Turo Host Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Idaho?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Idaho 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.

Idaho Specific Rules: Idaho has a flat income tax rate of 5.8% for 2024. Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.8% Idaho income tax rate. Idaho also requires you to file an Idaho Form 40 with your federal return. Idaho generally follows federal rules regarding deductions, so deductions claimed on your Schedule C will typically be allowed for Idaho state income tax purposes as well.

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: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven for Turo-related activities (picking up/dropping off vehicles, inspections, etc.). Keep a detailed mileage log!
• Vehicle Depreciation: Instead of taking the standard mileage rate, you can deduct depreciation on your vehicle. This allows you to write off a portion of the vehicle's cost over several years. This can be more beneficial if you have a newer, more expensive vehicle. Consult with a tax professional to determine the best method for your situation.
• Cleaning & Maintenance: Expenses for cleaning, detailing, oil changes, tire rotations, and other vehicle 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

As a self-employed individual (which you are as a Turo 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). However, 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, which reduces your overall tax liability.

Closing Tip for Idaho Residents

Running a Turo business can be profitable, but it also comes with tax responsibilities. Accurate record-keeping is crucial. Keep detailed logs of mileage, expenses, and income. Consider using accounting software designed for self-employed individuals. Finally, don’t hesitate to consult with a qualified tax professional in Idaho – like myself – to ensure you’re taking all eligible deductions and complying with all applicable tax laws. We can help you navigate the complexities of self-employment tax and maximize your savings!