Airbnb Host Taxes in Missouri - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Missouri?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Missouri state levels. The IRS considers Airbnb hosting a business activity, and you are required 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. Even if you only host occasionally, the IRS generally considers it a business if your primary intent is to make a profit.

Missouri Specific Rules: Missouri has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your net profit from your Airbnb (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) and taxed according to the Missouri income tax brackets for the 2024 tax year (filing in 2025). You’ll report this income on Missouri Form MO-1040. Missouri also allows for many of the same deductions as the federal government, but it’s crucial to understand any differences – consulting a tax professional is always recommended.

Top Tax Write-offs for 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, internet, and cable are deductible, again based on the percentage of time the property is rented. Keep detailed records!
• Cleaning & Maintenance: Costs associated with cleaning the property between guests, as well as repairs and maintenance (e.g., fixing a leaky faucet, painting) are deductible.
• Mileage & Vehicle Expenses: When you drive for Airbnb-related activities (e.g., delivering linens, meeting guests), you can deduct mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (verify the official IRS rate at IRS.gov). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.
• Airbnb Fees & Software: The fees Airbnb charges you, as well as the cost of any software you use to manage your listings (e.g., Smartbnb, Hostaway) 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. It’s currently 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Airbnb exceeding $400.

You’ll calculate this on Schedule SE (Self-Employment Tax) and file it 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 lower your overall tax liability.

Closing Tip for Missouri Residents

Navigating Airbnb taxes can be complex. Missouri’s graduated income tax system adds another layer to consider. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. Finally, consulting with a qualified tax professional in Missouri, like myself, can ensure you’re taking all eligible deductions and complying with all applicable tax laws, maximizing your savings and minimizing potential issues with the IRS or the Missouri Department of Revenue.