Airbnb Host Taxes in Pennsylvania - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Pennsylvania?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Pennsylvania state levels. The IRS considers Airbnb hosting a business activity, and Pennsylvania treats it as self-employment income.

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 allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss. Keep meticulous records of all income and expenses.

Pennsylvania Specific Rules: Pennsylvania has a flat income tax rate of 3.07% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income and taxed at this flat rate. Pennsylvania also requires you to report your business income on a PA-40 Schedule C, mirroring the federal Schedule C.

Top Tax Write-offs for Airbnb Hosts

As an Airbnb host, you can significantly reduce your tax liability by claiming eligible deductions. Here are some key write-offs:

• 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 is typically calculated based on the percentage of the year the property is rented.
• Utilities: Expenses like electricity, gas, water, internet, and cable 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 (e.g., grocery shopping for supplies, transporting guests, cleaning appointments), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile. Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation) if it results in a larger deduction, but requires more detailed recordkeeping.
• Airbnb Fees: The fees Airbnb charges you for using their platform are a deductible business expense.
• Software & Subscriptions: Costs for property management software, smart home devices (locks, thermostats), or cleaning scheduling apps are deductible.

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. The combined rate is 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 bill.

Closing Tip for Pennsylvania Residents

Running an Airbnb in Pennsylvania can be a rewarding experience, but staying organized with your finances is crucial for a smooth tax season. Keep detailed records of all income and expenses, and consider using accounting software designed for self-employed individuals. Don't hesitate to consult with a qualified tax professional – like myself – if you have specific questions or need assistance with your tax return. Proactive tax planning can save you money and avoid potential issues with the IRS and the Pennsylvania Department of Revenue.