Turo Host Taxes in Alaska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Alaska?

Yes, income earned as a Turo host is taxable at the federal level. You’ll report your Turo earnings and expenses on Schedule C (Profit or Loss From Business) as self-employment income. This means you are essentially running a small business, and the IRS treats it as such. You'll need to track all income received from Turo rentals, as well as all related expenses (more on those below!).

However, Alaska is unique: Alaska has no state income tax. This means you will not file a state income tax return, and you won’t owe any state income tax on your Turo earnings. Your tax obligations are solely to the federal government.

Top Tax Write-offs for Turo Hosts

As a Turo host, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Turo-related activities (picking up/dropping off vehicles, maintenance, cleaning, etc.). You cannot use the standard mileage rate for personal miles.
• Vehicle Depreciation: Instead of taking mileage, you can depreciate the cost of your vehicle over several years. This is more complex and generally requires professional assistance, but can be beneficial, especially for newer, more expensive vehicles.
• Cleaning & Maintenance: Expenses for cleaning supplies, car washes, oil changes, tire rotations, and other maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees you pay to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., scheduling tools, expense trackers) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called self-employment tax, and it’s currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You’ll calculate this on Schedule SE (Self-Employment Tax).

You only pay self-employment tax on your profit (income minus expenses). However, you don’t pay self-employment tax on the entire profit. Once your net earnings reach a certain amount (for 2024, it's $400), self-employment tax applies. You'll also get to deduct one-half of your self-employment tax from your gross income.

Closing Tip for Alaska Residents

While the lack of state income tax in Alaska is a benefit, don’t overlook your federal tax obligations as a Turo host. Meticulous record-keeping is crucial – track all income and expenses diligently. Consider using accounting software or consulting with a qualified tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all IRS regulations. Good luck with your Turo business, and happy tax filing!