How YouTubers, authors and self-publishers can legally pay 0% US tax

What YouTube, KDP, Google Play Books, Steam, the app stores and other platforms withhold from creators and authors outside the US, what it costs a year and how refunds work, in 2026.

YouTubers and authors who sell books through Amazon KDP, Google Play Books or Barnes & Noble Press have US tax withheld from their payouts when they live outside the United States. Streamers and game and app developers face the same deduction on Twitch, Steam and the app stores. The rule behind the deduction is set out in the US guide for withholding agents: "In most cases, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person’s country of residence and the United States. The tax is generally withheld (chapter 3 withholding) from the payment made to the foreign person."

Where the 30% comes from

The US tax authority's page on the source of income starts from one principle: "A nonresident alien (NRA) generally is subject to U.S. income tax only on income from U.S. sources." At the full rate, 30% of $40,000 in US royalties is $12,000. The US guide for nonresidents reads: "The 30% (or lower treaty) rate applies to the gross amount of U.S. source fixed, determinable, annual, or periodical (FDAP) gains, profits, or income."

YouTube: the US share of a channel

With valid tax information on file, Google withholds US tax only from YouTube earnings from viewers in the United States. The rule covers ad revenue, YouTube Premium, Super Chat, Super Stickers, Super Thanks and channel memberships. The US guide for nonresidents reads: "U.S. source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property."

Without tax information, Google withholds 24% of an individual's total earnings worldwide and 30% of the US earnings of a business account outside the US. With tax information on file, Google applies the treaty rate, from 0% to 30%. The instructions for Form W-8BEN read: "Provide Form W-8BEN to the withholding agent or payer before income is paid or credited to you. Failure to provide a Form W-8BEN when requested may lead to withholding at the foreign-person withholding rate of 30% or the backup withholding rate under section 3406."

A channel that earns $5,000 a month, with $2,000 from US viewers, loses $14,400 a year without a form. At 30% the loss is $7,200, at a treaty rate of 15% it is $3,600, and at 0% it is zero. The instructions for Form W-8BEN add: "If applicable, the withholding agent may rely on the Form W-8BEN to apply a reduced rate of, or exemption from, withholding at source."

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Books: KDP, Google Play Books, Barnes & Noble Press, Apple Books

KDP withholds 30% from royalties on ebooks sold on Amazon.com, on print books sold on Amazon.com and three other Amazon stores, and on KDP Select Global Fund payments for Kindle Unlimited reads. The US guide for withholding agents describes copyright royalties: "This category refers to the royalties paid for the use of copyrights on books, periodicals, articles, etc., except motion picture and television copyrights."

KDP grants a reduced rate to authors with permanent residence in a country that has a tax treaty with the US, and authors outside the US cannot publish on KDP without a tax profile. ACX accepts audiobook rights holders from a short list of countries. The instructions for Form W-8BEN read: "You must give Form W-8BEN to the withholding agent or payer if you are a nonresident alien who is the beneficial owner of an amount subject to withholding, or if you are an account holder of an FFI documenting yourself as a nonresident alien."

Google Play Books files publisher earnings under other copyright royalties and, with valid tax information, withholds only on sales to US readers. In Google's example, a publisher earns $1,000 in a month, $100 of it from US readers, and loses $240 without tax information, $30 with a form but no treaty and $15 at a treaty rate of 15%. An example in the US regulation on digital content describes an ebook store that copies and sells an author's book and concludes: "Taking into account all of the facts and circumstances, there has been a license of books to Corp A."

Barnes & Noble Press deducts up to 30% from the gross royalties of publishers outside the US, and a Form W-8BEN or W-8BEN-E reduces the deduction or removes it on royalties from sales outside the US. Draft2Digital withholds 30% from every publisher outside the US by default and pays on treaty terms once one of these forms is on file. The page on royalties paid to nonresidents gives the rule for payers: "Withhold at 30% or lesser tax treaty rate, if applicable".

Apple Books asks authors outside the US for Form W-8BEN, W-8BEN-E or W-8ECI, pays nothing until the banking and tax information is complete and names no US rate in its help pages.

A US publisher pays the advance and the royalties under a book contract. A 1974 US ruling treats payments to an author abroad under a contract for the rights to the author's works as royalties from US sources, and the US guide for withholding agents reads: "In general, you must withhold tax under chapter 3 on the payment of royalties from sources in the United States."

Paper books sold as goods through a seller account are a separate case, and the US guide for withholding agents reads: "You generally do not need to withhold under chapter 3 or 4 on any gain from the sale of real or personal property because it is not FDAP income."

Games: Steam, Epic, itch.io, consoles, Roblox

Valve treats a developer's revenue share as a royalty and withholds 0% to 30% on US sales of games and DLC. The US guide for withholding agents lists "Other royalties (for example, copyright, software, broadcasting, endorsement payments) (income code 12)."

In Valve's example, a developer with a $50,000 revenue share and $20,000 in US sales has $6,000 withheld at 30%. The same guide reads: "As a withholding agent, you are personally liable for any tax required to be withheld."

Microsoft Partner Center withholds tax only on sales into the United States. The US regulation on digital content reads: "When a copyrighted article is sold and transferred through an electronic medium, the sale is deemed to have occurred at the location of the billing address of the purchaser for purposes of § 1.861-7(c)."

Roblox withholds 0% to 30% on Developer Exchange royalties from sales to players in the US. Without tax information, Roblox may withhold 24% of the full payout. The US guide for withholding agents reads: "You must withhold 24% (backup withholding rate) from certain reportable payments made to a U.S. person that is subject to Form 1099 reporting".

Epic Games decides through its tax interview whether to withhold US tax. In payouts mode, itch.io withholds 30% from a creator without a tax ID even if a treaty allows a lower rate. The instructions for Form W-8BEN read: "If you do not have an SSN and are not eligible to get one, you can get an individual taxpayer identification number (ITIN)."

Apps: App Store and Google Play

Google lists Play Pass among the royalties subject to US withholding and withholds only on revenue from users in the United States. Ordinary app sales are not on Google's list. The US regulation on digital content reads: "A copyrighted article includes a copy of digital content from which the work can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. The copy of the digital content may be fixed in any medium."

Murblz experts have written guides to the Google Play developer account and to Apple Developer Program membership. Apple's developer agreement appoints Apple as the developer's agent for App Store sales, and an example in the US regulation on digital content sets out the same model: "Under general tax principles, Corp A and an application developer establish an agency relationship whereby Corp A acts as the agent to offer the application for sale to customers on behalf of the application developer."

Music, stock, courses, templates, print on demand

CD Baby withholds 30% by default from US streaming and video royalties and withholds nothing on downloads or physical sales. DistroKid says up to 30% of earnings may be withheld from artists whose tax residence is outside the US, and the US guide for withholding agents treats a stream of small payments like one large payment: "Income can be FDAP income whether it is paid in a series of repeated payments or in a single lump sum. For example, $5,000 in royalty income would be FDAP income whether paid in 10 payments of $500 each or in one payment of $5,000."

Shutterstock applies a default 30% to income from US customers, and Envato has done the same since January 1, 2026. Skillshare withholds 0% to 30% on minutes watched from the US and on referral revenue, and the same guide caps the deduction: "In no case, however, should you withhold more than 30% of the total amount paid."

Patreon withholds no US income tax but requires a Form W-8BEN or W-8BEN-E from creators who are not US citizens before payout. The US guide for withholding agents states what a valid form changes: "Foreign persons who provide a valid Form W-8 (or applicable documentary evidence when permitted in lieu of a Form W-8) are exempt from backup withholding and Form 1099 reporting."

Freelancers

Upwork withholds no US tax from freelancers with a valid Form W-8BEN and up to 30% of future earnings from freelancers without one. Upwork's form includes a statement that the work is done outside the United States. The US guide for withholding agents reads: "The part attributable to services performed in the United States is U.S. source income, and the part attributable to services performed outside the United States is foreign source income."

Where the money is lost

KDP says an expired form returns an author to the 30% rate. Draft2Digital's terms take away the royalties of an author who does not send the requested tax information within 180 days. The instructions for Form W-8BEN set the term of the form: "Generally, a Form W-8BEN will remain in effect for purposes of establishing foreign status for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year".

A move to another country changes the claim, according to the same instructions: "However, if you use Form W-8BEN to claim treaty benefits, a move to the United States or outside the country where you have been claiming treaty benefits is a change in circumstances." They give 30 days for a new form: "If any information on Form W-8BEN becomes incorrect, you must submit a new form within 30 days".

YouTube Analytics does not show the withheld tax. Google lists it in the AdSense payments report, usually in the month after the payment. The US guide for nonresidents reads: "You can claim as a payment any tax withheld at the source on investment and other FDAP income paid to you. Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income."

Valve, Microsoft and Upwork do not refund tax withheld before a correct form was on file. Google may refund the difference on YouTube when an updated form with a treaty claim arrives by December 10, and on Play Books when a refund claim with an affidavit of unchanged circumstances arrives by December 31 of the year of withholding. The US guide for withholding agents sets the window for such corrections: "If you discover that you overwithheld tax under chapter 3 or 4 by March 15 of the following calendar year, you may use the undeposited amount of tax to make any necessary adjustments between you and the recipient of the income."

Getting back what was withheld

Individuals reclaim the tax on Form 1040-NR, and its instructions require the platform's statement: "If you are claiming a refund of U.S. tax withheld at source under chapter 3 or tax withheld under chapter 4, you must attach a copy of the Form 1042-S that shows the income and the amount of U.S. tax withheld."

The deadline for creators without US wages: "If you didn’t receive wages as an employee subject to U.S. income tax withholding, file Form 1040-NR by the 15th day of the 6th month after your tax year ends. A return for the 2025 calendar year is due by June 15, 2026."

The same instructions on timing: "If you request a refund of tax withheld on a Form 1042-S, Form 8805, or Form 8288-A, we may need additional time to process the refund. Allow up to 6 months for these refunds to be issued."

Form 1040-NR requires a taxpayer number, and the instructions for Form W-7 list the refund among the uses of an ITIN: "Examples of using an ITIN for federal tax purposes include filing an individual federal tax return to claim a refund or report income." They allow seven weeks for a decision and add: "(9 to 11 weeks if you submit the application during peak processing periods (January 15 through April 30) or if you’re filing from overseas)".

For a return already filed, the US guide for nonresidents sets the window for a further claim: "Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later."

What decides the rate

Tax residence comes first, and the instructions for Form W-8BEN define it through the treaty: "For treaty purposes, a person is a resident of a treaty country if the person is a resident of that country under the terms of the treaty." Murblz has a tax residency calculator and a guide on how to become tax resident abroad.

Individuals sign Form W-8BEN and other recipients sign Form W-8BEN-E. The instructions limit who counts as the owner of the income: "A person is not a beneficial owner of income, however, to the extent that person is receiving the income as a nominee, agent, or custodian, or to the extent the person is a conduit whose participation in a transaction is disregarded."

Google files YouTube Partner Program income under copyright royalties and income from AdSense on websites under services. The US guide for withholding agents explains why the label matters: "Most treaties have more than one withholding rate on royalties, which varies by the classification of the payment in that treaty."

0% is possible, but not for everyone

The US tax authority's page on royalties paid to nonresidents allows for a full exemption: "The withholding agent will report the payment on Forms 1042 and 1042-S, even if the entire amount of income is exempt under a tax treaty."

Not every creator qualifies for 0%. For a recipient other than an individual, the instructions for Form W-8BEN-E add a condition: "Meet the limitation on benefits provision contained in the treaty, if any."

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