Airbnb Host Taxes in Massachusetts - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Massachusetts?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Massachusetts state levels. The IRS considers Airbnb hosting a business activity, meaning you’re 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. This schedule calculates your net profit (income minus expenses). Even if you only host occasionally, this income is generally taxable.

Massachusetts Specific Rules: Massachusetts has a flat income tax rate of 5.0% for the 2024 tax year (filing in 2025). This means all of your net profit from your Airbnb activity, after federal adjustments, will be subject to this 5.0% tax. Massachusetts also requires you to file a state income tax return (Form 1) to report this income. Massachusetts generally follows federal rules regarding deductions, but it’s crucial to verify any specific state limitations.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Massachusetts 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. This requires calculating the percentage of the year the property was rented.
• Utilities: Expenses like electricity, gas, water, and internet are deductible, again based on the percentage of time the property is rented. Keep detailed records!
• Cleaning & Maintenance: Costs associated with cleaning services, repairs, and general maintenance (e.g., lawn care, snow removal) are deductible.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (e.g., picking up guests, shopping for supplies), you can deduct either the actual expenses (gas, oil, repairs, etc.) or the standard mileage rate. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Keep a detailed mileage log!
• Airbnb Fees: The fees Airbnb charges you are a deductible expense.
• Supplies: Costs for items provided to guests (toiletries, linens, paper products) 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 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 bill.

Closing Tip for Massachusetts Residents

Navigating Airbnb taxes can be complex. It’s highly recommended to maintain meticulous records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. As a Massachusetts resident, remember to factor in the state’s 5.0% flat income tax when estimating your tax liability. If you have a particularly complex situation, or are unsure about any aspect of your taxes, consulting with a qualified tax professional (like myself!) is always a wise investment.