Turo Host Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Delaware?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Delaware state levels. The IRS considers Turo hosting a business activity, meaning you’ll need to report your earnings and expenses.

Federal Requirements: You’ll report your Turo income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss. Keep meticulous records of all income and expenses.

Delaware Specific Rules: Delaware has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Turo net profit (after Schedule C deductions) will be added to your other income sources (W-2 wages, investment income, etc.) to determine your overall taxable income and the applicable tax bracket. Delaware’s Division of Revenue website (revenue.delaware.gov) provides current tax rates and forms. You will file a Delaware income tax return (Form 1040-D) to report this income.

Top Tax Write-offs for Turo Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common deductions for Turo hosts:

• Mileage: You can deduct the business portion of your vehicle’s mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS at irs.gov). You must choose either the standard mileage rate or actual expenses (see below), not both.
• Actual Vehicle Expenses: Instead of mileage, you can deduct actual expenses like gas, oil changes, repairs, maintenance, tires, insurance, registration fees, and car washes. You’ll need to track these expenses carefully. If you choose this method, you may also be able to claim depreciation.
• Turo Fees & Software: The fees you pay to Turo (commission, etc.) are deductible business expenses. Also, any software or subscription services used specifically for managing your Turo business (e.g., scheduling apps, expense trackers) are deductible.
• Cleaning & Detailing: Costs associated with cleaning and detailing your vehicle between rentals are deductible. Keep receipts!

The 15.3% Self-Employment Tax Surprise

As a Turo host, you’re considered self-employed. This means you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes – collectively known as self-employment tax. This totals 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, reducing your overall tax liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Delaware Residents

Navigating taxes as a Turo host can be complex. I strongly recommend keeping detailed 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 taking all eligible deductions and complying with both federal and Delaware tax laws. Proactive tax planning can save you significant time and money when filing in 2025.