Airbnb Taxes for Hosts: 1099-K, Deductions, the 14-Day Rule and More
How Airbnb income is taxed, when it is tax-free, Schedule E vs. Schedule C, the deductions hosts can claim, depreciation, occupancy taxes and a worked example.
Listen to this article
Key takeaways
- Rent out a home you also live in for 14 days or less a year, and the income is tax-free (and not reported).
- Otherwise, Airbnb income is taxable. Most hosts report it on Schedule E without self-employment tax; hosts who provide hotel-like services use Schedule C and pay self-employment tax.
- Airbnb sends a 1099-K above $20,000 and 200 transactions (lower in some states), but all income counts.
- Cleaning, supplies, fees, utilities, repairs, insurance, interest, property tax and depreciation can offset much of the income.
Short-term rental income looks simple: guests pay, Airbnb pays you. Tax-wise it is one of the more complicated side incomes, because rental rules, business rules and passive activity rules overlap. This guide explains the parts every Airbnb host should know before filing.
Please note
General information about US federal rules as of October 2026; not tax advice. Short-term rental taxation depends heavily on the facts, and state and city rules on registration and occupancy taxes vary. A tax professional is worth it here.
Is Airbnb income taxable?
Yes, with one notable exception: the 14-day rule. If you use a dwelling as a home and rent it for fewer than 15 days during the year, you do not report the rental income, and you cannot deduct rental expenses. Homeowners near big events often use this rule. Above 14 rental days, all rental income is reportable, whether or not you receive a 1099-K.
The Airbnb 1099-K
As a payment platform, Airbnb issues Form 1099-K to US hosts and co-hosts with more than $20,000 in gross payments and more than 200 transactions. Some states require it at lower amounts: $600 in Maryland, Massachusetts, Vermont, Virginia and the District of Columbia, and $1,000 with at least four transactions in Illinois. The gross amount can include cleaning fees and other amounts that are not profit, so reconcile it with your Airbnb earnings report and deduct host service fees as an expense.
Schedule E or Schedule C?
| Schedule E (rental) | Schedule C (business) | |
|---|---|---|
| When | You provide customary services: cleaning between stays, utilities, Wi-Fi, linens | You provide substantial services for guests' convenience, such as daily cleaning, meals, concierge or tours |
| Self-employment tax | No | Yes, 15.3% on 92.35% of profit |
| Losses | Subject to passive activity rules (see below) | Business loss rules |
Most Airbnb hosts belong on Schedule E. Offering services like a bed and breakfast moves you toward Schedule C and adds self-employment tax.
The 7-day rule and passive losses
Rental losses are generally passive and can only offset passive income. Many long-term landlords can still deduct up to $25,000 of losses if they actively participate, phased out between $100,000 and $150,000 of modified AGI. Short-term rentals are different: if the average guest stay is 7 days or less, the property is not treated as a "rental activity" under the passive loss rules. If you also materially participate (for example 500+ hours a year, or 100+ hours and no less than anyone else, including cleaners), losses can offset wages and other income. This is often called the short-term rental loophole. Logs of your hours are essential if you rely on it.
Deductions for Airbnb hosts
| Expense | Notes |
|---|---|
| Airbnb host service fees | Fully deductible |
| Cleaning and laundry | Including cleaners you pay |
| Supplies | Toiletries, coffee, linens, small items |
| Utilities, internet, streaming | Rental share |
| Repairs and maintenance | Repairs now; improvements are depreciated |
| Insurance | Including short-term rental coverage |
| Mortgage interest and property tax | Rental share |
| Furniture, appliances, electronics | Depreciation; 100% bonus depreciation for property placed in service after January 19, 2025 |
| The building | Depreciated over 27.5 years for residential rentals; many tax professionals use 39 years for short-term rentals with mostly stays under 30 days |
| Licenses, permits, software, smart locks | Business-related costs |
| Travel to the property | For management or repairs, at 72.5¢ / 76¢ per mile in 2026 |
If you also use the home yourself
Split expenses by days: rental days divided by total days used. If your personal use exceeds the greater of 14 days or 10% of the rental days, the home counts as a residence, and rental deductions are limited to rental income, so you cannot create a loss.
Example: a condo on Airbnb
| Item | Amount |
|---|---|
| Rental income (180 nights, no personal use) | $36,000 |
| Cleaning | −$4,800 |
| Supplies | −$900 |
| Utilities and internet | −$3,000 |
| Insurance | −$1,200 |
| Repairs | −$1,100 |
| Property tax | −$3,600 |
| Mortgage interest | −$7,200 |
| Airbnb host fees | −$1,080 |
| Net before depreciation | $13,120 |
| Depreciation: $240,000 building over 39 years | −$6,154 |
| Taxable rental income (Schedule E) | $6,966 |
This income is taxed at the host's regular income tax rate, with no self-employment tax because it is a Schedule E rental. In the 22% bracket that is about $1,533 of federal tax. Using 27.5 years instead, depreciation would be about $8,727 a year. Furniture bought for the condo could be deducted in full in the year it is placed in service. Depreciation reduces taxes now but is "recaptured" (taxed at up to 25%) when you sell.
Occupancy and local taxes
Many cities, counties and states charge lodging or occupancy taxes on short stays. Airbnb collects and remits them automatically in many places, but not everywhere, and some places also require registration or a business license. Check your local rules; unpaid occupancy taxes are the host's responsibility.
The QBI deduction for rentals
If your rental rises to the level of a trade or business, you may qualify for the 20% QBI deduction. The IRS offers a safe harbor for rental real estate with at least 250 hours of rental services a year and separate records. Short-term rentals with substantial services are more likely to qualify.
Frequently asked questions
Do I have to pay taxes on Airbnb income?
Yes, unless you rent your home for 14 days or less in the year. Above that, all rental income is taxable, with or without a 1099-K.
Does Airbnb send a 1099?
Airbnb issues a 1099-K to US hosts with more than $20,000 and 200 transactions, or at lower amounts in states such as Massachusetts, Maryland, Vermont, Virginia, Illinois and DC.
Do Airbnb hosts pay self-employment tax?
Only if they provide substantial services and report on Schedule C. Typical hosts report on Schedule E and pay no self-employment tax.
What can I deduct as an Airbnb host?
Host fees, cleaning, supplies, utilities, repairs, insurance, the rental share of mortgage interest and property tax, and depreciation on the building and furnishings.
Is Airbnb income passive?
Usually, but if the average stay is 7 days or less it is not a rental activity under the passive rules, and with material participation losses may offset other income.
