YouTuber Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Arkansas

From filming scenic vlogs along the Buffalo National River to sharing gaming content with a growing audience, being a YouTuber in Arkansas offers unique opportunities – and unique tax responsibilities.

As a content creator earning income through YouTube, the IRS considers this self-employment income. This means all earnings over $400 must be reported to the IRS on Schedule C (Profit or Loss From Business) with your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions.

How Arkansas Handles Gig Worker Taxes

Arkansas, known for its natural beauty and growing entrepreneurial spirit, requires residents to file a state income tax return if their income exceeds certain thresholds. As a self-employed YouTuber residing in Arkansas, you are obligated to report your YouTube income on your Arkansas state income tax return. Arkansas operates under a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, the rates are tiered, ranging from 0% to 5.9%. The primary form for self-employed individuals to report income and calculate tax liability is Form AR1040.

Arkansas also requires estimated tax payments if you expect to owe $1,000 or more in state income tax. These payments are typically made quarterly. Failing to make sufficient estimated tax payments can result in penalties. It’s important to accurately track income and expenses throughout the year to ensure proper tax calculations. The Arkansas Department of Finance and Administration provides detailed information and resources for self-employed individuals, including payment options and filing instructions. You can find more information at Arkansas Department of Finance and Administration.

Remember to keep meticulous records of all income and expenses, as these will be essential when filing both your federal and Arkansas state tax returns.

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your YouTube business. “Exclusive use” means that portion of your home is used solely for business purposes – it cannot double as a guest room or family space. “Regular use” means you use the space consistently for your business. 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: The cost of equipment essential to your YouTube channel is generally deductible. This includes computers, cameras, microphones, lighting, editing software (like Adobe Premiere Pro or Final Cut Pro), and website hosting fees. If an item has a useful life of more than one year (e.g., a computer), it may need to be depreciated over several years.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your YouTube channel. For example, if 75% of your internet usage is for editing videos and uploading content, you can deduct 75% of your internet bill.

Note on Mileage: As a home-based YouTuber, mileage deductions are less common. However, if you occasionally travel for client meetings, filming locations outside your home, or to purchase business supplies, you can deduct those business-related miles using the standard mileage rate set by the IRS.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from an employee’s paycheck. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes.