Turo Host Taxes in Maryland - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Maryland?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Maryland 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). You'll need to track all income received through the Turo platform, as well as all related business expenses.

Maryland Specific Rules: Maryland has a graduated income tax system, meaning the tax rate increases as your income increases. Your Turo net profit (from Schedule C) will be added to your other income and taxed accordingly. Furthermore, Maryland also levies a local income tax, which varies by county and city. You’ll report your income on Maryland Form 502, and potentially local forms depending on where you live. It’s crucial to accurately calculate both state and local taxes owed on your Turo earnings.

Top Tax Write-offs for Turo Hosts

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

• Mileage: You can deduct the business portion of your vehicle’s mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (always verify the official IRS rate at IRS.gov). Keep a detailed mileage log!
• Vehicle Expenses: If you choose not to use the standard mileage rate, you can deduct actual vehicle expenses. This includes costs like gas, oil changes, repairs, maintenance, tires, and vehicle registration fees. You'll need to calculate the business percentage of these expenses based on the percentage of time your vehicle is used for Turo versus personal use.
• 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 any software or subscription costs directly related to managing your Turo business (e.g., accounting software, scheduling tools) 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 combined tax is known as self-employment tax and is currently 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 bill.

Closing Tip for Maryland Residents

Navigating taxes as a Turo host can be complex, especially with Maryland’s graduated income tax and local tax requirements. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. If you’re unsure about any aspect of your tax obligations, consulting with a qualified tax professional (like myself!) is always a wise investment. Don't hesitate to reach out for personalized guidance to ensure you're compliant and maximizing your deductions.