Platforms / Kajabi

Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses): taxes and retirement for 2026

How Kajabi pays its Heroes (Kajabi's name for its customers who run course, coaching and membership businesses), what the IRS sees, what you can deduct and how to save for retirement on your own. Gigaverse is not affiliated with Kajabi.

How Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses) are paid and taxed

Classification: Heroes are business owners who pay for Kajabi's software. Kajabi's terms say it is not a marketplace and the Hero is the official seller on every transaction, responsible for collecting and paying taxes.
Tax forms: Kajabi issues Form 1099-K for Kajabi Payments activity to US Owners or Sub-owners whose volume exceeds $20,000 and 200 transactions. It is available by January 31 under Settings → Documents. If you take payments through your own Stripe or PayPal account instead, those providers issue the form.
Platform fees: Kajabi takes no revenue share. Plans cost $179, $249 or $499 per month ($143, $199 or $399 per month billed annually). US Kajabi Payments card rates are 2.9% + $0.30 on Basic, 2.8% + $0.30 on Growth and 2.7% + $0.30 on Pro, plus 1.5% for international cards and 0.7% on subscriptions and payment plans. ACH costs 0.8% (capped at $5), and Kajabi Sales Tax costs $0.15 per transaction. Using a third-party processor where Kajabi Payments is offered adds an extra processing fee.
Payouts: Kajabi Payments deposits to your bank on a daily, weekly or monthly schedule. New accounts start on monthly payouts with a 7-day (T+7) transaction delay, and Instant Payouts are available for 1.5% ($0.50 minimum).

What Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses) can deduct

Kajabi plan fees ($179–$499 per month, or less when billed annually)
Kajabi Payments processing fees, $15 dispute fees and Instant Payout fees
Kajabi Sales Tax fees ($0.15 per transaction) and other sales-tax compliance costs
Affiliate commissions and paid ads that drive course, coaching or membership sales
Course production gear and software (camera, microphone, lighting, editing apps)
Home office or studio space used regularly and exclusively for the business

Watch out for

Because you are the seller of record, you have to register, collect, file and remit sales tax yourself. Kajabi Sales Tax calculates and collects the tax but does not file or remit it.
Kajabi says the 1099-K total includes customer payments and any sales tax collected. It won't match your bank payouts or Kajabi Analytics revenue, so reconcile before you file.
Kajabi's 1099-K covers only Kajabi Payments. Sales through your own Stripe or PayPal account are reported by those providers.
The 1099-K uses each transaction's settlement date in UTC, so sales at the very end of the year can land in the next tax year.

Federal rules for 2026

Platform payouts are business income

AdSense, subscriptions, tips from fans, sponsorships and affiliate commissions are self-employment income, so self-employment tax applies on top of income tax.

Free products count

Products or services you receive in exchange for content are income at their fair market value, the same as cash.

Gear and software

Cameras, lighting, microphones, editing software and a business share of your phone and internet are deductible. Larger equipment can often be written off in the year you buy it.

Quarterly estimated taxes

No one withholds tax from self-employment income, so you generally pay estimates four times a year if you expect to owe $1,000 or more. For 2026 income the federal dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% if your AGI was over $150,000) in four equal installments avoids the underpayment penalty.

A worked example

A creator with $90,000 of net profit in 2026
Self-employment tax	$12,717
Self-employment tax per quarter	$3,179
Solo 401(k) maximum	$41,228
SEP IRA maximum	$16,728

Federal figures only, before income tax and state or local taxes. Computed from 2026 IRS limits (Notice 2025-67, Rev. Proc. 2025-32) and the SSA wage base.

Free tools

Quarterly tax calculator Solo 401(k) calculator When an S-corp makes sense

Questions

Does Kajabi send a 1099?

Kajabi issues Form 1099-K for Kajabi Payments activity to US Owners or Sub-owners whose volume exceeds $20,000 and 200 transactions. It is available by January 31 under Settings → Documents. If you take payments through your own Stripe or PayPal account instead, those providers issue the form.

Are Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses) employees or independent contractors?

Heroes are business owners who pay for Kajabi's software. Kajabi's terms say it is not a marketplace and the Hero is the official seller on every transaction, responsible for collecting and paying taxes.

What can Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses) deduct?

Common deductions include kajabi plan fees ($179–$499 per month, or less when billed annually); kajabi payments processing fees, $15 dispute fees and instant payout fees; kajabi sales tax fees ($0.15 per transaction) and other sales-tax compliance costs; affiliate commissions and paid ads that drive course, coaching or membership sales; course production gear and software (camera, microphone, lighting, editing apps). Keep records for each.

How much does Kajabi take?

Kajabi takes no revenue share. Plans cost $179, $249 or $499 per month ($143, $199 or $399 per month billed annually). US Kajabi Payments card rates are 2.9% + $0.30 on Basic, 2.8% + $0.30 on Growth and 2.7% + $0.30 on Pro, plus 1.5% for international cards and 0.7% on subscriptions and payment plans. ACH costs 0.8% (capped at $5), and Kajabi Sales Tax costs $0.15 per transaction. Using a third-party processor where Kajabi Payments is offered adds an extra processing fee. Platform fees are generally a deductible business expense.

Do Kajabi Heroes (Kajabi's name for its customers who run course, coaching and membership businesses) have to pay quarterly taxes?

If you earn as an independent contractor and expect to owe $1,000 or more for the year, you generally pay federal estimated taxes four times a year. For 2026 income the dates are April 15, June 15 and September 15, 2026, and January 15, 2027.

Track it in one place

Connect the bank account your Kajabi payouts land in and Gigaverse categorizes income and expenses, estimates your quarterly taxes and answers money questions with your own numbers. Retirement accounts are coming soon.

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Sources

Platform details from Kajabi's own published pages, researched and independently re-checked (last verified October 2026); fees and policies change. Kajabi is a trademark of its owner. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.