The information in this article is up to date for tax year 2025 (returns filed in 2026).
Renting your home or spare room on a home-sharing site like Airbnb or Vrbo is a quick way to earn extra cash. But do you know what your tax liability is as a host? Are you getting all your tax deductions? We’ve got answers to some of the most frequently asked tax questions from short-term rental hosts like you.
Do I have to pay taxes on Airbnb income?
If you rent your home, apartment, or spare room for more than 14 days in a year, you are required to pay taxes on the income. That includes all the money you receive for the use of your property and any services or “extras” you tack on, like cleaning fees or meals.
If you rent your space for less than 14 days total in one year, you will not need to report the rental income you received. This exception is known as the 14-day rental rule.
Does Airbnb, Vrbo, or other listing sites withhold taxes for me?
The IRS requires listing sites to collect tax information from their hosts to report US-earned income and federal tax accurately. To do this, you will need to complete Form W-9 for each platform you have your rental listed.
Different listing sites have varying policies regarding income tax withholdings. Generally, you can expect sites to withhold between 24% and 28% for taxes. However, if you fail to provide your tax information, the default withholding rate rises to 30%. You may also be subject to additional consequences depending on the listing sites policies. For instance, Airbnb states that not submitting Form W-9 may lead to payment freezes or even blocking access to your listing calendar.
Vrbo’s policy around tax withholdings includes automatically withholding 30% for non-US residents listing properties in the US (unless the host has submitted Form W-8ECI showing they are tax-exempt). Airbnb will also withhold 30% for non-US resident hosts unless they have submitted Form W-8ECI.
If you find that too much money has been withheld from your income, the excess can either be applied to any tax liabilities you may have or refunded to you. The best thing you can do is fill out your Form W-9 taxpayer information correctly and report your rental income on your tax return.
What Airbnb tax deductions are available?
If you are required to report your rental income (because you rented your space for more than 14 days in the year), the IRS says you can deduct certain expenses to lower your tax liability. Examples of AirBnb tax deductions may include:
- Cleaning and maintenance fees (including laundry and cleaning supplies)
- Property insurance and private mortgage insurance (PMI)
- Service fees charged by Airbnb or another host site
- Utilities (water, gas, electricity, TV, internet, etc.)
- Repairs made to the rental property, including furniture and appliances
- Advertising
Note: If you aren’t required to report your income because your rental qualifies for the 14-day rental rule, your hosting expenses aren’t deductible.
How to report Airbnb income on your tax return
When reporting Airbnb or rental income you must include the gross income from your rental properties. . This includes all the payments you received from your guests before any refunds or service fees are deducted. As a result, your adjusted gross income will likely be a larger amount than what the hosting site paid out to you. After reporting your gross income, you can deduct allowable expenses to adjust your taxable income.
When you file with TaxSlayer, we’ll guide you to ensure your rental income is reported accurately and you get all possible deductions.
Simply follow the step-by-step instructions in the program and enter your income information carefully, exactly as it appears on your tax form (if you receive one). TaxSlayer will do all necessary calculations based on the info you provide.
If you choose to file your taxes without using a tax platform, you’ll need to gather specific forms and information. Here’s a general overview of what you may need:
- Form 1040: This is the primary form used to file an individual income tax return. While your income and deductions are detailed in schedules that will be attached to your return, the total amounts are summarized on Form 1040.
- Schedule C: This form reports income or loss from rental activities that qualify as a business rather than passive investments.
- Schedule E: Schedule E reports income or loss from rental real estate, typically when rental activities are considered passive investments.
- Documentation of income and expenses: Keep thorough records of all rental income received and costs incurred. This could include receipts, invoices, and any tax-related documents provided by Airbnb.
Do Airbnb, Vrbo, or other listing sites issue 1099 forms?
Vacation rental sites like Airbnb, HomeAway, and Vrbo will typically send Form 1099-K to hosts with more than 200 reservations and who earn over $20,000. However, depending on the type of payments received, hosts may also receive other tax forms such as Form 1099-MSIC or 1099-NEC. If you have taxes withheld from your payouts, the withholdings will also appear on your 1099.
If I don’t get a tax form, do I still owe taxes?
If you don’t receive a form, it doesn’t mean you don’t owe taxes. Your host site reports your income to the IRS on their end, so it’s important to report the same income when you file your tax return. Even if you only rent your space for less than 14 days, the IRS will know about it.
If you are audited, you’ll need to have records of your expenses and income to match. If you are eligible for the Master’s exception, you’ll need to be able to show that your rental time was, in fact, less than two weeks.
Do I have to collect occupancy tax?
Depending on where you live, you may need to collect occupancy tax from your guests. Occupancy tax – also known as tourist tax, hotel tax, room tax, and lodging tax – is a tax that a visitor is required to pay when they rent a property.
The rate and rules for occupancy tax vary by country, state, county, and city. Airbnb and Vrbo only collect occupancy tax if you live in select areas. If this is the case, the amount of tax will appear on your listing’s public page. For all others, you are responsible for collecting occupancy tax and sending it in yourself.
Is Airbnb hosting considered self-employment?
If the room or home you list is used only for renting, and if you provide over-the-top services for your guests (like meals and cleaning), you could be considered self-employed by the IRS. In other words, if your Airbnb or Vrbo rental looks more like a traditional bed & breakfast, you would need to start paying self-employment tax in addition to your rental tax. Self-employment tax is a 15.3% tax that covers Medicare and Social Security.
