YouTuber Taxes in Minnesota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Minnesota

From showcasing the beauty of the North Shore to sharing your unique perspective on Minnesota life, being a YouTuber in the Land of 10,000 Lakes offers exciting opportunities – and tax responsibilities.

As a content creator earning income through YouTube, the IRS considers you self-employed. This means all revenue generated from your channel is taxable income and must be reported on Schedule C (Profit or Loss From Business) with your federal income tax return (Form 1040). Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions.

How Minnesota Handles Gig Worker Taxes

As a resident of Minnesota, filing a state income tax return is required, regardless of whether you owe any tax. Minnesota utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Minnesota Form M1, Individual Income Tax Return, to report their income and calculate their state tax liability. The income reported on your federal Schedule C will flow to your Minnesota return. Minnesota also has a state version of the standard deduction, and various credits and deductions that may apply. It’s important to note that Minnesota’s tax laws can be complex, and the state frequently updates its regulations. Minnesota also has a specific form, Schedule M1SE, for calculating self-employment tax, mirroring the federal calculation but applied to the state income tax base. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential deductions. The Minnesota Department of Revenue offers comprehensive resources and guidance for self-employed individuals; you can find more information at the Minnesota Department of Revenue website.

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your YouTube business. “Exclusive use” means that portion of your home is used solely for business purposes – 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: The cost of essential equipment like computers, cameras, microphones, lighting, and editing software (such as Adobe Creative Cloud subscriptions) are generally deductible as business expenses. If an item has a useful life of more than one year (e.g., a computer), it may need to be depreciated over its useful life.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if 80% of your internet usage is directly related to your YouTube channel (uploading videos, research, communication with sponsors), you can deduct 80% of the 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-related supplies, you can deduct those miles using the standard mileage rate (set annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from an employee’s paycheck. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes.