Person using TikTok on smartphone discussing Australian tax rules.

How Much Tax Do TikTok Creators Pay in Australia? (2026 Rates)

How Much Tax Do TikTok Creators Pay in Australia?

Worked examples at $30k, $60k, $100k and $200k using current marginal rates. No jargon, just numbers.

7 min read Updated April 2026

A TikTok creator earning $80,000 in profit will pay roughly $16,467 in income tax plus $1,600 in Medicare levy for the 2025-26 financial year. But the actual number depends on your total taxable income, your deductions, whether TikTok is your only income source, and whether you are making PAYG instalments throughout the year.

This guide walks through the exact calculations so you know what to expect. If you want help managing your TikTok tax obligations, our TikTok tax accountants work with creators Australia-wide.

Australian Tax Rates for 2025-26

TikTok income is taxed at the same marginal rates as any other income. There is no special “creator tax.” Here are the current brackets:

Taxable Income Tax Rate
$0 – $18,2000% (tax-free threshold)
$18,201 – $45,00016% on each dollar over $18,200
$45,001 – $135,000$4,288 + 30% over $45,000
$135,001 – $190,000$31,288 + 37% over $135,000
$190,001+$51,638 + 45% over $190,000

On top of income tax, you pay the Medicare levy of 2% on your total taxable income (with some low-income exemptions).

Worked Examples: TikTok-Only Income

These examples assume TikTok is your sole income source and you have already subtracted your deductions to arrive at taxable income.

$30,000 taxable income Part-time

  • First $18,200: $0 tax
  • $18,201 to $30,000 = $11,800 at 16% = $1,888
  • Income tax: $1,888
  • Medicare levy: $30,000 x 2% = $600
Total Tax
$2,488
8.3% effective

$60,000 taxable income Growing

  • First $18,200: $0
  • $18,201 to $45,000 = $26,800 at 16% = $4,288
  • $45,001 to $60,000 = $15,000 at 30% = $4,500
  • Income tax: $8,788
  • Medicare levy: $60,000 x 2% = $1,200
Total Tax
$9,988
16.6% effective

$100,000 taxable income Full-time

  • First $18,200: $0
  • $18,201 to $45,000 = $4,288
  • $45,001 to $100,000 = $55,000 at 30% = $16,500
  • Income tax: $20,788
  • Medicare levy: $100,000 x 2% = $2,000
Total Tax
$22,788
22.8% effective

$200,000 taxable income High earner

  • First $18,200: $0
  • $18,201 to $45,000 = $4,288
  • $45,001 to $135,000 = $27,000
  • $135,001 to $190,000 = $20,350
  • $190,001 to $200,000 = $10,000 at 45% = $4,500
  • Income tax: $56,138
  • Medicare levy: $200,000 x 2% = $4,000
Total Tax
$60,138
30.1% effective

What If TikTok Is Your Side Hustle?

If you have a full-time job and earn TikTok income on the side, your TikTok earnings sit on top of your employment income. That means your TikTok dollars are taxed at whatever marginal rate your combined income falls into.

Scenario

You earn $70,000 from your day job. Your employer withholds tax on that income throughout the year. You also earn $20,000 in net TikTok profit.

Your total taxable income is $90,000. The $20,000 from TikTok is effectively taxed at 30% (the marginal rate for income between $45,001 and $135,000), because your employment income has already used up the lower brackets.

$6,400
additional tax on your TikTok income ($6,000 income tax + $400 Medicare)

This is the number that catches people off guard. Your employer has already withheld tax on your salary, but nobody is withholding tax on your TikTok income. If you do not set money aside throughout the year, you will get a lump-sum bill at tax time.

PAYG Instalments: Paying Tax Throughout the Year

If your TikTok income is significant, the ATO will likely put you on PAYG instalments after your first tax return. This means you pay estimated tax in quarterly amounts rather than one annual lump sum.

PAYG instalments are calculated based on your most recent tax return. The ATO will send you an instalment notice each quarter with the amount due.

This is actually a good thing. Paying in smaller amounts throughout the year is much easier to manage than a $10,000 or $20,000 bill in October. If your income changes significantly during the year, you can vary your instalments (but be careful; if you vary too low, the ATO may charge interest on the shortfall).

Our TikTok tax accountants can set up your PAYG instalments and adjust them as your income grows.

GST on Top of Income Tax

Income tax and GST are separate obligations. If your total business turnover exceeds $75,000, you must register for GST. Once registered, you:

  • Charge 10% GST on taxable supplies (such as sponsored content for Australian brands)
  • Lodge BAS quarterly
  • Can claim GST credits on eligible business expenses

Not all TikTok income attracts GST. Payments from TikTok itself (Creator Rewards, LIVE gift withdrawals) come from an overseas entity and are generally GST-free. But Australian brand deals, local merchandise sales and domestic affiliate commissions are typically GST-applicable.

The GST you collect is not your money. It belongs to the ATO and must be remitted through your BAS. Do not spend it.

How Deductions Reduce Your Tax Bill

The examples above use taxable income (after deductions). The gap between your gross TikTok earnings and your taxable income is your deductions, and they make a real difference.

Example

You earn $80,000 gross from TikTok. You have $15,000 in legitimate business expenses (equipment, software, internet, home office, travel, accounting fees). Your taxable income is $65,000, not $80,000.

$4,500
saved in tax from $15,000 in deductions at the 30% marginal rate

Common TikTok deductions include camera and audio equipment, editing software, internet and phone bills (business portion), home office costs, props and costumes used exclusively for content, travel to filming locations, music licensing, cloud storage, advertising spend, and accounting fees. For a full list, see our TikTok tax accountants page.

The Rule of Thumb

25-30%
Set this aside from every TikTok payment into a separate bank account.
Covers income tax + Medicare for creators in the $45k-$135k range.

If your total income (including any day job) puts you above $135,000, increase that to 35-40%.

Once you have lodged your first tax return and know your actual tax rate, you can fine-tune this number. Or better yet, let us handle it.

Know Exactly Where You Stand

Book a free call with our team. We will review your income, identify your deductions, and give you a clear picture of what you owe, with no surprises at tax time.

Book a Free Call

Frequently Asked Questions

Do TikTok creators need an ABN in Australia?

Yes. If you are earning money through TikTok — from the Creator Fund, brand deals, gifts, or live streams — you are carrying on an enterprise and need an ABN. Register free at abr.business.gov.au.

Is the TikTok Creator Fund taxable?

Yes. Creator Fund payments are assessable income taxed at your marginal rate. TikTok does not withhold Australian tax — you are responsible for reporting and paying it yourself.

How do I report TikTok income on my tax return?

Report it as business income at Item 15 of your individual tax return. Declare gross income, then deduct allowable expenses. The net profit is your taxable TikTok income.

Does TikTok withhold Australian tax?

No. TikTok pays the gross amount. Once your income exceeds $4,000 in a financial year, the ATO will likely enrol you in PAYG instalments — quarterly prepayments toward your annual tax bill.

When do I need to register for GST?

When your total business income (TikTok plus any other sources) exceeds $75,000 in any 12-month period. Once registered, you add 10% GST to applicable supplies and lodge BAS.

Can I claim my phone and camera as a deduction?

Yes — the business-use percentage of your phone, internet, camera, lighting, and editing equipment is deductible. Items under $20,000 may qualify for the instant asset write-off in the year of purchase.

Are TikTok LIVE gifts taxable?

Yes. Virtual gifts converted to Diamonds and then to cash are assessable income. They must be declared in your tax return the same as any other business receipt.

What records do I need to keep?

Keep records for at least five years: TikTok payment statements, brand deal invoices, all expense receipts, business-use logs for mixed-use items, and BAS records if GST-registered.

Need an expert on your team?

Experience expert accounting solutions that drive growth and success for your business. Contact us today for a personalised consultation.

Picture of Michael Wilczynski

Michael Wilczynski

Managing Director, National Accounts - Chartered Accountant 340123 | Registered Tax Agent 17532009 | Certified Practising Valuer
Michael founded National Accounts to give business owners the kind of strategic, hands-on tax advice most firms reserve for their biggest clients. He specialises in tax structuring, SMSF strategy, and compliance for SMEs, content creators and high-net-worth families. Michael holds memberships with Chartered Accountants Australia and New Zealand (CA ANZ) and the Tax Practitioners Board. He has presented at the SMSF Association National Conference and advises clients nationally from the firm's Adelaide office.

You might also like…