Airbnb Host Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in South Carolina?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and South Carolina state levels. The IRS considers Airbnb hosting a business activity, meaning you’ll need to report your earnings and expenses.

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.

South Carolina Specific Rules: South Carolina has a graduated income tax system. This means the tax rate you pay increases as your taxable income rises. Your net profit from your Airbnb (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for South Carolina. You’ll then use the South Carolina tax brackets to calculate your state income tax liability. You'll file this information using South Carolina Form SC1040.

Top Tax Write-offs for Airbnb Hosts

As an Airbnb host, you're entitled to deduct many expenses that directly relate to your rental activity. Here are some key deductions:

• Mortgage Interest & Property Taxes: If you own the property, you can deduct the portion of your mortgage interest and property taxes that relate to the time the property is rented. If you rent out only a portion of your home, you’ll need to allocate these expenses based on the percentage of your home used for rental.
• Utilities: Expenses like electricity, gas, water, internet, and cable are deductible for the period the property is rented. Again, allocate if you live in the property and rent a portion.
• Cleaning & Maintenance: Costs associated with cleaning the property between guests, as well as repairs and maintenance (e.g., fixing a leaky faucet, painting) are deductible. Major improvements that increase the property's value are generally capitalized and depreciated over time.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (e.g., picking up guests, going to the property for cleaning/maintenance), you can deduct either the actual expenses (gas, oil, repairs, etc.) 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!
• Airbnb Fees: The fees Airbnb charges you are a deductible business expense.

The 15.3% Self-Employment Tax Surprise

Many Airbnb 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 self-employment.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is filed along with your Form 1040. The good news is you only pay self-employment tax on profits exceeding $400. You can also deduct one-half of your self-employment tax from your gross income.

Closing Tip for South Carolina Residents

Navigating Airbnb taxes can be complex. I strongly recommend keeping detailed 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 help ensure you're compliant with both federal and South Carolina tax laws and maximizing your deductions. Good luck with your Airbnb business, and happy hosting!