Turo Host Taxes in New Mexico - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in New Mexico?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and New Mexico 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.

New Mexico Requirements: New Mexico has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Turo net profit (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) and taxed according to the New Mexico income tax brackets for the 2024 tax year (filing in 2025). You’ll file this income on Form W-4 and related schedules with the New Mexico Taxation and Revenue Department. Be sure to check the current New Mexico tax brackets when filing, as they can change annually.

Top Tax Write-offs for Turo Hosts

• Mileage: This is a big one! You can deduct the business portion of your vehicle’s mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS – IRS Standard Mileage Rates). Keep a detailed log of all miles driven for Turo-related activities (picking up/dropping off guests, cleaning, maintenance).
• Vehicle Expenses (Actual Expense Method): Instead of mileage, you can deduct actual expenses like gas, oil changes, repairs, tires, insurance, registration fees, and depreciation. This requires more record-keeping but can sometimes result in a larger deduction. You cannot use both methods in the same year.
• Cleaning & Maintenance Supplies: The cost of supplies used to clean and maintain your vehicle for Turo rentals (soap, wax, air fresheners, detailing products) are deductible.
• Turo Fees & Software: Any fees paid directly to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., accounting software, scheduling tools) 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 combined tax is known as self-employment tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare).

You’ll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net earnings after deducting one-half of your self-employment tax from your gross income. Also, self-employment tax applies only to earnings over $400.

Closing Tip for New Mexico Residents

Navigating 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 designed for self-employed individuals. And, if you're unsure about any aspect of your tax obligations, consulting with a qualified tax professional in New Mexico is always a wise investment. Good luck, and happy hosting!