Turo Host Taxes in Oklahoma - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Oklahoma?

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

Oklahoma Specific Rules: Oklahoma has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Turo net profit (after deductions from Schedule C) will be added to your other income sources (wages, investments, etc.) to determine your overall taxable income and the applicable tax bracket. Oklahoma’s tax rates vary, so consult the Oklahoma Tax Commission website (www.ok.gov/tax) for the most current rates for the 2024 tax year (filing in 2025).

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the largest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven (verify the final official rate from the IRS – www.irs.gov). Keep a detailed mileage log documenting the date, purpose (e.g., picking up/dropping off a vehicle), and miles driven for each trip.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct actual vehicle expenses like gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. You cannot use both mileage and actual expenses; choose the method that yields the larger deduction.
• Cleaning & Maintenance Supplies: The cost of supplies used to clean and maintain your vehicle for Turo rentals (soap, wax, interior cleaners, air fresheners, etc.) are deductible.
• Turo Fees & Software: 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 called Self-Employment Tax and is currently 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 also filed with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income, which can lower your overall tax liability.

Closing Tip for Oklahoma Residents

Managing taxes as a Turo host can seem complex, but careful record-keeping is key. Maintain detailed 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 in Oklahoma – like myself – to ensure you're taking all eligible deductions and complying with all applicable tax laws. We can help you navigate the graduated tax system and maximize your tax savings.