Turo Host Taxes in Mississippi - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Mississippi?

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

Federal Requirements: You will report your Turo income and expenses on Schedule C (Profit or Loss From Business) of Form 1040. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss. This net profit is then added to your other income when calculating your Adjusted Gross Income (AGI).

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 this total taxable income will be subject to the 5% Mississippi income tax rate. Mississippi also requires you to file a state income tax return (Form 82-101) to report this income.

Top Tax Write-offs for Turo Hosts

As a Turo host, you can significantly reduce your tax liability by claiming eligible business deductions. Here are some key write-offs:

• Mileage: You can deduct the business use of your vehicle. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS at IRS.gov). Keep a detailed mileage log documenting each rental trip.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct actual vehicle expenses like gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. Choosing between mileage and actual expenses depends on which results in a larger deduction – careful calculation is key.
• Cleaning & Maintenance Supplies: The cost of supplies used to clean and maintain your vehicle for Turo rentals (e.g., car wash soap, interior cleaners, air fresheners) are deductible.
• Turo Fees & Software: Fees paid to Turo, as well as the cost of any software or apps used 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.

You’ll calculate this on Schedule SE (Self-Employment Tax) of Form 1040. 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 profits exceeding $400. The good news is you can deduct one-half of your self-employment tax from your gross income.

Closing Tip for Mississippi Residents

Managing taxes as a Turo host can be complex. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional, especially given Mississippi’s flat tax rate – maximizing your deductions is crucial. Don't hesitate to seek professional guidance to ensure you're compliant with both federal and Mississippi tax laws and taking advantage of all available tax benefits.