Airbnb Host Taxes in Alaska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Alaska?

Yes, even though Alaska has no state income tax, income earned as an Airbnb host is subject to federal income tax. The IRS considers Airbnb hosting a business activity, meaning you’ll report your earnings and expenses on Schedule C (Profit or Loss From Business) as part of your Form 1040. You'll need to track all income received through Airbnb, as well as all related expenses.

Alaska Specifics: Because Alaska does not have a state income tax, you won’t file a state income tax return. Your tax obligations are solely to the IRS. However, if you operate your Airbnb as part of a larger business with activities outside of Alaska that are subject to state income tax elsewhere, that could introduce state tax complexities. This guide assumes a standalone Airbnb hosting activity within Alaska.

Top Tax Write-offs for Airbnb Hosts

• Mortgage Interest & Property Taxes: If you own your property, you can deduct the portion of your mortgage interest and property taxes that relate to the time the property is used for rental. If you rent out only a portion of your home, you’ll need to allocate these expenses based on the percentage of your home used for rental.
• Utilities: Expenses like electricity, gas, water, and internet are deductible, again allocating the portion used for rental purposes if you live in the property.
• Cleaning & Maintenance: Costs associated with cleaning the property between guests, as well as repairs and maintenance (e.g., fixing a leaky faucet, painting) are deductible. Major improvements that increase the property's value are not immediately deductible; they are depreciated over time.
• Mileage: The IRS allows you to deduct business-related mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (always verify the official IRS rate at IRS.gov). Keep a detailed log of all business miles driven (e.g., to purchase supplies, to the property for cleaning/maintenance).
• Airbnb Fees & Software: Fees paid to Airbnb and the cost of any software used to manage your listing (e.g., Smartbnb, Hostaway) are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

As an Airbnb host, you're considered self-employed by the IRS. This means you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which you’ll file along with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income, which can help reduce your overall tax liability.

Closing Tip for Alaska Residents

Running an Airbnb in Alaska can be a rewarding experience! Remember to keep meticulous records of all income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all federal tax regulations. Proactive tax planning can save you time and money in the long run.