OnlyFans Creator Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in Arkansas

The Natural State offers a unique landscape for digital entrepreneurship, and as an OnlyFans creator residing in Arkansas, understanding your tax obligations is crucial for long-term success. Income earned through platforms like OnlyFans is considered self-employment income and is fully taxable at both the federal and state levels.

The IRS requires all self-employed individuals, including OnlyFans creators, to report their earnings on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure proper reporting and maximize potential deductions.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, a state income tax return is required regardless of income level. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Arkansas’ tax brackets are expected to remain similar to prior years, ranging from 0% to 5.9% depending on your filing status and taxable income. The primary form for self-employed individuals to report income and calculate Arkansas state income tax is Form AR1040. It's important to note that Arkansas does not offer a separate form specifically for self-employment income; it's all integrated into the standard individual income tax return. Additionally, Arkansas allows for a deduction for federal income taxes paid, which can help reduce your state tax liability. Keep detailed records of all income and expenses to accurately complete your AR1040. Arkansas also has provisions for estimated tax payments if you anticipate owing more than $1,000 in state income tax. Failing to make these payments could result in penalties. For the most up-to-date information and forms, please visit the Arkansas Department of Finance and Administration: Arkansas Department of Finance and Administration.

Key Tax Deductions for Home-Based OnlyFans Creators

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business purposes. “Exclusive use” means that portion of your home is used solely for your OnlyFans work – it cannot double as a guest room or family space. “Regular use” implies consistent and frequent use for business activities. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: Expenses related to equipment essential for content creation are deductible. This includes the cost of computers, cameras, lighting, microphones, and any necessary software subscriptions like Adobe Creative Cloud, video editing software, or website hosting services.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your OnlyFans work. For example, if 80% of your internet usage is for content creation, you can deduct 80% of your internet bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, if you occasionally travel for work-related activities – such as meeting with collaborators or purchasing equipment – you can deduct those miles using the standard mileage rate set by the IRS.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when you are traditionally employed. You are responsible for paying both portions as a self-employed individual.