OnlyFans Creator Taxes in Colorado - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in Colorado

The Rocky Mountain lifestyle offers unique opportunities, and for many Colorado creators, platforms like OnlyFans provide a flexible income stream. However, alongside creative freedom comes the responsibility of understanding and fulfilling tax obligations.

As an OnlyFans creator, income earned through the platform is considered self-employment income by the IRS. This means it must be reported on Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). Crucially, earning over $400 in net profit triggers the requirement to pay self-employment tax, covering both Social Security and Medicare contributions.

How Colorado Handles Gig Worker Taxes

Colorado, known for its independent spirit, extends that to its tax system for gig workers. As a resident of Colorado, you are required to file a state income tax return, even if your federal tax liability is zero. Colorado operates under a flat income tax rate, currently at 4.40% for the 2025 tax year. This means regardless of your income level, the percentage applied to your taxable income remains consistent. The primary form used for filing state income taxes as a self-employed individual is Form DR 0104, Colorado Individual Income Tax Return.

Colorado also requires the payment of estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. This prevents underpayment penalties. The Colorado Department of Revenue offers resources and online payment options for estimated taxes. It’s important to accurately calculate and remit these payments throughout the year. Furthermore, Colorado allows for certain deductions and credits that can reduce your overall tax liability, so thorough record-keeping is essential. The state also has specific rules regarding business expenses, which should be reviewed to maximize potential savings. You can find comprehensive information and resources on the Colorado Department of Revenue website: https://www.colorado.gov/revenue.

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. “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 for equipment directly used in your content creation are deductible. This includes computers, cameras, lighting, microphones, and relevant software subscriptions like Adobe Creative Cloud, video editing software, or website hosting fees.
• Internet & Phone Bill: You can deduct the portion of your internet and phone bills attributable to your OnlyFans business. For example, if you estimate 75% of your internet usage is for work-related activities (content creation, promotion, communication with fans), you can deduct 75% of the bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, if you occasionally travel for work-related purposes – such as meeting with collaborators or attending industry events – 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 is comprised of 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.