Airbnb Host Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Louisiana?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Louisiana state levels. The IRS considers Airbnb hosting a business activity, and you are required to report your earnings as self-employment income.

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 calculates your net profit (income minus expenses). Even if you only host occasionally, the IRS generally considers it a business if your primary intention is to make a profit.

Louisiana Specific Rules: Louisiana has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your net profit from your Airbnb (as calculated on Schedule C) will be added to your other income (wages, investments, etc.) and taxed according to the 2024 Louisiana tax brackets. These brackets are subject to change, so it’s important to consult the Louisiana Department of Revenue website (www.revenue.louisiana.gov) for the most up-to-date information when filing in 2025. You will file this income on Louisiana Form 540.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common deductions for Louisiana 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 the property between guests, as well as repairs and maintenance (e.g., fixing a leaky faucet, painting) are deductible. Major improvements that increase the property’s value are generally capitalized and depreciated over time (see below).
• Mileage & Vehicle Expenses: When you drive for Airbnb-related activities (e.g., delivering linens, meeting guests), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation) if it results in a larger deduction.
• Software & Fees: Airbnb host fees, and the cost of any software used to manage your listings (e.g., Smartbnb, Hostaway) are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

Because you’re considered self-employed, 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 over $400. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Closing Tip for Louisiana Residents

Running an Airbnb can be a rewarding experience, but staying on top of your tax obligations is crucial. Keep meticulous records of all your 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 both federal and Louisiana tax laws. Louisiana’s tax laws can be complex, and professional guidance can save you money and potential headaches.