Not sure if this question belongs under this forum topic, but here goes... Someone told me the taxes you must pay on book royalties is %40. Is this true?
It'll depend on your jurisdiction, probably. Where I am (Canada) I just pay at whatever my regular rate of taxation would be.
Yeah as Bay said it depends where you are. In the Uk you pay nothing up to 10k 20% up to 40k, then 40% up to 50k then 50% after that (note that's on your entire income so if you have a day job paying 40k , you'd be paying 40% on the extra income. Also note that in most places you pay tax on your profit /income - which is royalties minus your costs not on gross royalties. One other point is that if you aren't an american citizen you'll be charged 30% withholding tax by the IRS on royalties made in the US (amazon and some others ) unless you submit form W8-BEN (assuming your country has a tax treaty with the US)
I live in the U.S. and there's nothing special about how royalties are taxed; it's just additional income that's taxed according to what bracket myself and Mr. Kelley fall into.
Remember that dimwitlast year who reckoned he didn't have to pay tax on 22k sales because it was residual income or something (For the OPs benefit that isn't remotely the case)
