Airbnb Host Taxes in Georgia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Georgia?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Georgia state levels. The IRS considers Airbnb hosting a business activity, meaning you’re responsible for reporting your earnings and paying taxes on any profits.

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

Georgia Specific Rules: Georgia has a flat income tax rate of 5.49% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.49% rate. Georgia also allows for standard deductions and certain itemized deductions, which can reduce your overall tax liability. You'll file Form 500 to report your Georgia income tax.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax bill. Here are some common write-offs for Georgia Airbnb hosts:

• Mortgage Interest & Property Taxes: If you own the 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, internet, and cable are deductible, again allocating the portion used for rental purposes if it’s not exclusively a rental property.
• Cleaning & Maintenance: Costs associated with cleaning services, repairs, and general maintenance (e.g., plumbing, landscaping) are fully deductible.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (guest pick-up/drop-off, grocery shopping for guest amenities, trips to the hardware store for repairs), you can deduct either the actual expenses (gas, oil, repairs, etc.) or the standard mileage rate. For 2024, the standard mileage rate is 67 cents per mile. Keep a detailed mileage log!
• Airbnb Fees: The fees Airbnb charges you are a deductible business expense.
• Software & Subscriptions: Costs for property management software, smart home devices (locks, thermostats), and other subscriptions used for your Airbnb business are deductible.

The 15.3% Self-Employment Tax Surprise

Because you’re considered self-employed as an Airbnb host, you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is known as self-employment tax. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400.

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

Closing Tip for Georgia Residents

Running an Airbnb in Georgia can be a rewarding experience, but staying on top of your taxes is crucial. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with all applicable tax laws. Proper planning can save you significant money and stress during tax season.