Let's get the scary part out of the way first: OnlyFans reports your earnings to the IRS. If you made more than $600 in a year, they send you a 1099 form, and the IRS gets a copy too. This means pretending your OnlyFans income doesn't exist isn't an option - it's tax evasion, and the consequences are severe.
But here's the good news: with the right knowledge and strategy, you can legally minimize your tax burden, claim thousands in deductions, and avoid the panic that comes every April. Most creators overpay on taxes simply because they don't understand what they're allowed to deduct or how self-employment tax actually works.
This guide breaks down everything you need to know about OnlyFans taxes in 2025 - from self-employment tax to quarterly payments to business structures. Consider this your roadmap to staying legal, keeping more of your money, and sleeping well at night.
Understanding Self-Employment Tax: The 15.3% Surprise
When you work a traditional job, your employer pays half of your Social Security and Medicare taxes (7.65%), and you pay the other half. As an OnlyFans creator, you're self-employed, which means you pay both halves - a total of 15.3%.
This is separate from your income tax. Self-employment tax is calculated on your net earnings (revenue minus expenses), and it's one of the biggest shocks new creators face when they file their first tax return.
Example Tax Calculation: You earned $100,000 on OnlyFans. After deducting $20,000 in business expenses, your net income is $80,000. Your self-employment tax is $80,000 × 15.3% = $12,240. Then you also owe income tax on that $80,000 based on your tax bracket (anywhere from 10-37% federal, plus state taxes).
Many creators see $100,000 in earnings and think they're rich - then get hit with a $35,000+ tax bill they didn't plan for. The key is understanding this upfront and setting aside money throughout the year.
Quarterly Estimated Tax Payments: Pay As You Go
Unlike traditional employees who have taxes withheld from each paycheck, self-employed creators are responsible for making quarterly estimated tax payments to the IRS. These are due four times per year:
- April 15: Payment for January 1 - March 31
- June 15: Payment for April 1 - May 31
- September 15: Payment for June 1 - August 31
- January 15 (next year): Payment for September 1 - December 31
If you don't make quarterly payments and owe more than $1,000 when you file your annual return, the IRS will charge you penalties and interest. This is where many creators get caught - they skip quarterly payments, then face a massive bill plus penalties in April.
How Much to Pay Quarterly: A safe rule of thumb is to set aside 30-35% of your net income (after deducting business expenses) for taxes. So if you earned $10,000 this quarter and had $2,000 in business expenses, set aside $2,400-$2,800 for your quarterly payment.
You can make these payments through the IRS website (IRS Direct Pay) or by mail. Some creators prefer to overpay slightly throughout the year and get a refund rather than risk underpaying and owing penalties.
Deductible Business Expenses: Keep More of Your Money
This is where smart tax strategy makes a massive difference. Any expense that is ordinary and necessary for your OnlyFans business is tax-deductible. This lowers your taxable income, which means you pay less in both income tax and self-employment tax.
Most creators drastically underestimate what they can deduct. Here's a comprehensive list:
Equipment and Technology
- Phone (percentage used for business)
- Camera equipment and lenses
- Ring lights and lighting equipment
- Laptop or computer
- Tripods, mounts, and accessories
- Microphones and audio equipment
Internet, Software, and Subscriptions
- Internet service (percentage used for business)
- Photo and video editing software (Adobe Creative Cloud, etc.)
- OnlyFans management apps and tools
- Cloud storage (Google Drive, Dropbox, etc.)
- VPN services for privacy
- Website hosting and domain registration
Content Creation Expenses
- Lingerie, costumes, and outfits (worn exclusively for content)
- Props and accessories for shoots
- Makeup and beauty products (used for content)
- Wigs and hair extensions
- Background materials and set decorations
Home Office Deduction
- Portion of rent/mortgage for dedicated workspace
- Utilities (electricity, heating, etc.) for business space
- Furniture for content creation area (bed, couch if used exclusively for content)
- Decorations and improvements to filming space
Professional Services
- OnlyFans management agency fees
- Accountant and tax preparation fees
- Legal consultations
- Business coaching or courses
- Marketing and promotion costs
Other Deductible Expenses
- Bank fees for business accounts
- Merchant processing fees (OnlyFans' 20% cut is NOT deductible - it's already removed from your 1099)
- Travel for content creation (hotel, flights if doing location shoots)
- Gym membership (if fitness content is part of your brand)
- Health insurance premiums (if self-employed)
The Golden Rule: You can only deduct expenses that are used exclusively or primarily for your business. A phone used 50% for business and 50% for personal use can be 50% deducted. Lingerie worn only for content shoots is 100% deductible. Lingerie you also wear in your personal life is not deductible.
| Expense Category | Example Items | Average Annual Deduction |
|---|---|---|
| Equipment | Phone, camera, laptop, lights | $2,500 - $5,000 |
| Software & Internet | Editing apps, cloud storage, internet | $1,200 - $2,400 |
| Content Supplies | Outfits, props, makeup, wigs | $3,000 - $8,000 |
| Home Office | Rent portion, utilities, furniture | $4,000 - $10,000 |
| Professional Services | Agency, accountant, legal | $2,000 - $6,000 |
For a creator earning $100,000/year, these deductions could easily total $15,000-30,000 - which translates to saving $5,000-10,000+ in taxes.
Business Structures: Sole Proprietor vs LLC
When you start earning on OnlyFans, you're automatically a sole proprietor by default. This is the simplest structure - you report your income on Schedule C of your personal tax return, and you're personally liable for everything related to the business.
Should you form an LLC? It depends on your earnings and risk tolerance.
Sole Proprietorship
Pros: Simple, no formation costs, easy tax filing
Cons: No liability protection, business and personal assets are not separated
Best for: New creators earning under $50,000/year
LLC (Limited Liability Company)
Pros: Liability protection, separates business and personal assets, appears more professional
Cons: Formation costs ($100-800 depending on state), annual fees, more complex recordkeeping
Best for: Creators earning $50,000+/year who want legal protection
Tax Note: By default, an LLC is taxed the same as a sole proprietorship (pass-through taxation). You can elect S-Corp status once you're earning $75,000+ to potentially save on self-employment tax, but this requires payroll and more complex tax filing. Consult an accountant before making this choice.
Most creators start as sole proprietors and form an LLC once they're consistently earning $3,000-5,000/month. The liability protection becomes valuable when you have significant income and assets to protect.
Record Keeping: Your Tax Survival System
The IRS requires you to keep records of all income and expenses for at least three years (seven years is safer). Good record keeping is the difference between a smooth tax season and an audit nightmare.
Your record keeping system should include:
- Income tracking: Save all 1099 forms from OnlyFans, track tips and PPV separately
- Expense receipts: Digital or physical receipts for every business purchase
- Mileage logs: If you drive for business (content shoots, post office, etc.)
- Bank statements: Keep separate business bank account (highly recommended)
- Credit card statements: If using a business credit card
Recommended Tools:
- QuickBooks Self-Employed: Tracks income, expenses, mileage, and estimates quarterly taxes ($15/month)
- Wave: Free accounting software for small businesses
- Expensify: Easy receipt scanning and expense tracking ($5/month)
- Google Sheets/Excel: Free option if you're disciplined about manual tracking
At minimum, create a spreadsheet where you log every expense with date, amount, category, and what it was for. Take photos of receipts immediately and store them in a dedicated folder (digital or physical).
What Happens If You Don't File?
Let's address the elephant in the room: what if you just... don't file? Some creators think they can fly under the radar, especially if they're using a stage name. This is a terrible idea.
Here's what actually happens:
- The IRS knows: OnlyFans sends a 1099 with your Social Security number. The IRS has it.
- Penalties compound: Failure-to-file penalty is 5% per month (up to 25% of unpaid taxes)
- Interest accrues: The IRS charges interest on unpaid taxes at 3-8% annually
- Eventually, enforcement: Wage garnishment, bank account levies, property liens
- Potential criminal charges: In extreme cases, tax evasion is a felony
Real Example: A creator earned $85,000 over two years but didn't file because she thought using a stage name meant the IRS wouldn't know. She was eventually contacted by the IRS and owed $32,000 in back taxes, plus $8,000 in penalties and interest. She went on a payment plan that took three years to pay off, during which she couldn't get approved for an apartment lease or car loan.
The consequences of not filing are always worse than just paying what you owe. If you can't afford your full tax bill, the IRS offers payment plans - but you must file your return and communicate with them.
Working with an Accountant: Worth Every Penny
Should you hire an accountant or use TurboTax? Here's the breakdown:
Use TurboTax Self-Employed if:
- You're earning under $40,000/year
- You have straightforward expenses and good records
- You're comfortable with tax software and following instructions
- Cost: $90-120/year
Hire an accountant if:
- You're earning $40,000+/year
- You have an LLC or are considering one
- You have complicated expenses or multiple income streams
- You want to maximize deductions and minimize audit risk
- Cost: $500-2,000/year
"I spent $800 on an accountant my first year earning six figures on OnlyFans. She found $12,000 in deductions I didn't know I could claim and saved me about $4,500 in taxes. Best $800 I've ever spent." - Rachel, Top 1% Creator
A good accountant who specializes in self-employed individuals or content creators will pay for themselves through tax savings and peace of mind. They also know industry-specific deductions and can defend your return if you're ever audited.
Your 2025 Tax Action Plan
Here's your step-by-step plan for staying tax-compliant and minimizing your burden:
- January: Receive 1099 from OnlyFans, gather all expense receipts from previous year
- February-March: File taxes (or hire accountant), set up quarterly payment system
- April 15: Make Q1 quarterly payment
- June 15: Make Q2 quarterly payment
- September 15: Make Q3 quarterly payment
- Throughout year: Track expenses weekly, maintain receipt system, keep 30-35% of net income in separate savings account for taxes
- December: Review year's earnings, make final purchases for deductions, plan for next year
Pro Tip: Open a separate savings account called "Tax Fund" and automatically transfer 30-35% of every OnlyFans deposit into it. When quarterly payment deadlines arrive, the money is already there waiting. You'll never scramble to pay the IRS.
The Bottom Line
Taxes are unavoidable, but tax stress is optional. With proper planning, record keeping, and knowledge of deductions, you can minimize what you owe and avoid penalties.
The creators who thrive long-term are the ones who treat OnlyFans like a real business from day one - and that includes handling taxes properly. Set aside money quarterly, track your expenses diligently, claim every legitimate deduction, and consider hiring a professional once you're earning meaningful income.
Tax compliance isn't exciting, but it's the foundation of a sustainable, stress-free creator business. Do it right, and you'll never lose sleep over an IRS letter.