Turo Host Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in South Carolina?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and South Carolina state levels. The IRS considers Turo hosting a business activity, meaning you’re considered self-employed.

Federal Taxes: 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). It’s crucial to keep detailed records of all income and expenses related to your Turo business.

South Carolina Taxes: South Carolina has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Turo net profit (as calculated on Schedule C) will be added to your other income, and then taxed according to the South Carolina tax brackets for the 2024 tax year (filing in 2025). You’ll use South Carolina Form SC1040 to calculate your state income tax liability. The SC Department of Revenue website (dor.sc.gov) will have the most up-to-date bracket information.

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven (this is subject to official IRS confirmation, but is the current estimate). You must keep a detailed mileage log documenting the date, purpose (Turo rental related), and miles driven for each trip. You cannot use the standard mileage rate if you’ve previously claimed depreciation on the vehicle.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct actual vehicle expenses like gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. You’ll need to keep receipts for all of these. Choosing between mileage and actual expenses depends on which results in a larger deduction – calculate both ways!
• Cleaning & Maintenance Supplies: The cost of supplies used to clean and maintain your vehicle for Turo rentals (e.g., car wash soap, interior cleaners, air fresheners) are deductible.
• Turo Fees & Software: Any fees paid directly to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., accounting software, trip tracking apps) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you’re self-employed, you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called 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 on Schedule SE (Self-Employment Tax).

The good news is you only pay self-employment tax on 92.35% of your net profit from Schedule C. You also get to deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for South Carolina Residents

Navigating self-employment taxes can be complex. As a Turo host in South Carolina, diligent record-keeping is your best friend. Keep all receipts, mileage logs, and income statements organized throughout the year. Consider consulting with a qualified tax professional (like myself!) to ensure you’re taking all eligible deductions and complying with both federal and South Carolina tax laws. Don't hesitate to seek professional guidance – it can save you money and headaches in the long run.