Airbnb Host Taxes in Iowa - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Iowa?

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

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. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss.

Iowa Specific Rules: Iowa has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your net profit from your Airbnb (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for Iowa. Iowa then applies its graduated tax brackets to calculate your state income tax liability. You'll report this income on Iowa Form 1040. Be sure to check the current Iowa tax brackets for the 2024 tax year (filing in 2025) on the Iowa Department of Revenue website (tax.iowa.gov).

Top Tax Write-offs for 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 Airbnb. 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: Similar to mortgage interest and property taxes, you can deduct the portion of your utilities (electricity, gas, water, internet, etc.) that are attributable to the rental use of your property.
• Supplies & Consumables: Expenses for items provided to guests, such as toiletries (soap, shampoo), cleaning supplies, linens, and paper products, are deductible.
• Mileage & Vehicle Expenses: When you drive for Airbnb-related activities (guest check-in, grocery shopping for supplies, maintenance), you can deduct either the actual expenses (gas, oil, repairs) or use the standard mileage rate. For 2024, the standard mileage rate is approximately 67 cents per mile (verify the final official rate from the IRS at irs.gov). Keep a detailed mileage log!
• Airbnb Fees: The fees Airbnb charges you for using their platform 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. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed 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 help lower your overall tax liability.

Closing Tip for Iowa Residents

Navigating Airbnb taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. Finally, don’t hesitate to consult with a qualified tax professional (like myself!) here in Iowa to ensure you’re taking advantage of all applicable deductions and complying with all federal and state tax laws. The Iowa Department of Revenue website (tax.iowa.gov) is also a valuable resource.