OnlyFans Creator Taxes in New Jersey - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in New Jersey

Navigating the Garden State’s vibrant digital landscape as an OnlyFans creator comes with unique financial responsibilities, and understanding those tax obligations is crucial for long-term success. Income earned through platforms like OnlyFans is considered self-employment income by the IRS, meaning creators are responsible for reporting earnings and paying all applicable taxes.

Federally, all income received through OnlyFans must be reported on Schedule C (Profit or Loss from Business) when filing Form 1040. Crucially, if net earnings (income minus business expenses) exceed $400, self-employment tax applies. This covers both Social Security and Medicare contributions for self-employed individuals, functioning as the equivalent of what an employer would pay on your behalf.

How New Jersey Handles Gig Worker Taxes

As a resident of New Jersey, a state income tax return is required regardless of income level. New Jersey operates on a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, New Jersey utilizes several tax brackets, and the specific rates will be determined by your filing status and total taxable income. The primary form for self-employed individuals to report income and calculate their New Jersey income tax liability is Form NJ-1040, along with Schedule NJ-NR-E (for net earnings from self-employment).

New Jersey also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. This prevents penalties at the end of the year. Failure to file and pay estimated taxes can result in underpayment penalties. Furthermore, New Jersey allows for certain deductions that can reduce your taxable income, such as business expenses similar to those allowed on the federal Schedule C. It’s important to note that New Jersey does not automatically mirror all federal deductions; some may require specific state-level adjustments. Keep meticulous records of all income and expenses to ensure accurate reporting. For detailed information and current tax rates, refer to the official New Jersey Division of Taxation website: https://www.nj.gov/treasury/taxation/

Key Tax Deductions for Home-Based OnlyFans Creators

• 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 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 OnlyFans business 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: You can deduct the business-use percentage of your internet and phone bills. If you use these services for both personal and business purposes, you must determine the percentage of time they are used for your OnlyFans work. For example, if 75% of your internet usage is for business, you can deduct 75% of the bill.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common. However, if you occasionally travel for client meetings, promotional events, 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 is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax covers your contributions to these programs, mirroring the contributions an employer would typically make. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI) on Form 1040.