Turo Host Taxes in Ohio - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Ohio?

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

Ohio Specific Rules: Ohio has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Turo net profit (from Schedule C) will be added to your other income (wages, investments, etc.) to determine your overall Ohio taxable income. You’ll then use the Ohio income tax brackets to calculate your state tax liability. You'll file this information using Ohio Form IT 1040. Be sure to check the current Ohio tax brackets for the 2024 tax year (filing in 2025) as they are subject to change.

Top Tax Write-offs for Turo Hosts

• Mileage: This is a big one! For the 2024 tax year, 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 vehicles, maintenance, cleaning, etc.). You must choose between standard mileage and actual expenses – you can’t mix and match.
• Vehicle Depreciation: You can deduct a portion of your vehicle’s cost each year as depreciation. There are several methods (straight-line, accelerated), and the best option depends on your specific situation. Section 179 deduction may be available, allowing for a larger upfront deduction, but has limitations.
• Car Wash & Detailing: Expenses for cleaning and detailing your vehicle specifically for Turo rentals are deductible. Keep receipts!
• 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, trip tracking apps) 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 tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings from Schedule C. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which can lower your overall tax bill.

Closing Tip for Ohio 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. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Ohio tax laws. Proper planning can save you significant money and stress during tax season.