Turo Host Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Louisiana?

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

Louisiana Specific Rules: Louisiana has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (like wages from a W-2 job) to determine your total taxable income for Louisiana. Louisiana will then apply the appropriate tax bracket to calculate your state income tax liability. You’ll file this information using Louisiana Form 540. It’s important to accurately report your income to avoid penalties and interest.

Top Tax Write-offs for Turo Hosts

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

• Mileage: For 2024, the standard mileage rate is approximately 67 cents per business mile driven for Turo-related activities (picking up/dropping off vehicles, inspections, etc.). Keep a detailed mileage log! You cannot use the standard mileage rate if you’ve previously claimed depreciation on the vehicle.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct actual vehicle expenses like gas, oil changes, repairs, maintenance, insurance, registration fees, and even a portion of the vehicle’s depreciation. This requires meticulous record-keeping.
• Cleaning & Detailing: Expenses for cleaning and detailing your vehicle to prepare it for renters are deductible.
• 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., accounting software, trip tracking apps) are deductible.

The 15.3% Self-Employment Tax Surprise

Many Turo hosts are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed individual, you’re responsible for both the employer and employee portions. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on earnings over $400. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which can lower your overall tax liability.

Closing Tip for Louisiana Residents

Navigating taxes as a Turo host can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. And, if you’re unsure about any aspect of your tax obligations, don’t hesitate to consult with a qualified tax professional – like myself – who is familiar with both federal and Louisiana tax laws. Proper planning and accurate reporting will help you avoid issues with the IRS and the Louisiana Department of Revenue and ensure you’re taking advantage of all available deductions.