Does YouTube automatically deduct taxes from ad revenue?

It's critical for creators to keep track of their earnings and understand the difference between the income reported by YouTube and what is actually deposited into their AdSense account. Currency conversion can also play a role in discrepancies, particularly for creators outside the US.

While YouTube handles the withholding of taxes for US earnings, it does not exempt creators from their own country’s tax obligations. For instance, a UK creator would still need to report their total earnings and pay any taxes due in the UK, even though YouTube pays the tax on US earnings to the IRS.

Creators must fill out appropriate tax forms when they register for monetization. Depending on the country, some creators may benefit from tax treaties that allow them to avoid US withholding tax on their earnings. For example, creators from countries like the UK or Canada may end up with a 0% tax rate if they properly claim treaty benefits.

Although some creators have reported that YouTube deducts nothing from their earnings, this can depend on whether they have claimed their tax treaty benefits correctly. If not, they may find that their earnings are lower than expected due to unclaimed deductions.

YouTube takes a percentage of ad revenue, which is 45% for creators, but they do not automatically deduct income taxes for creators. Creators are responsible for declaring their earnings and paying taxes based on their individual tax jurisdiction. However, if a creator is not in the USA and earns little to no money, they might not face immediate tax obligations.