Twitch Streamer Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Delaware

From the beaches of Rehoboth to the bustling city of Wilmington, Delaware’s growing community of Twitch streamers contributes to a vibrant digital economy – and with that comes tax responsibilities. As a self-employed streamer, understanding these obligations is crucial for staying compliant with both federal and state regulations.

The IRS considers income earned through Twitch streaming as self-employment income. This means all earnings over $400 must be reported to the IRS on Schedule C (Profit or Loss From Business) as part of your Form 1040. Furthermore, this income is subject to self-employment tax, covering both Social Security and Medicare contributions.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, a state income tax return is required, regardless of income level. Delaware utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Delaware residents will file using Form 1040-D, the Delaware Individual Income Tax Return. The rates for the 2025 tax year (based on 2024 rates, as 2025 rates are not yet finalized) are as follows: 0% on the first $13,800 of taxable income for single filers, 3.1% on income between $13,801 and $25,000, 4.9% on income between $25,001 and $60,000, 5.55% on income between $60,001 and $125,000, and 6.6% on income over $125,000. Married filing jointly rates are double the single rates. Delaware also offers various credits and deductions that may reduce your tax liability. It’s important to note that Delaware does not have local income taxes levied by cities or counties. Delaware’s Division of Revenue provides comprehensive information and resources for taxpayers, including downloadable forms and instructions. You can find more information at Delaware Division of Revenue.

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for your streaming business. “Exclusive use” means that portion of your home is only used for streaming – it cannot double as a guest room or family space. “Regular use” means you use the space consistently for your streaming 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, and other home-related expenses based on the square footage used for business).
• Hardware & Software: The cost of essential hardware and software used for streaming is generally deductible. This includes computers, webcams, microphones, lighting equipment, and subscriptions to streaming software, graphic design programs (like Adobe Creative Cloud), and 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 streaming activities. Carefully track your usage to accurately determine this percentage.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, if you occasionally travel for streaming-related events, client meetings, or to purchase equipment, you can deduct those business-related miles.

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.