Airbnb Host Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Nebraska?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Nebraska state levels. The IRS considers Airbnb hosting a business activity, and Nebraska follows suit. You are essentially running a small business, even if it's part-time.

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. Schedule C 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).

Nebraska Specific Rules: Nebraska has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Airbnb net profit (from Schedule C) will be added to your other income sources (wages, investments, etc.) to determine your total Nebraska taxable income. This total income is then subject to Nebraska’s graduated tax brackets. You’ll use Form NE 1040 to file your Nebraska state income tax return. Be sure to check the current Nebraska tax brackets for 2024 (filing in 2025) on the Nebraska Department of Revenue website (revenue.nebraska.gov) to understand your tax liability.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax bill. Here are some common deductions for Nebraska 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.
• 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. Major improvements that increase the property's value are generally depreciated over time, not deducted immediately.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (e.g., picking up guests, going to the store 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 approximately 67 cents per mile (verify the official IRS rate at irs.gov). Keep a detailed mileage log!
• Airbnb Fees: The fees Airbnb charges you are a deductible business expense.
• Software & Subscriptions: Costs for software used to manage your Airbnb business (e.g., smart home devices, scheduling tools) 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. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C that exceed $400.

You'll calculate this tax on Schedule SE (Self-Employment Tax). Don't be alarmed when you see this amount – it's a normal part of being self-employed. You can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Nebraska Residents

Running an Airbnb in Nebraska can be a rewarding experience, but staying organized with your income and expenses is crucial for tax time. Consider using accounting software designed for self-employed individuals to track your transactions throughout the year. The Nebraska Department of Revenue website (revenue.nebraska.gov) is an excellent resource for state-specific tax information. If you find yourself overwhelmed, don’t hesitate to consult with a qualified tax professional – like myself – to ensure you’re maximizing your deductions and complying with all applicable tax laws.