Where YouTube money comes from, tax-wise
AdSense / YouTube Partner Program revenue is paid by Google, which issues tax forms for US creators (Google AdSense tax information). Brand deals and sponsorships are separate: each sponsor that pays you above the federal reporting threshold sends its own 1099-NEC. Affiliate revenue, channel memberships, and Super Thanks all count too. None of it has taxes withheld; that job is yours.
The two taxes on every dollar of profit
Net profit (income minus business expenses) is hit twice: once by federal income tax at your bracket, and once by 15.3% self-employment tax on 92.35% of profit (Schedule SE). Deductions like half of your SE tax, the standard deduction, and the 20% QBI deduction soften the income-tax side, which is why effective rates land well below “bracket + 15.3”.
What to set aside, computed
| Net profit | Set aside (federal) | Effective rate | Per quarter |
|---|---|---|---|
| $20,000 | $3,025 | 15.1% | $756 |
| $40,000 | $7,427 | 18.6% | $1,857 |
| $75,000 | $15,495 | 20.7% | $3,874 |
| $120,000 | $28,461 | 23.7% | $7,115 |
| $150,000 | $37,607 | 25.1% | $9,402 |
Computed with Sero's tax engine (2026 IRS figures): single filer, standard deduction, QBI deduction included, self-employment income only, no state tax. Your situation will differ. Estimate only, not tax advice.
Common YouTube write-offs
- Camera bodies, lenses, audio, and lighting used for the channel
- Editing software, stock assets, thumbnails and design commissions
- Props and materials consumed making videos
- A business-use share of internet and a qualifying home studio space
Want your own number, with expenses and your filing status? Run the free creator tax calculator. It uses the same tested engine as the Sero iPhone app (coming for tax season 2027), and everything you type stays in your browser. YouTube income, brand deals, and tips all count as self-employment income in the estimate.