Roblox DevEx Becomes Royalty Income on November 1, 2026: The W-9 and W-8 Deadline, the 24% Backup Withholding, and How t

Wed Oct 21, 2026 12:58 am

Quick Summary

Starting November 1, 2026, Roblox classifies DevEx payouts as royalty income under the updated Terms of Use, and moves your W-9 or W-8 tax forms from Tipalti to the Taxes page in Creator Hub. [1]
The October 31, 2026 deadline decides the withholding rate on your first royalty payout. A valid form on file means no U.S. withholding for U.S. creators; no valid form can mean 24% backup withholding. [1]
Non-U.S. creators who file a valid W-8BEN or W-8BEN-E by the deadline can land in the 0% to 30% treaty range on earnings tied to U.S. players, instead of losing a quarter of every payout. [1]
Tipalti still pays you. You do not need a new Tipalti account, and Roblox calculates the withholding before each payout. [1]
The base DevEx rate did not move. It is still 0.0038 per Earned Robux, or $114 for 30,000, with the separate U.S. 18+ rate at 0.0054. [2]

What Actually Changed on November 1

Roblox rewrote the Terms of Use and the Privacy Policy, and the payout section is where the real change sits. Two things moved at once.

First, the label. DevEx payments used to be treated as payments for services, which is why U.S. creators received a 1099-NEC. From November 1, 2026 they are royalties, and U.S. creators will now receive a 1099-MISC instead. [1]

Second, the paperwork moved. Tax documentation lives on the Taxes page in Creator Hub now. Tipalti still processes the money and still needs your payment details, but it no longer owns your tax forms. Roblox validates your TIN against the IRS directly. [1]

The Terms of Use update also clarified who you are buying and selling from. Roblox acts as the principal distributor and merchant of record for purchases made through Roblox, so you and the player are not transacting directly with each other for those purchases. [3]

Players in the European Economic Area got a consumer right of withdrawal added. If you are a minor, a parent or guardian has to accept the new terms before you can keep using the platform. [3]

The Key Dates, and What Each One Costs You

The schedule is unforgiving, because the October 31 cutoff decides your rate on payouts that start November 1.
[th]Date[/th][th]What happens[/th]

July 15, 2026	Taxes page opens in Creator Hub. You could file early and skip the rush. Payouts kept running through Tipalti unchanged.
October 15, 2026	Roblox's recommended deadline to request a DevEx payout before the switch.
October 31, 2026	Final day under the current Terms of Use. Tax info submitted by this date sets your U.S. withholding rate on the first royalty payouts.
November 1, 2026	Terms of Use update takes effect. DevEx payments become royalties, and U.S. withholding may apply based on your tax info on file.

The October 15 date is soft. October 31 is the one that bites. If you request a payout after the switch and your forms are not valid, the withholding applies to that payout. [1]

U.S. Creators: The W-9 Path

If you are a U.S. citizen, U.S. resident, or a U.S. business entity, you file a Form W-9 through the Taxes page. [1] Roblox validates your taxpayer identification number with the IRS, and if it will not validate, your W-9 is invalid and 24% backup withholding gets applied to your DevEx payments. [1]

Three things to know that catch people out.

Your existing Tipalti W-9 is not automatically stale. If it is already valid, Roblox migrates it to the Taxes page and you see a Validated status with nothing to do. [1]

Backup withholding is not only for people who file nothing. It also applies if your TIN does not match IRS records, or if the IRS has sent Roblox a B-Notice saying you are subject to it. [1]

U.S. creators with a valid W-9 on file have no U.S. withholding at all. This change costs compliant U.S. creators nothing. It costs only the ones who never filed, or filed wrong. [1]

Non-U.S. Creators: The W-8 Path, and Where the Money Actually Is

This is the group with real exposure. If you are a non-U.S. person, you file a W-8BEN as an individual or a W-8BEN-E as a business entity such as a corporation or LLC. [1]

Without valid tax information by October 31, 2026, 24% backup withholding can hit your full payout. File in time and you fall into the 0% to 30% range on earnings tied to U.S. players. Which end of that range you land at depends on your country of residence and whether you successfully claim a treaty. [1]

To claim a treaty rate, your W-8 has to clear three hurdles: it must be valid and complete, it must include a taxpayer identification number (a U.S. TIN or a foreign TIN from your country), and the country of citizenship or incorporation you list has to match the country in your permanent residence address. [1]

The 24% figure is a backup withholding rate, not the treaty rate. Treat them as different animals. Backup withholding is the IRS penalty rate for missing or inconsistent information. Treaty rates are negotiated and sit far lower, often 0% or 10% depending on your country. If you are non-U.S. and you do nothing, you are paying the penalty rate, not the treaty rate. [1]

One structural point worth internalizing: U.S. withholding only applies to earnings related to sales to U.S. players. If most of your player spending comes from outside the U.S., your withholding exposure is small regardless of what you do, because the withholding is scoped to U.S.-source income. [1]

Step by Step: Getting Your Taxes Page Validated Before the Deadline

Go to Creator Hub, then Finances, then Taxes. [1]
Read the status line. Validated means you are done. Not started, Under review, Additional info needed, and Failed all mean action is required. [1]
Select Get started for a new submission or Continue to resume an existing one. [1]
Enter your details exactly as the tax authority has them: legal name, country of citizenship or incorporation, permanent address, and your TIN. [1]
Wait for the review. Most submissions validate automatically. Complex cases get a manual review and an email when it finishes. [1]
If you file a W-8BEN or W-8BEN-E, claim the treaty explicitly and make sure your citizenship or incorporation country matches your residence address. [1]

Name accuracy matters more than people expect. On the DevEx cash out form you must use your legal name. Nicknames, joke names, and family member names can make you ineligible or stall your review. If your request gets rejected over a name discrepancy, do not just resubmit. Contact Roblox through the support form, because you cannot correct your own name on your own. [2]

Rates, Withholding, and What a Payout Looks Like

Here are the three numbers in force, because they are the ones people mix up.
[th]Rate[/th][th]Per Earned Robux[/th][th]Value at 30,000 Robux[/th][th]Who gets it[/th]

Legacy	0.0035	$105	Balances earned before September 5, 2025 at 10am PT. You must clear these before you can cash out at the current rate.
Standard	0.0038	$114	Everyone else, the default rate.
U.S. 18+	0.0054	$162	Eligible games, spend from age-checked 18+ U.S. players. Cashed out first.

The standard rate moved from 0.0035 to 0.0038 on September 5, 2025 at 10am PT, and balances earned before that date still cash out at the old rate. You can only cash out old-rate Robux before you can cash out any Robux at the current rate. Spending Robux does not clear your old balance; spending deducts from your total balance but does not count toward clearing it. [2]

The U.S. 18+ rate is 0.0054 for eligible in-game spend from age-checked 18 and over U.S. players, which is $0.54 per 100 Earned Robux against $0.38 for the standard rate. That is a 42% increase, and it applies to developer products, passes, subscriptions, and private servers. In-game avatar items do not qualify. The rate took effect June 8, 2026, and eligible 18+ U.S. earnings are cashed out first, before the standard rate. [4]

Games must also meet avatar requirements to qualify. If you use Roblox's built-in avatar system, you have to set the project to R15 Only, so that no player can spawn in or swap to an R6 rig at any point during active play. A game where R6 is reachable is not eligible. [4]

The U.S. 18+ rate and the Roblox Plus incentive are not additive. You get the higher of the two, not both stacked. [4]

Now the tax side. U.S. withholding is not a fee, and it is not a Roblox cut. It is income tax paid in advance, remitted to the IRS on your behalf, and you will report it on your return. Roblox calculates the withholding before each payout, and Tipalti receives only the net amount. Tipalti's dashboard will not show you tax or withholding details, so do not go looking for them there. [1]

Year-End Forms Are Splitting in 2026

Because the classification flips mid-year, 2026 is a two-form year for U.S. creators. You may get a Form 1099-NEC for payments before November 1, 2026 and a Form 1099-MISC for payments after November 1, 2026. Both report the same income, just under different boxes. [1]

Non-U.S. creators get a Form 1042-S. Roblox issues it regardless of the amount, so you should expect it even for small payouts. [1]

You can download 2026 and later forms from the Taxes page in Creator Hub. For older 1099-NEC or 1042-S forms from 2025 and earlier, up to seven years back, you request them through support on the Taxes page. [1]

FAQ

Will my DevEx rate go up or down on November 1, 2026?
No. The rate is unchanged. The standard rate is still 0.0038 per Earned Robux and the U.S. 18+ rate is still 0.0054. What changed is the tax classification and the withholding applied to each payout, not the exchange rate itself. [2]

Do I need a new Tipalti account?
No. Tipalti keeps processing your payouts and you do not need a new account or login. Tax documentation moved to the Taxes page in Creator Hub, but the payment rail stayed the same. Keep your Tipalti payment information current so payouts are not interrupted. [1]

I am outside the U.S. and my game mostly has players in my own region. Do I still need to file?
Yes, if you cash out through DevEx. Eligibility for the program requires a W-9 or W-8 on file with Roblox regardless of where you live. The practical exposure is smaller for you, because U.S. withholding applies to earnings related to sales to U.S. players, not to all your earnings. But the form itself is still required to participate. [2]

What happens if I miss the October 31, 2026 deadline?
Your payouts continue, but 24% U.S. backup withholding can apply to your full payout. If you file valid tax information after the deadline, the withholding drops for future payouts, but the withheld amount from payouts already processed is not automatically refunded by Roblox. That is why the deadline matters more than the October 15 recommendation. [1]

Is Roblox giving tax advice or can I get my forms filled in for me?
No. Roblox states plainly that it does not provide tax advice. The Taxes page guides you to the correct form based on what you enter, and for questions specific to your situation you need a qualified tax professional. Never send tax forms or sensitive personal information by email. Official Roblox tax emails come from no-reply@roblox.com or support-en@roblox.com. [1]

Can I still cash out Robux I earned before September 5, 2025?
Yes, but those balances cash out at the old 0.0035 rate and you have to clear them before any Robux at the current rate. Spending Robux does not clear that legacy balance, it only reduces your total balance. [2]

Sources