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Business Tax5 min readMar 17, 2026
Tax Rules for Airbnb and Short-Term Rental Hosts
Renting out your home or spare room on Airbnb has important tax implications. Here's what every short-term rental host needs to know.
Tax Rules for Airbnb and Short-Term Rental Hosts
The 14-Day Rule
If you rent your home for 14 days or fewer per year:
- Rental income is completely tax-free
- No reporting required
- Cannot deduct rental expenses (but can still deduct mortgage interest and property taxes)
Renting More Than 14 Days
Income is taxable. You can deduct expenses proportional to the time rented.
Schedule E vs. Schedule C
- Schedule E: Passive rental (most Airbnb situations)
- Schedule C: If you provide substantial services to guests (hotel-like: meals, daily cleaning, concierge) — subject to self-employment tax
Deductible Expenses
- Platform fees (Airbnb service fees)
- Cleaning and supplies
- Utilities (proportional to rental use)
- Mortgage interest (proportional)
- Property taxes (proportional)
- Insurance (proportional)
- Depreciation (proportional)
- Furniture and furnishings
Calculating Proportional Expenses
Rental use % = Rental days / Total days used
Form 1099-K from Airbnb
Airbnb will issue Form 1099-K if you receive over $600 in payments (2025+).
Self-Employment Tax
If on Schedule C, all net income is subject to self-employment tax (15.3%).
Airbnb host? Make sure you're reporting correctly and capturing all deductions.