YouTuber Taxes in Rhode Island - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Rhode Island

From filming scenic shots along the Narragansett Bay to sharing Ocean State insights, being a YouTuber in Rhode Island offers unique opportunities – and unique tax responsibilities.

As a content creator earning income through YouTube, the IRS considers this self-employment income. This means all earnings over $400 must be reported to the IRS 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 Rhode Island Handles Gig Worker Taxes

As a resident of Rhode Island, filing a state income tax return is required, even if no federal tax is due. Rhode Island employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Rhode Island residents earning income as self-employed individuals will primarily use Form RI-1040NR to report their earnings. This form, along with Schedule RI-1040-IC (Income from a Trade or Business), is used to calculate your state income tax liability. Rhode Island also has a minimum tax for those with significant deductions. It’s important to note that Rhode Island allows for a deduction for federal taxes paid, which can help reduce your state tax burden. Furthermore, Rhode Island’s tax rates are subject to change, so staying updated with the latest information from the Division of Taxation is crucial. Estimated tax payments are generally required quarterly if you expect to owe $1,000 or more in Rhode Island income tax. Failure to make timely estimated payments can result in penalties. Rhode Island also offers various credits and incentives that YouTubers may be eligible for, depending on their specific business activities.

For the most up-to-date information and forms, please visit the Rhode Island Division of Taxation: https://www.ri.gov/taxation/

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” 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 YouTube channel is generally deductible. This includes computers, cameras, microphones, lighting, editing software (like Adobe Premiere Pro or Final Cut Pro), and website hosting fees. These are typically depreciated over their useful life, but Section 179 expensing may allow for immediate deduction of some costs.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your YouTube channel. Carefully track your usage to support 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 is essentially the equivalent of the employer and employee portions of these taxes when you are traditionally employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).