YouTuber Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Michigan

From showcasing the beauty of the Great Lakes to building a community around Michigan-made content, being a YouTuber in the Mitten State offers unique opportunities – and unique tax responsibilities.

As a content creator earning income through YouTube, the IRS considers this self-employment income. This means reporting earnings on Schedule C (Profit or Loss from Business) with Form 1040, and being responsible for paying both income tax and self-employment tax on net earnings exceeding $400. Accurate record-keeping throughout the year is crucial for maximizing deductions and ensuring compliance.

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 will primarily use Form MI-1040 (Michigan's Individual Income Tax Return) to report their income and calculate their state tax liability. Schedule 1 of Form MI-1040 is used to report business income and expenses, mirroring the federal Schedule C. Michigan also requires the payment of estimated taxes quarterly if your expected tax liability exceeds $500. Failing to pay estimated taxes can result in penalties. The Michigan Department of Treasury offers resources and online tools to help taxpayers understand their obligations and file accurately. It’s important to note that Michigan does not have a separate self-employment tax like the federal government; however, the federal self-employment tax impacts your overall tax picture. Furthermore, Michigan allows for certain business credits and deductions that can reduce your state tax liability, so thorough research is recommended. Keep detailed records of all income and expenses to support your claims.

You can find more information and resources on the Michigan Department of Treasury website: Michigan Department of Treasury

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To claim 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 YouTube-related activities – 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), 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 business use. For example, if 75% of your internet usage is for YouTube-related tasks, 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 annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax covers your contributions to Social Security and Medicare. Employees have these taxes withheld from their paychecks, but as a self-employed individual, you are responsible for paying both the employer and employee portions. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).