Airbnb Host Taxes in Oregon - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Oregon?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Oregon state level. The IRS considers Airbnb hosting a business activity, meaning you’re generally required to report your earnings and pay taxes on any profits.

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. This schedule calculates your net profit (income minus expenses). Even if you only host occasionally, consistent and regular activity will likely be considered a business.

Oregon Specific Rules: Oregon has a graduated income tax system. This means the tax rate you pay increases as your taxable income rises. Your Airbnb net profit (from Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for Oregon. This total income is then subject to the appropriate Oregon tax bracket. You’ll use Form OR-40 to file your Oregon state income tax return. Be sure to check the current Oregon tax brackets for 2024 income (filing in 2025) on the Oregon Department of Revenue website (oregon.gov/dor).

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Oregon 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 rental. This requires calculating the percentage of the year the property was rented.
• Utilities: Expenses like electricity, gas, water, internet, and trash removal are deductible, again based on the percentage of time the property is rented.
• Supplies & Consumables: Items provided for guests, such as toiletries (soap, shampoo), cleaning supplies, paper towels, linens, and even a welcome basket, are deductible.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (guest pick-up/drop-off, grocery shopping for supplies, cleaning), you can deduct either the actual expenses (gas, oil, repairs, depreciation) or the standard mileage rate. For 2024, the standard mileage rate is approximately 67 cents per mile (verify the official IRS rate at irs.gov). Keep a detailed mileage log!

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.

You’ll calculate this on Schedule SE (Self-Employment Tax). The combined rate is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You only pay self-employment tax on profits exceeding $400. 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 Oregon Residents

Navigating Airbnb taxes 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. 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 situation in Oregon.