OnlyFans Taxes: What Every Creator Gets Wrong About the Money

In this guide

• The one sentence every creator needs to hear
• Why you are self-employed
• United States: 1099-NEC and the new $2,000 threshold
• United States: self-employment tax and quarterly payments
• United Kingdom: the £1,000 trading allowance
• Platforms now report to tax authorities
• Expenses and deductions
• The habits that save creators
• My take

I am a performer, not an accountant, and this is not tax advice. But after 14 years in this industry, I have seen one mistake destroy more creators’ finances than any scandal or algorithm change: not planning for taxes.

Here is the sentence every new creator needs to hear: the money that arrives in your bank account is not all yours. Part of it belongs to the tax authority, and they will ask for it, usually at the worst possible moment.

Let me explain the basics using official sources from the two places most creators ask about, the United States and the United Kingdom. Wherever you are, the same logic applies. Then talk to a professional in your own country.

Why you are self-employed

On OnlyFans, Fansly, Fanvue and similar platforms, creators are almost always treated as independent contractors, not employees. That means:

• The platform usually does not withhold income tax for you.
• There is no employer paying social security contributions for you.
• You are responsible for registering, reporting and paying.

If you want to understand how the platform’s own cut works first, read how OnlyFans works: fees and payouts. OnlyFans keeps 20% and pays creators 80% of what fans spend, and taxes come out of your 80%.

United States: 1099-NEC and the new $2,000 threshold

US businesses that pay independent contractors report those payments to the IRS on Form 1099-NEC. For years the threshold was $600. According to the IRS instructions, for payments made after December 31, 2025, the threshold is $2,000, and it will be adjusted for inflation in later years (IRS, Instructions for Forms 1099-MISC and 1099-NEC).

Two important points:

• Not receiving a 1099 does not mean you do not owe tax. All income is taxable, whether or not a form is issued.
• The IRS receives a copy of the form, so it knows what the platform paid you.

The tax authority is not your enemy. But it is the one business partner you can never ignore.

United States: self-employment tax and quarterly payments

This is the part that surprises people. As a self-employed person in the US, you pay self-employment tax on top of income tax. According to the IRS, the rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare, and it is calculated on 92.35% of net earnings. You generally have to pay it if your net earnings from self-employment are $400 or more (IRS, Self-employment tax).

Because nobody withholds tax for you, the IRS also expects you to pay during the year through estimated tax payments, usually quarterly using Form 1040-ES, if you expect to owe $1,000 or more when you file (IRS, Estimated taxes). If you do not, you may owe penalties.

Self-employed people usually report business income and expenses on Schedule C, which is where deductions come in (IRS, Schedule C).

United Kingdom: the £1,000 trading allowance

In the UK, income from selling content or services online is generally treated as trading income. According to GOV.UK, you have a £1,000 trading allowance each tax year. If your income from all trading activities is above £1,000, you generally need to register for Self Assessment and tell HMRC (GOV.UK, Online platforms income).

The allowance is one allowance, not one per platform. If you earn £700 on one site and £600 on another, you are over the limit. The UK government’s “Tax help for hustles” campaign explains this in simple language (HMRC, Tax help for hustles).

Platforms now report to tax authorities

Many creators still think tax authorities do not know about platform income. That is increasingly false.

• In the UK, from January 2024, many digital platforms collect and share information about sellers’ income with HMRC, under internationally agreed reporting rules (GOV.UK).
• In the European Union, the DAC7 directive requires digital platforms to report information about many sellers and service providers to tax authorities (European Commission).
• In the US, the 1099 system already gives the IRS copies of what platforms pay contractors.

The direction is clear: more transparency, not less.

Expenses and deductions

The good news is that self-employed people can usually deduct ordinary and necessary business expenses from their income. For creators, that might include:

• Cameras, lighting, microphones and phones used for work.
• Editing software and subscriptions.
• Costumes, props and content production costs.
• A share of internet and phone bills used for work.
• Accountant, legal and takedown service fees.
• Marketing and promotion costs, which I discuss in how to promote your OnlyFans.
• Payments to editors, photographers or managers, but read OnlyFans chatters and agencies before you hand over a percentage.

Rules differ hugely by country, and personal items you would buy anyway are often not deductible. The key word is receipts. If you cannot prove it, you cannot deduct it.

The habits that save creators

These are simple habits that I have seen protect creators year after year:

1. Separate bank account. Business income and expenses in one place.
2. Set aside a percentage of every payout. Many accountants suggest putting aside a fixed share, often 25% to 35% depending on your situation, in a separate savings account.
3. Keep records monthly, not in a panic once a year.
4. Download your platform statements regularly.
5. Hire a qualified accountant who understands creator income and does not judge your work.
6. Know your tax residence. Where you live and for how long determines where you pay tax. If you move countries, get advice before you move.
7. Consider a company structure only when income justifies it, and only with professional advice.

The numbers behind the headlines

When you read that OnlyFans paid creators $6.3 billion in its 2025 financial year, as I explain in OnlyFans business numbers, remember that this is before tax. A creator who earns $10,000 in a month after platform fees is not $10,000 richer. After income tax, social contributions and expenses, the real number can be much lower. That is why I always say: look at what you keep, not what you earn.

My take

I love the creator economy because it gave performers ownership of their work. But ownership means responsibility. When you work for a studio, someone else handles the paperwork. When you are a creator, you are the studio, the marketing department and the accounts department.

The creators I know who last for years are not always the most famous. They are the ones who treat this as a business from day one: they save, they keep records, they pay their taxes and they sleep well. The ones who spend every payout often end up working harder just to pay old debts.

So enjoy your first big month. Celebrate it. Then move a part of it to a separate account and call an accountant. Your future self will thank you.

For the life stories of performers who built real businesses, and some who lost everything, visit House of Maximo.

To follow my work, visit maximogarciaworld.com, and for the 18+ side, fuckingpornstars.net.

General information based on official sources at the time of writing. Not tax or legal advice. Tax rules change and depend on your country and personal situation; consult a qualified professional.

Sources

1. IRS. Instructions for Forms 1099-MISC and 1099-NEC.
2. IRS. Self-employment tax (Social Security and Medicare taxes).
3. IRS. Estimated taxes.
4. IRS. About Schedule C (Form 1040), Profit or Loss from Business.
5. GOV.UK. Check if you need to tell HMRC about income from online platforms.
6. HMRC. Tax help for hustles.
7. European Commission. DAC7: reporting by digital platform operators.