YouTuber Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Montana

From capturing the Big Sky’s beauty to sharing unique content, being a YouTuber in Montana offers incredible opportunities – but it also comes with tax responsibilities. As a content creator earning income through platforms like YouTube, understanding federal and Montana state tax obligations is crucial for remaining compliant and maximizing potential deductions.

The IRS considers YouTube income as self-employment income. This means earnings over $400 require reporting on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions.

How Montana Handles Gig Worker Taxes

As a resident of Montana, filing a state income tax return is required, regardless of whether you owe taxes. Montana utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax rates are tiered, ranging from 1% to 6.75% based on taxable income. The primary form for self-employed individuals to report income and calculate tax liability is Form 2 (Montana Individual Income Tax Return). Montana also has a state adjusted gross income (AGI) calculation that may differ from the federal AGI, so careful attention to the form instructions is essential. Furthermore, Montana allows for itemized deductions similar to the federal level, which can help reduce your overall tax burden. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate reporting. Montana’s Department of Revenue provides detailed information and resources for taxpayers, including online filing options and tax forms. It's important to note that Montana does not have a sales tax, which simplifies some aspects of income reporting for YouTubers who may sell merchandise or digital products. However, this doesn't negate the need to accurately report all income earned through YouTube and related activities.

For more information, please visit the Montana Department of Revenue: https://revenue.mt.gov/

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 only used for work; it cannot double as a guest room or family space. “Regular use” means you use the space consistently 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 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: You can deduct the business-use percentage of your internet and phone bills. For example, if 75% of your internet usage is for YouTube-related work, you can deduct 75% of the bill. Maintaining a log of business usage can help substantiate this deduction.

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 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 covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).