As a wedding photographer turned tax educator, I’ve learned just how confusing it can be to keep up with both federal vs. state taxes for photographers. When I first started my business, I assumed taxes were all handled the same way no matter where you lived, but that couldn’t be further from the truth. In fact, you’re dealing with two separate tax systems at the same time, and mixing them up can lead to unexpected bills, penalties, or even an audit. Let’s break this down so you can feel confident heading into tax season.
Federal Taxes: What Every Photographer Must Pay
No matter where you live in the U.S., federal taxes apply to all photographers. At the federal level, you’ll pay two main types of tax:
- Federal income tax on your photography profits (that’s your revenue minus business expenses).
- Self-employment tax, which covers Social Security and Medicare. Currently, this tax is 15.3% of your net profit.
When you think about the federal side, just remember: IRS, income tax, and self-employment tax. Those apply across the board.
State Taxes: Why They Get Complicated
Here’s where things get tricky: state taxes. Every state has its own rules, and that means your experience as a photographer in Pennsylvania will look very different from a photographer in Texas.
- Some states charge state income tax on top of federal income tax.
- A few states, like Florida and Texas, don’t charge state income tax at all.
- Sales tax is where photographers often get caught off guard. Many states require you to charge sales tax on products like albums, prints, or USBs. In some places, even your services might be taxable.
And to make things even more confusing, counties or cities can sometimes layer on additional requirements. The key difference is this: federal taxes are the same everywhere, while state taxes completely depend on where you live and work.
Practical Tips for Navigating Both
Now that you understand the difference between federal and state, here are three steps you can take right away:
- Check your state’s Department of Revenue website to confirm whether you need to register for sales tax and which services or products are taxable.
- Set aside money for both federal and state taxes. A good rule of thumb is 25–30% of your profit for federal taxes, then add your state’s percentage on top.
- Make quarterly estimated payments. Paying both federal and state taxes throughout the year helps you avoid one giant, overwhelming bill in April.
Making Taxes Suck Less
At the end of the day, understanding federal vs. state taxes for photographers can save you from stressful surprises and help you feel more in control of your business finances. Federal taxes are non-negotiable, but state taxes vary depending on where you’re located.
If this still feels overwhelming, I created a free masterclass just for photographers: Maximizing Your Tax Deductions as a Photographer. In it, I cover the five most common deductions photographers miss so you can stop overpaying and keep more of what you earn. You can sign up through the link below.
Remember, you’ve got this, and learning how to navigate both federal and state taxes is one of the best ways to build a sustainable photography business.
XOXO – Heather
And don’t forget to grab my Tax Preparation Checklist. It includes everything you need to gather before you file plus a tax calendar to keep you ahead of every major deadline.
Let’s make this the year you take control of your business finances!
Let’s Prep for Tax Season – Together
Keep more of what you make inside of your business with these 5 key deductions for photographers. I’m sharing all inside of my free class — Maximizing Your Tax Deductions as a Photographer!
Make tracking your numbers easy with my Tax Prep Spreadsheet and ensure that tax season is a breeze.
Transform your passion into a thriving business and unlock success for your photography business with my free guide to setting goals for the first year of your photography business.
Mastering your business taxes starts with understanding the different tax categories. Grab my free tax category guide to take the first step towards stress-free taxes today.
Want taxes to suck less? Learn how to correctly prepare your taxes for your accountant with the Photographer Tax Course – and say hello to a confident and calm tax season!
Don’t know what you don’t know? You’re just 90 minutes from a custom tax prep system with my 1:1 Tax Prep Mentoring sessions!
More Helpful Tax Blogs for Photographers:
Tax Planning Tips for Growing Photography Businesses
Can You Deduct Personal Expenses as a Photographer?
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