Turo Host Taxes in Pennsylvania - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Pennsylvania?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Pennsylvania 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. Keep meticulous records of all income and expenses throughout the year.

Pennsylvania Requirements: 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 file a PA-1040 form to report your income.

Top Tax Write-offs for Turo Hosts

As a Turo host, you're entitled to deduct expenses that are “ordinary and necessary” for your business. Here are some key deductions:

• Mileage: This is a big one! For 2024, the standard mileage rate is 67 cents per mile for business use (verify the final official rate from the IRS). You can deduct this amount for every mile driven while your car was rented. Keep a detailed mileage log – date, starting/ending odometer readings, and purpose of the trip (rental related).
• Vehicle Depreciation: Instead of mileage, you can deduct depreciation. This allows you to write off a portion of the vehicle's cost over its useful life. This is more complex than mileage and often requires Form 4562. Consult with a tax professional to determine if depreciation is more beneficial for your situation.
• Cleaning & Maintenance: Expenses for cleaning, oil changes, tire rotations, repairs, and other maintenance directly related to preparing the vehicle for rental are deductible.
• Turo Fees & Software: The fees you pay to Turo, as well as any subscription costs for software used to manage your Turo business (e.g., scheduling apps, expense trackers) 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.

Closing Tip for Pennsylvania Residents

Managing taxes as a Turo host can be complex. While this guide provides a good overview, it’s always best to maintain accurate records throughout the year and consider consulting with a qualified tax professional, especially if your Turo income is significant or your tax situation is complicated. Proper planning and documentation will ensure you’re taking all eligible deductions and complying with both federal and Pennsylvania tax laws. Good luck, and happy hosting!