Coursera vs Udemy vs Khan Academy: Instructor Earnings & Tax Guide (2025 Comparison)
International Online Education Platforms: Instructor Earnings & Tax Handling Compared (Coursera · Udemy · Khan Academy)
This guide distills the latest, officially confirmed information on how instructors get paid (or not) and how taxes are handled across three major global platforms: Coursera, Udemy, and Khan Academy. We focus on revenue models, payout mechanics, and tax documentation so creators can choose the right platform and stay compliant in 2025.
Snapshot: Who Can Earn on Each Platform?
- Udemy: Open marketplace for individual instructors. You can publish paid courses and receive a revenue share per sale and from subscriptions (Udemy Business).
- Coursera: Courses are provided via university/industry partners. Individuals typically do not sell independently; compensation flows through partner agreements rather than a public marketplace rev-share schedule.
- Khan Academy: A 501(c)(3) nonprofit offering free learning. It does not operate a paid course marketplace for outside instructors and relies on donations, not instructor sales.
Udemy: Revenue Share, Payouts & Taxes
Revenue Share (Marketplace vs. Subscriptions)
- Marketplace sales: Instructors earn 37% for organic sales (standard marketplace rule).
- Udemy Business (subscriptions): Subscription revenue share reduced to 17.5% in January 2025 (down from 20%) and planned to reach 15% in January 2026.
Payout Mechanics
Udemy aggregates monthly earnings and pays instructors after refund periods and minimum thresholds are met, per Udemy’s official payout calendar.
Tax Forms & Withholding
- U.S. persons: W-9; non-U.S. persons: W-8BEN / W-8BEN-E.
- Year-end forms: 1099 (U.S.) or 1042-S (foreign instructors).
- Valid W-9 = 0% IRS withholding for U.S. instructors (no backup withholding).
Coursera: Partner-Based Compensation & Tax Considerations
Coursera partners with universities and enterprises; compensation depends on partner contracts rather than open rev-share terms. In 2025, Coursera shifted to engagement-based allocations for educator partners.
Khan Academy: No Instructor Sales
Khan Academy is a nonprofit offering free courses. No instructor uploads or revenue programs exist; funding is donation-based.
Comparison Table (2025)
| Platform | Who Can Publish? | Earnings Model | Rev-Share (2025) | Tax Docs |
|---|---|---|---|---|
| Udemy | Open to all | Per sale + subscription | 37% (Marketplace) / 17.5% (Subscriptions) | W-9 / W-8 / 1099 / 1042-S |
| Coursera | Via partner institutions | Partner contract model | Engagement-based allocation | Per contract or institution |
| Khan Academy | No uploads by users | Free / donation-funded | N/A | N/A |
Conclusion
Udemy offers the clearest revenue model for individual instructors (37% marketplace, 17.5% subscriptions). Coursera’s partner model compensates via contracts, and Khan Academy remains a free nonprofit. Tax handling varies—Udemy provides IRS forms, while Coursera and Khan manage via institutions or grants. Instructors should confirm policies and consult tax advisors before declaring income.
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