12 Hobbies That Make Money (and When the IRS Calls It a Business)

The hobbies that make money most reliably are the ones where someone already pays for the result: photography, crafts, baking, writing, teaching a skill, fixing things, caring for pets, and making videos. You don't need to turn a hobby into a full business to earn from it. Selling a few pieces a month or taking the odd paid job is enough to cover the cost of the hobby, and some people grow it from there. Before you start, know one rule: any money your hobby brings in is taxable, even if it's small.

Below are 12 hobbies that can earn you money, sorted by how the money actually reaches you, followed by the tax basics and the scams to avoid.

Hobbies that make money by selling what you make

1. Crafts (jewelry, candles, knitting, woodwork, sewing). Etsy is the obvious marketplace, and its costs are easy to plan for. Etsy's fee policy lists a $0.20 listing fee per item, a 6.5% transaction fee on the order total (including shipping), and for US sellers using Etsy Payments, a payment processing fee of 3% plus $0.25. On a $25 order with free shipping, that's roughly $2.80 in fees before materials and postage. Price your work with that in mind, or you'll end up paying to make things for strangers. Local craft fairs and Facebook Marketplace skip most of those fees but need more of your weekend.

2. Art and illustration. Originals, prints, commissions, and digital downloads. For context on professional pay, the Bureau of Labor Statistics puts the median for craft and fine artists at $55,290 a year in May 2025, but that survey leaves out the self-employed, who make up 58% of the field. In other words, the median describes salaried artists, not someone selling prints on weekends. Commissions (pet portraits, custom wedding art) usually pay better per hour than prints because the buyer is paying for something only you can make.

3. Baking and cooking. Custom cakes, cookies, and meal prep sell well locally. Rules on selling food made at home are set by each state and sometimes each county, so check your state's cottage food rules before you take your first order.

4. Thrifting and refurbishing. If you already love flea markets, flipping furniture or vintage clothes is a hobby with built-in profit. Buy low, clean or repair, and resell on Facebook Marketplace, eBay, or Poshmark. The skill is knowing what sells, which comes from looking at sold listings, not asking prices.

Hobbies you can sell as a service

5. Photography. Portraits, events, real estate, and product photos for small shops. The BLS reports a median of $21.47 an hour for photographers in May 2025 and says about 67% of photographers are self-employed, so this is a field where freelancing is normal. Start with mini sessions for friends, build a small portfolio, then charge.

6. Writing and editing. If you write for fun, people pay for blog posts, product descriptions, newsletters, and proofreading. Freelance marketplaces take a cut: Fiverr credits sellers 80% of each order and keeps 20%. Our freelance writing side hustle guide covers landing the first client.

7. Fitness and sports coaching. Personal training, group classes, or coaching a sport you play. The BLS gives a median of $22.67 an hour for fitness trainers and instructors in May 2025 and notes that many work part-time or variable schedules, which suits a side income. Gyms usually want a certification before they hire you.

8. Music. Teaching lessons is the steadiest money for most hobby musicians. Playing weddings, restaurants, or local events pays per gig but is less predictable.

9. Pet care. If you love animals, dog walking and pet sitting are easy to start through an app. Rover's help center says US sitters pay a 20% service fee per booking, so you keep 80% of what you charge (some pilot programs differ).

10. Fixing things. Bike repair, small appliance repair, computer setup, or furniture assembly. Neighbors and local groups are the best customers, and Taskrabbit is an option if you want an app to find jobs.

Hobbies that earn from an audience

11. Teaching your hobby online. Write a how-to blog, sell knitting patterns or printable templates, or run a paid workshop. Patterns and printables are the closest thing to "make once, sell many times," though it takes a while for a new shop to get found. If you want traffic from search, Pinterest works well for craft and recipe content, and our guide on how to make money on Pinterest explains the options.

If you'd rather make videos than read about it, VidPuff turns a title into a faceless video. No waitlist, cancel anytime.

12. A YouTube channel about your hobby. Woodworking, gardening, cooking, history, and model building all have large audiences. It's slow: to earn ad revenue you need 1,000 subscribers plus either 4,000 public watch hours in the last 12 months or 10 million Shorts views in 90 days, per YouTube Help. Hands-on hobbies need you filming your own work. For topics you know well but can't easily film, like history or the science behind a hobby, a narrated faceless channel is an option, and tools like VidPuff can draft the script, narration, and visuals from a title while you review each stage. See how to make money on YouTube for every revenue stream besides ads.

Hobby income and taxes: hobby or business?

This is the part most lists skip. The IRS treats money from a hobby differently from money from a business, and the label changes what you can deduct.

If it's a hobby, you still report the income. The IRS Taxpayer Advocate Service says hobby income goes on Schedule 1 of Form 1040, line 8j. But you can't deduct the costs: IRS Publication 529 says expenses for an activity not run for profit are miscellaneous itemized deductions that "can no longer be deducted." So if you sell $800 of candles and spent $600 on wax and jars, you can still owe tax on the full $800.

If it's a business, you report income and expenses on Schedule C and pay tax on the profit. You also owe self-employment tax (15.3%) once net earnings reach $400 in a year, according to the IRS self-employment tax page.

How does the IRS decide? Its guide to telling a hobby from a business lists factors such as whether you run the activity in a businesslike way with accurate records, whether you put in time and effort to make a profit, whether you change methods to become profitable, and whether it has made a profit in some years. No single factor decides it. The practical takeaway: if you want your hobby income treated as a business, act like one. Keep receipts, track sales in a spreadsheet, and use a separate bank account. For your own situation, ask a tax professional.

Scams that target hobbyists

Crafters and other hobbyists get pitched "work from home" offers that sound like a way to get paid for what they enjoy. The FTC's guide to job scams lists the warning signs:

• You have to pay for a starter kit, training, or a certification before you can earn.
• Someone sends you a check, asks you to deposit it, and wants part of it sent back.
• The "job" is receiving packages and reshipping them, which the FTC says is never a real job.
• The promised pay is high for very little time or effort.

A real buyer or client pays you. If money has to go from you to them first, walk away.

How to start without overspending

1. Pick the hobby you already do most often, not the one with the biggest earnings claim online.
2. Sell or offer one thing first: one product, one service, one price.
3. Track every cost from day one, including platform fees and materials.
4. After three months, check whether you made a profit. If not, raise prices, cut costs, or keep it as a hobby you enjoy.

If you're short on time, our list of weekend side hustles covers options that fit into Saturdays, and our side hustles for introverts post covers quieter ones.

FAQ

What hobbies make the most money?

Hobbies that become a skilled service usually pay best per hour: photography, coaching, teaching lessons, and writing. Selling handmade goods can pay well too, but materials and fees eat into each sale, so price carefully.

What are some hobbies that can earn you money from home?

Crafts sold online, illustration and digital art, writing and editing, selling patterns or printables, teaching lessons over video, and running a YouTube channel can all be done from home.

Do I have to pay taxes on hobby income?

Yes. Hobby income is taxable and is reported on Schedule 1 (Form 1040), line 8j, according to the IRS Taxpayer Advocate Service. Hobby expenses can't be deducted, so if you earn regularly, it may make sense to run it as a business. A tax professional can help you decide.

How do I know if my hobby is a business?

The IRS looks at things like whether you keep good records, work to make a profit, adjust your methods to improve profit, and have made a profit before. No single factor decides it.