Airbnb Host Taxes in Mississippi - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Mississippi?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Mississippi state levels. The IRS considers Airbnb hosting a business activity, meaning you’ll need to report your earnings and expenses.

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 allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss. Keep meticulous records of all income and expenses.

Mississippi Specific Rules: Mississippi has a flat income tax rate of 5% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and the 5% tax will be applied to the total. Mississippi also requires you to file a state income tax return (Form 82-101) to report this income.

Top Tax Write-offs for Airbnb Hosts

As an Airbnb host, you’re entitled to deduct many expenses that directly relate to your rental activity. Here are some key deductions:

• Mortgage Interest & Property Taxes: If you own the property, you can deduct the portion of your mortgage interest and property taxes that relate to the time the property is rented. If you rent a portion of your home, you'll need to allocate these expenses based on the percentage of your home used for rental.
• Utilities: Expenses like electricity, gas, water, internet, and cable are deductible, again allocating the portion used for the rental if it's part of your primary residence.
• Cleaning & Maintenance: Costs for cleaning services, repairs, and general maintenance (like lawn care) are fully deductible. Keep receipts!
• Mileage: The IRS allows you to deduct mileage for trips directly related to your Airbnb business. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS website: https://www.irs.gov/newsroom/standard-mileage-rates-for-2024). Keep a detailed mileage log including dates, destinations, and business purpose.
• Airbnb Fees: The fees Airbnb charges you are deductible as a business expense.

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). However, you only pay self-employment tax on your net earnings after deducting one-half of your self-employment tax from your gross income. You'll also only pay self-employment tax on profits exceeding $400.

Closing Tip for Mississippi Residents

Managing Airbnb income and taxes can seem complex, but with careful record-keeping and a good understanding of the rules, you can minimize your tax liability. Consider using accounting software designed for self-employed individuals to help track income and expenses. As a Mississippi resident, remember to factor in the 5% state income tax when planning your finances. If you have a particularly complex situation, or are unsure about any aspect of your taxes, consulting with a qualified tax professional is always a wise investment.