OnlyFans Creator Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in Michigan

Michigan’s vibrant creative landscape extends to the digital realm, and as an OnlyFans creator residing in the Great Lakes State, understanding your tax obligations is crucial for long-term success. Revenue generated through platforms like OnlyFans is considered self-employment income by the IRS, requiring diligent record-keeping and accurate tax filing.

Federally, income earned as an OnlyFans creator must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, if net earnings (income minus expenses) exceed $400, self-employment tax applies. This covers both Social Security and Medicare contributions for self-employed individuals, functioning as the equivalent of employer and employee portions.

How Michigan Handles Gig Worker Taxes

As a resident of Michigan, a state income tax return is required regardless of income level. Michigan operates under a flat income tax rate, currently at 4.05% for the 2025 tax year. This means all taxable income is taxed at the same rate. Self-employed individuals in Michigan report their business income and expenses on Form MI-1040, Schedule 1 (Supplemental Income and Adjustments). It’s important to note that Michigan does not offer a separate self-employment tax calculation like the federal government; the federal self-employment tax is calculated separately and does not directly impact your Michigan income tax liability. However, the deductible portion of your self-employment tax (one-half of the amount paid) is subtracted from your gross income when calculating your Michigan adjusted gross income (AGI). Michigan also offers various credits and deductions that may apply, such as the Earned Income Tax Credit, and it’s recommended to explore these options to minimize your tax burden. Accurate record-keeping of all income and expenses is paramount, as Michigan may request documentation to support claims made on your return. For comprehensive information and resources, please visit the Michigan Department of Treasury website: Michigan Department of Treasury.

Key Tax Deductions for Home-Based OnlyFans Creators

• Home Office Deduction: The home office deduction allows creators to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is used solely for your OnlyFans work – it cannot be used for personal purposes. “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: Expenses for essential equipment like computers, cameras, lighting, and software subscriptions (e.g., Adobe Creative Cloud, website hosting, editing software) directly related to content creation are deductible business expenses.
• 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. Carefully track your usage to justify the business-use percentage.

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 covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. It’s applied to your net earnings (income after expenses) exceeding $400.