Turo Host Taxes in Montana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Montana?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Montana 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 allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss.

Montana Specific Rules: Montana has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your net profit from Schedule C will be added to your other income (wages, investments, etc.) and taxed according to the Montana income tax brackets for the 2024 tax year (filing in 2025). You’ll file this information on Montana Form 17, Individual Income Tax Return. Montana also allows for itemized deductions, which may further reduce your taxable income. Be sure to check the current Montana Department of Revenue website for the most up-to-date tax brackets and forms.

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is approximately 67 cents per mile for business use (verify the official IRS rate at IRS.gov). Keep a detailed log of all miles driven for Turo-related activities (picking up/dropping off vehicles, maintenance, cleaning, etc.).
• Cleaning & Maintenance: Expenses for cleaning supplies, detailing, oil changes, tire rotations, and other vehicle maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees you pay to Turo itself (commission) are deductible. Also, any subscription costs for software used to manage your Turo business (scheduling apps, accounting software) are deductible.
• Insurance Costs: The portion of your vehicle insurance premium directly attributable to the period your vehicle was available for rent on Turo is deductible. This can be tricky to calculate, so consider consulting with a tax professional.

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 called 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 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 Montana Residents

Navigating self-employment taxes can be complex. As a Montana resident, remember to factor in your state’s graduated income tax rates when estimating your tax liability. Maintaining meticulous records of your income and expenses throughout the year is crucial. Consider using accounting software or working with a qualified tax professional to ensure you’re taking all eligible deductions and complying with both federal and Montana tax laws. Don't hesitate to consult the Montana Department of Revenue website (revenue.mt.gov) for the latest information and resources.