Turo Host Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in North Dakota?

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

North Dakota Requirements: North Dakota has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Turo net profit (after Schedule C deductions) will be added to your other income (wages, investments, etc.) and taxed according to the 2024 North Dakota tax brackets. You’ll file this income on Form ND-1, North Dakota Income Tax Return. Be sure to check the official North Dakota Tax Department website for the most up-to-date brackets and forms: https://www.nd.gov/tax/

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. Keep a detailed log of all miles driven for Turo-related activities (picking up/dropping off guests, maintenance, cleaning supplies). You cannot deduct commuting miles.
• Vehicle Depreciation: Instead of claiming mileage, you can deduct depreciation on your vehicle. This allows you to write off a portion of the vehicle's cost over several years. This is more complex than mileage, so consider consulting with a tax professional.
• Cleaning & Maintenance: Expenses for cleaning supplies, car washes, oil changes, tire rotations, and other maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees Turo charges you, as well as any subscription costs for software used to manage your listings (e.g., pricing tools, accounting software), are deductible business expenses.

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 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings. However, you only pay this on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed 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.

Closing Tip for North Dakota Residents

Navigating self-employment taxes can be tricky. As a Turo host in North Dakota, diligent record-keeping is crucial. Maintain detailed logs of mileage, expenses, and income throughout the year. Consider using accounting software designed for self-employed individuals. Finally, don’t hesitate to consult with a qualified tax professional – like myself – to ensure you’re maximizing your deductions and complying with all federal and North Dakota tax laws. Good luck with your Turo business!