The core idea
Upwork, Etsy, Twitch, YouTube and Patreon do not withhold tax. Whatever they pay out is income you report yourself, and tax applies to profit: income minus allowable business expenses.
United States (2026)
- Self-employment tax: 15.3% on 92.35% of net profit. The 12.4% Social Security part stops at the $184,500 wage base; the 2.9% Medicare part does not. Half of the total is deductible.
- Income tax: after a standard deduction of $16,100 (single) or $32,200 (married filing jointly), federal brackets run from 10% to 37%. The first 10% band ends at $12,400 for single filers.
- Estimated payments: no employer withholds, so you generally pay quarterly, around April 15, June 15, September 15 and January 15. To avoid an underpayment penalty you generally need to pay 90% of this year's tax or 100% of last year's (110% if your income was above $150,000).
- Not covered by our calculators: state tax, the 20% qualified business income deduction and credits, so real bills can be lower.
United Kingdom (2026/27)
- Income tax: a £12,570 Personal Allowance, then 20% up to £50,270, 40% up to £125,140 and 45% above. The allowance shrinks by £1 for every £2 of income over £100,000.
- National Insurance: Class 4 is 6% on profits between £12,570 and £50,270 and 2% above. Class 2 is no longer compulsory.
- Trading allowance: £1,000 of trading income can be tax-free instead of claiming expenses.
- Self Assessment: register by 5 October after the tax year in which you started, file online by 31 January and pay by that date. Larger bills usually include payments on account on 31 January and 31 July.
- Making Tax Digital: from April 2026 it applies to self-employed people with qualifying income over £50,000, with lower thresholds planned. Check GOV.UK for your position. Rates here are for England, Wales and Northern Ireland; Scotland differs.
How much to set aside
A common rule is to set aside 25–30% of net profit as it arrives, then adjust once you have run the numbers. Keep it in a separate account so it is not spent.
Deductible expenses
Equipment, software, a fair share of internet and home-office costs, and the platform fees themselves are typical examples. Keep receipts, since both tax authorities can ask for evidence.
Estimate your own bill with the creator tax and deduction estimator or the freelance take-home calculator, and talk to an accountant before filing.
Last reviewed October 2026. Figures are estimates for planning, not tax advice; see the disclaimer and methodology.