Turo Host Taxes in Maine - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Maine?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Maine 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 calculates your net profit (income minus expenses). Even if you don’t expect a profit, you still need to file Schedule C to report all income and deductible expenses.

Maine Specific Rules: Maine has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Turo net profit (from Schedule C) 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 calculate your state income tax liability. You'll likely need to make estimated tax payments throughout the year if your tax liability is over a certain amount – consult the Maine Revenue Services website for details on estimated payments.

Top Tax Write-offs for Turo Hosts

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

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use (verify the final official rate from the IRS). You’ll need to keep a detailed log of all miles driven for Turo-related activities (pickups, drop-offs, inspections, etc.). You cannot deduct commuting miles.
• Vehicle Depreciation: Instead of mileage, you can deduct depreciation. This allows you to write off a portion of the vehicle's cost over its useful life. This is more complex than mileage and often requires Form 4562. Consult with a tax professional to determine if depreciation is more beneficial for your situation.
• Cleaning & Maintenance: Expenses for cleaning, oil changes, tire rotations, repairs, and other vehicle maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees you pay to Turo, as well as the cost of any software or apps you use to manage your Turo business (e.g., scheduling tools, expense trackers) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you’re considered self-employed as a Turo 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 your net earnings from Schedule C. However, you only pay self-employment tax on earnings over $400. You’ll calculate this on Schedule SE (Self-Employment Tax) and file it with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income.

Closing Tip for Maine Residents

Navigating self-employment taxes can be tricky. As a Maine resident, remember to keep meticulous records of all your Turo income and expenses. Consider using accounting software or working with a qualified tax professional to ensure you’re taking all eligible deductions and complying with both federal and Maine state tax laws. Don't hesitate to consult the Maine Revenue Services website (https://www.maine.gov/revenue/) for the most up-to-date information and resources.