Airbnb Host Taxes in Maine - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Maine?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Maine state levels. The IRS considers Airbnb hosting a business activity, meaning you’re generally required to report your earnings and pay taxes on any profits.

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

Maine Specific Rules: Maine has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Airbnb net profit (after Schedule C deductions) will be added to your other income (wages, investments, etc.) and taxed according to Maine’s tax brackets for the 2024 tax year (filing in 2025). Maine also requires you to file a Maine Income Tax Return (Form 1040-ME) to report this income. Keep in mind Maine’s tax rates and brackets can change annually, so always refer to the Maine Revenue Services website for the most up-to-date information.

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 rental. If you rent your entire home for 14 days or less, these deductions are limited.
• Utilities: Expenses like electricity, gas, water, and internet are deductible, but only for the portion of the year the property is rented. You’ll need to allocate these costs based on the percentage of time the property is used for rental versus personal use.
• 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 business expenses.
• 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 approximately 67 cents per mile (verify the official IRS rate at IRS.gov). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.
• Airbnb Fees & Software: Fees paid to Airbnb and the cost of any software used to manage your listings (e.g., Smartbnb, Hostaway) are deductible.

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. 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 exceeding $400. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040.

Closing Tip for Maine Residents

Managing 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. As a Maine resident, remember to factor in your state income tax obligations and stay updated on any changes to Maine’s tax laws. Don't hesitate to consult with a qualified tax professional – like myself – to ensure you’re maximizing your deductions and complying with all applicable regulations.