Airbnb Host Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Idaho?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Idaho state levels. The IRS considers Airbnb hosting a business activity, meaning you’re required to report your earnings and pay 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).

Idaho Specific Rules: Idaho has a flat income tax rate. For 2024, the rate is 5.8%. This means your net profit from your Airbnb (after all allowable deductions on Schedule C) will be subject to this flat rate. Idaho also requires you to report your federal Schedule C income on their state income tax form (Form 40). Idaho generally follows federal rules regarding deductions, but it’s always best to check the Idaho State Tax Commission website for any specific differences.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Idaho 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, internet, and trash removal are deductible. Similar to mortgage interest, allocate these costs if you also live in the property.
• Cleaning & Maintenance: Costs associated with cleaning services, repairs, and general maintenance (e.g., lawn care, plumbing) are fully deductible. Keep detailed records of these expenses.
• Mileage: The IRS allows you to deduct mileage for trips directly related to your Airbnb business. This includes trips to the property for cleaning, maintenance, guest check-in/check-out, and supply purchases. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate on the IRS website: https://www.irs.gov/newsroom/standard-mileage-rates-for-2024). You can also deduct actual car expenses (gas, oil, repairs, etc.) if you choose, but mileage is often simpler.
• Airbnb Fees: The fees Airbnb charges you are a deductible business expense.

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.

You’ll calculate this on Schedule SE (Self-Employment Tax). The combined rate is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You only pay self-employment tax on profits exceeding $400. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040.

Closing Tip for Idaho Residents

Running an Airbnb in Idaho can be a rewarding experience, but staying organized with your income and expenses is crucial for a smooth tax filing process. Keep 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!) if you have any questions or need assistance with your specific tax situation. The Idaho State Tax Commission website (https://tax.idaho.gov/) is also a valuable resource.