OnlyFans Creator Taxes in South Dakota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in South Dakota

The Black Hills may be known for its natural beauty and Mount Rushmore, but South Dakota is also becoming a hub for digital entrepreneurship, including content creation on platforms like OnlyFans. Success on OnlyFans, however, comes with tax responsibilities. As a creator earning income through this platform, understanding those obligations is crucial for avoiding penalties and maximizing financial well-being.

The IRS considers income earned through OnlyFans as self-employment income. This means all earnings are subject to federal income tax and, importantly, self-employment tax. All income must be reported on Schedule C (Profit or Loss from Business) when filing your federal tax return (Form 1040). If net earnings (income minus business expenses) exceed $400, self-employment tax applies.

How South Dakota Handles Gig Worker Taxes

South Dakota stands out as one of the few states with no state income tax. This means OnlyFans creators in the Mount Rushmore State won’t need to file a state income tax return or pay state income tax on their earnings. However, this does not exempt you from federal tax obligations. The IRS still requires reporting of all income, and self-employment taxes are still due. South Dakota does collect sales tax, but this generally doesn’t apply to digital services like OnlyFans subscriptions. However, if you sell physical merchandise related to your OnlyFans content, you will need to collect and remit South Dakota sales tax. Given South Dakota’s relatively low cost of living and lack of state income tax, many creators are choosing to establish residency here, but it’s vital to remember that federal tax laws still apply regardless of location. The state’s focus on economic development and attracting entrepreneurs means resources are available to help understand business regulations, even if direct income tax guidance isn’t needed. It's important to stay informed about any potential changes to state laws that could impact digital businesses.

For more information on business resources in South Dakota, visit the South Dakota Small Business Development Centers.

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 can’t double as a guest room or family space. “Regular use” means you use it 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.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. If you use your internet and phone for both personal and business purposes, you need to determine the percentage of time dedicated to your OnlyFans work and deduct that portion of the expenses.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for any trips taken specifically for business purposes, such as meeting with a photographer, attending a relevant conference, or purchasing supplies. Keep detailed records of these trips.

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 employer and employee portions of these taxes when you are traditionally employed. It’s important to factor this into your overall tax planning, as it represents a significant portion of your tax liability.