Twitch Streamer Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Texas

From the bustling gaming communities of Austin to the dedicated streamers across the Lone Star State, building a following on Twitch can be a rewarding venture. However, alongside the cheers and subscriptions comes the responsibility of understanding and fulfilling tax obligations.

As a Twitch streamer operating as an independent contractor in Texas, the IRS considers income earned through the platform as self-employment income. This means it must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, earning over $400 in net profits triggers the requirement to pay self-employment tax, covering both Social Security and Medicare contributions.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million in revenue) that rarely applies to solo gig workers, it's a key part of the state's business tax structure. Texas doesn’t have a traditional state income tax for individuals, meaning Twitch streamers won’t file a state income tax return based on their streaming income. However, if your streaming business is structured as a legal entity like an LLC or S-Corp, it may be subject to the Franchise Tax, even if your revenue is below the $1.2 million threshold if you meet other criteria. It’s important to understand that even without state income tax, your federal tax obligations remain. Furthermore, if you sell merchandise or have a physical presence in Texas, you may need to collect and remit sales tax. Staying informed about these nuances is crucial for maintaining compliance. The Texas Comptroller of Public Accounts provides detailed information on business taxes and regulations.

For more information, visit the Texas Comptroller website.

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your Twitch streaming business. “Exclusive use” means that portion of your home is used solely for streaming – it can’t double as a guest room or family space. “Regular use” means you use it 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 your computer, webcam, microphone, lighting, streaming software subscriptions (like OBS Studio Pro), and creative software subscriptions (like Adobe Creative Cloud if used for creating stream graphics or videos).
• 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 home-based worker, mileage deductions are less common for Twitch streamers. However, if you occasionally travel for streaming-related events, client meetings, or to purchase equipment, you can deduct those business miles using the standard mileage rate.

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 Social Security and Medicare taxes withheld from employees’ paychecks. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes.