax professional)
Keep receipts and records for every business expense. Use a separate bank account and credit card for business purchases. This makes tax time significantly easier and protects you in case of an audit.
Quarterly Estimated Tax Payments
If you expect to owe $1,000 or more in federal tax for the year, the IRS requires you to make quarterly estimated tax payments. Unlike W-2 employees who have taxes withheld each paycheck, self-employed creators must proactively send payments four times per year.
Missing quarterly payments triggers underpayment penalties (currently ~8% annual rate on the underpaid amount). The easiest approach: set aside 30% of every OnlyFans payout into a separate savings account, then use that fund for quarterly payments.
Use IRS Direct Pay or EFTPS to make payments electronically.
Should You Form an LLC or S-Corp?
As your OnlyFans income grows, entity structure becomes important:
- Sole Proprietor (default): No setup required. All income reported on Schedule C. You pay SE tax on everything. Fine for income under ~$50K.
- Single-Member LLC: Same tax treatment as sole proprietor, but provides liability protection. Recommended for all creators.
- S-Corp Election: Once you consistently earn $50K+/year, an S-Corp election can save significant self-employment tax. You pay yourself a "reasonable salary" and take the rest as distributions, which aren't subject to SE tax. At $100K net income, this can save $5,000-$10,000/year in taxes.
The breakeven point for S-Corp savings is typically $50,000-$60,000 in annual net profit, after accounting for the additional payroll costs. Consult a CPA who understands creator income for personalized advice.
How an Agency Helps With Tax Planning
Quality OnlyFans agencies don't just manage your content and DMs — they provide guidance on the business side too. Full-service agencies often help with:
- Connecting you with creator-specialized CPAs and accountants
- Providing organized income reports that make tax filing straightforward
- Advising on entity structure (LLC vs. S-Corp) as your income grows
- Tracking deductible business expenses
- Ensuring you're making quarterly payments on time
Agency fees themselves are a business deduction, reducing your taxable income. A creator paying 40% commission on $10,000/month in net earnings deducts $48,000/year in agency fees from their taxable income. Estimate your potential earnings with our OnlyFans Earnings Calculator.
Frequently Asked Questions
Do OnlyFans creators pay taxes?
Yes, all OnlyFans income is taxable. OnlyFans sends a 1099-NEC to the IRS for anyone earning $600+ in a year. You're responsible for reporting all income, paying self-employment tax (15.3%), federal income tax, and applicable state taxes. Failure to report OnlyFans income can result in penalties, interest, and potential legal issues.
How much should I set aside for taxes?
A safe rule of thumb is 25-35% of your net OnlyFans earnings. If you live in a high-tax state (California, New York, Oregon), lean toward 35%. If you live in a no-income-tax state (Texas, Florida, Nevada), 25-30% is typically sufficient. Use this calculator to get a more precise estimate based on your specific situation.
Can I deduct my OnlyFans agency fees?
Yes. Agency commissions are a legitimate business expense and are fully deductible against your OnlyFans income. This includes management fees, chatter commissions, and any other service fees charged by your agency.
Is this calculator accurate?
This calculator provides estimates based on 2025 federal tax brackets and self-employment tax rates. It uses simplified calculations and does not account for all possible deductions, credits, or special circumstances. For precise tax planning, consult a qualified tax professional. State tax rates shown are approximate effective rates and may vary based on your specific income and deductions.