Turo Host Taxes in Oregon - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Oregon?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Oregon 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 calculates your net profit (income minus expenses). Even if you don’t expect a profit, you still need to file Schedule C to report all income and deductible expenses.

Oregon Specific Rules: Oregon has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (like wages from a traditional job) to determine your total taxable income for Oregon. Oregon will then apply the appropriate tax bracket to calculate your state income tax liability. 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 Turo Hosts

Maximizing your deductions is key to minimizing your tax bill. Here are some common deductions for Turo hosts:

• Mileage: You can deduct the business portion of your vehicle’s mileage. 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! This is crucial if audited.
• Vehicle Expenses (Actual Expense Method): Instead of mileage, you can deduct actual expenses like gas, oil changes, repairs, maintenance, tires, and vehicle registration fees. You cannot deduct both mileage and actual expenses. Choose the method that results in the larger deduction.
• Cleaning & Detailing: The cost of cleaning and detailing your vehicle to prepare it for renters is a deductible expense.
• Turo Fees & Software: Fees paid to Turo, as well as the cost of any software or apps you use to manage your Turo business (e.g., accounting software, trip tracking apps) are deductible.

The 15.3% Self-Employment Tax Surprise

Many Turo hosts are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed individual, you’re responsible for both the employer and employee portions. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on earnings over $400. You also get to deduct one-half of your self-employment tax from your gross income on Form 1040, which can help reduce your overall tax liability.

Closing Tip for Oregon Residents

Navigating taxes as a Turo host can be complex. I strongly recommend keeping meticulous records of all your income and expenses 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 taking advantage of all available deductions and complying with both federal and Oregon state tax laws. Good luck with your Turo business, and happy filing!