Turo Host Taxes in Indiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Indiana?

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

Indiana Specific Rules: Indiana has a flat income tax rate of 3.15% 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 3.15% Indiana state income tax. Indiana follows federal adjusted gross income (AGI) as a starting point, so your Schedule C profit directly impacts your Indiana tax liability.

Top Tax Write-offs for Turo Hosts

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

• 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 guests, maintenance, cleaning supplies).
• Vehicle Depreciation: Instead of taking mileage, 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 your vehicle is newer and has a higher value. Consult with a tax professional to determine which method (mileage vs. depreciation) is best for your situation.
• Cleaning & Maintenance: Expenses for cleaning supplies, car washes, oil changes, tire rotations, and other routine maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees Turo charges you, as well as any subscription costs for software used to manage your listings (e.g., pricing tools, scheduling apps) are deductible business expenses.

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. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare).

You’ll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on 92.35% of your net profit from Schedule C. You do get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040.

Closing Tip for Indiana Residents

Don't wait until the last minute! Careful record-keeping throughout the year is crucial for accurate tax filing. Consider using accounting software or a spreadsheet to track your income and expenses. Tax laws can be complex, and this information is for general guidance only. I highly recommend consulting with a qualified tax professional in Indiana to ensure you're taking advantage of all applicable deductions and complying with all relevant tax regulations.