Airbnb Host Taxes in New York - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in New York?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and New York State levels. The IRS considers Airbnb hosting a business activity, and New York State treats it similarly. 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).

New York State Requirements: New York has a graduated income tax system, meaning the tax rate 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 taxable income for New York State. This total income is then subject to the appropriate tax bracket. You'll report this income on Form IT-1040, New York State Income Tax Return. New York also has its own set of deductions and credits, so be sure to explore those as well.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for New York 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, and internet are deductible, again based on the percentage of time the property is rented. Keep detailed records!
• Cleaning & Maintenance: Costs associated with cleaning services, repairs, and general maintenance (e.g., painting, plumbing) are fully deductible.
• Mileage & Car Expenses: When you drive for Airbnb-related activities (e.g., delivering linens, meeting guests, shopping for supplies), 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 car expenses (gas, oil, repairs, insurance, depreciation) if it results in a larger deduction.
• Airbnb Fees: The fees Airbnb charges you are a deductible business expense.
• Software & Subscriptions: Costs for software used to manage your Airbnb (e.g., Smartbnb, Hostaway) or subscriptions to services that help with your hosting business 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 earnings over $400.

You'll calculate this tax on Schedule SE (Self-Employment Tax), which is filed along with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income, which can help reduce your overall tax liability.

Closing Tip for New York Residents

Navigating taxes as an Airbnb host can be complex, especially in a state like New York with its graduated income tax system. 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 (like myself!) can save you time, money, and potential headaches. Don't hesitate to reach out for personalized advice tailored to your specific Airbnb hosting situation.