OnlyFans Creator Taxes in Minnesota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in Minnesota

Navigating the tax landscape as a content creator in the Land of 10,000 Lakes requires careful attention to both federal and Minnesota state regulations. Income earned through platforms such as OnlyFans is generally considered self-employment income, meaning creators are responsible for reporting earnings and paying applicable taxes.

The IRS requires all self-employed individuals earning over $400 in net profit to file a Schedule C (Profit or Loss from Business) with their Form 1040. This income is then subject to self-employment tax, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is crucial for maximizing deductions and ensuring compliance.

How Minnesota Handles Gig Worker Taxes

As a resident of Minnesota, a state income tax return is required regardless of income level. Minnesota utilizes a graduated income tax system, meaning the tax rate increases as income increases. For the 2025 tax year, Minnesota residents earning income as independent contractors or self-employed individuals will primarily use Form M1, Minnesota Income Tax Return, along with Schedule 1, which is used to calculate adjustments to income, including self-employment tax deductions. Minnesota also has a specific form, Schedule SE, for calculating the self-employment tax deduction. It's important to note that Minnesota does not automatically mirror federal tax law changes; therefore, staying updated on state-specific legislation is vital. The state also offers various credits and deductions that may be applicable to self-employed individuals, such as the Working Family Credit. Furthermore, estimated tax payments are generally required quarterly if a creator anticipates owing more than $1,000 in Minnesota income tax. Failure to make timely estimated payments can result in penalties. Resources for Minnesota tax information can be found on the Minnesota Department of Revenue website: https://www.revenue.state.mn.us/. Understanding Minnesota’s specific rules regarding income apportionment for multi-state income is also important if income is sourced from outside of Minnesota.

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” 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 content creation is deductible. This includes computers, cameras, lighting, microphones, and any necessary software subscriptions like Adobe Creative Cloud, video editing software, or website hosting fees.
• 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. For example, if 75% of your internet usage is for business, you can deduct 75% of your internet bill.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common. However, any travel directly related to your OnlyFans business – such as meeting with collaborators, attending industry events, or purchasing props – can be claimed using the standard mileage rate or actual expenses.

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 working for a traditional employer. You are both the employer and the employee in this scenario, and therefore responsible for the full amount. However, one-half of the self-employment tax is deductible from your gross income.