Turo Host Taxes in New York - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in New York?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and New York State levels. The IRS considers Turo hosting a business activity, meaning you’re considered self-employed.

Federal Taxes: 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 calculates your net profit (income minus expenses). You'll need to keep detailed records of all income received from Turo and all related expenses.

New York State Taxes: New York has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Turo net profit (from Schedule C) will be added to your other income (W-2 wages, investment income, etc.) to determine your total taxable income for New York. New York will then apply the appropriate tax rate based on your income bracket. You'll report this income on Form IT-1040. Be prepared for potential state and local taxes in addition to federal income tax.

Top Tax Write-offs for Turo Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Turo hosts in New York:

• Mileage: You can deduct the business use of your vehicle. For 2024, the standard mileage rate is approximately 67 cents per mile (always verify the official IRS rate at IRS.gov). You must keep a detailed mileage log documenting business miles driven (e.g., trips for rentals, car washes related to rentals, picking up/dropping off renters).
• Car Expenses (Alternative to Mileage): Instead of the standard mileage rate, you can deduct actual car expenses. This includes costs like gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. If you choose this method, you'll need to keep detailed receipts for all expenses.
• Cleaning & Maintenance: Expenses related to cleaning, detailing, and maintaining your vehicle for rental purposes are deductible. This includes supplies like car wash soap, interior cleaners, and the cost of professional detailing services.
• Turo Fees & Software: The fees you pay to Turo (commission) are deductible. Also, any software or subscription services you use to manage your Turo business (e.g., accounting software, scheduling apps) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, 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. 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 adjusted gross income on Form 1040, which helps reduce your overall income tax liability.

Closing Tip for New York Residents

Navigating taxes as a Turo host can be complex, especially with New York’s 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. Finally, consulting with a qualified tax professional (like myself!) can ensure you’re taking all eligible deductions and complying with all federal and New York State tax laws. Don't hesitate to reach out for personalized advice – proactive tax planning can save you significant money and stress in the long run.