How to Withdraw Earnings from DistroKid: A Clear Step-by-Step Guide (2026)
If you’re an independent artist using DistroKid to distribute your music, you’ve likely seen royalties start to accumulate in your account. Withdrawing those earnings is straightforward once everything is set up properly. This guide walks you through the process in simple, easy-to-follow steps, even if you’ve never done it before.
DistroKid partners with a payment processor called Tipalti to handle payouts. You’ll need to configure your tax information and payout method through Tipalti before you can withdraw funds. DistroKid itself doesn’t take a percentage of your royalties—they pass on 100% of what streaming platforms and stores send them (minus any processing fees or taxes).
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Prerequisites Before Withdrawing
- You must have at least $6 USD available in the “We Owe You” section of your DistroKid Bank (this is the minimum withdrawal amount).
- Your payout method and tax information must be set up in Tipalti.
- Earnings typically appear 1-3 months after streams or sales occur, as platforms report to DistroKid on varying schedules.
Step 1: Access Your DistroKid Bank
- Log in to your DistroKid account at distrokid.com.
- Click on Bank in the top navigation menu (or go directly to https://distrokid.com/bank).
- Here, you’ll see:
- Your total all-time earnings.
- Previous withdrawals.
- The amount currently available (“We Owe You”).
If the “Withdraw Earnings” button isn’t visible, it’s likely because your balance is below $6, or your payout/tax setup is incomplete.
Step 2: Set Up Your Payout Method and Tax Information
You’ll only need to do this once (or update it if details change). It’s done through Tipalti.
- From your DistroKid dashboard, click your profile icon in the top right corner.
- Select Payout Method (or go directly to https://distrokid.com/payouts).
- Click Update your Tipalti settings. You’ll be prompted to enter your DistroKid password to access the Tipalti portal.
- In Tipalti:
- Choose your preferred payout method. Options include:
- PayPal: Convenient and fast, but may have percentage-based fees (varies by country) plus currency conversion costs.
- ACH (Direct Deposit): Available for U.S. bank accounts; low fee (around $1).
- Wire Transfer: Good for larger amounts; higher fixed fees (often $15–$30).
- eCheck/Local Bank Transfer: Low or no fees in supported regions.
- Paper Check: Slower and may have fees.
- Enter your bank or payment details accurately.
- Complete the tax form:
- U.S. residents: Fill out a W-9.
- Non-U.S. residents: Fill out a W-8BEN (or equivalent). This can reduce or eliminate the default 30% U.S. tax withholding if your country has a tax treaty with the U.S.
- Submit the information. Tax form approval usually takes 24–48 hours.
Tip: Fees are deducted automatically from your withdrawal (charged by Tipalti, not DistroKid). Check the exact fees for your chosen method in Tipalti—they vary by country, amount, and currency. If converting currencies, watch for FX (foreign exchange) fees up to 3%.
Step 3: Request Your Withdrawal
Once your setup is complete and you have at least $6 available:
- Go back to your DistroKid Bank page (https://distrokid.com/bank).
- Click the Withdraw Earnings button.
- The full “We Owe You” amount will be sent (minus any fees).
- Confirm the request.
DistroKid processes withdrawals twice a week. From request to receipt, it typically takes up to 14 days (often faster, like 1–5 business days, depending on the method).
Tracking Your Withdrawal
- Check status on your Bank page—a pending withdrawal shows as a gray box with time elapsed.
- You’ll get email updates from Tipalti.
- Completed withdrawals appear in the “See All Withdrawals” section.
If something goes wrong (e.g., rejected by your bank), the funds return to your DistroKid Bank (minus fees) after a few weeks, and you can try again.
Tips to Maximize Your Payouts
- Batch withdrawals: Wait until you have a larger amount (e.g., $200+) to minimize the impact of fixed fees.
- Choose wisely: For small amounts, PayPal might be easiest. For large ones or U.S. users, ACH or wire can save money.
- Tax note: Consult a tax professional for advice—DistroKid can’t provide it.
- You can withdraw anytime there’s enough balance—no need to wait for specific dates.
That’s it! Once set up, future withdrawals are just a couple of clicks. If you run into issues, check DistroKid’s Help Center or contact their support.
Happy distributing—and congrats on those royalties!