Twitch Streamer Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Oregon

From the vibrant gaming communities of Portland to the dedicated streamers across the state, Oregon’s Twitch community is thriving, but success on the platform comes with tax responsibilities. As a self-employed streamer, understanding these obligations is crucial for staying compliant with both federal and Oregon state tax laws.

The IRS considers income earned through Twitch streaming as self-employment income. This means all earnings over $400 must be reported to the IRS on Schedule C (Profit or Loss From Business) as part of your Form 1040. Furthermore, this income is subject to self-employment tax, covering both Social Security and Medicare contributions.

How Oregon Handles Gig Worker Taxes

As a resident of Oregon, a state income tax return is required even if your federal tax liability is zero. Oregon utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Oregon taxpayers will file using Form OR-40, the Oregon Individual Income Tax Return. Self-employed individuals will also need to complete Schedule OR-SB, which is used to calculate income subject to Oregon tax. Oregon’s tax brackets are adjusted annually, so it’s important to consult the Oregon Department of Revenue website for the most up-to-date rates. Unlike some states, Oregon does not offer a separate state self-employment tax; your federal self-employment tax calculation impacts your Oregon income tax liability. Estimated tax payments are generally required quarterly if you expect to owe more than $1,000 in Oregon state income tax. Failing to make timely estimated payments can result in penalties. Oregon also allows for certain credits and deductions that can reduce your tax burden, so thorough record-keeping is essential. The state also has specific rules regarding nexus for out-of-state income, which may apply if you have significant business activity outside of Oregon. For detailed information and resources, please visit the Oregon Department of Revenue: Oregon Department of Revenue.

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for your streaming business. “Exclusive use” means that portion of your home is used solely for streaming – it cannot double as a guest room or family room. “Regular use” means you use the space consistently for your streaming 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 hardware and software used for streaming is generally deductible. This includes computers, webcams, microphones, lighting, streaming software, and subscriptions to services like Adobe Creative Cloud or hosting platforms. These are typically depreciated over their useful life, or, under Section 179, may be eligible for immediate expensing up to certain limits.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if you use your internet 75% for streaming and 25% for personal use, you can deduct 75% of the cost. Accurate record-keeping is vital to substantiate this deduction.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, you can claim mileage for any occasional trips taken specifically for business purposes, such as attending industry events or meeting with sponsors.

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 you are traditionally employed. You are responsible for paying both portions as a self-employed individual.