Turo Host Taxes in Tennessee - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Tennessee?

Yes, income earned as a Turo host is taxable at the federal level. You’ll report your Turo earnings and expenses on Schedule C (Profit or Loss From Business) of Form 1040. This form is used to calculate the profit or loss from your Turo business. You'll need to track all income received from Turo rentals, as well as all related expenses (more on those below!).

Fortunately, Tennessee is unique in that it has no state income tax. This means you will not owe income tax to the state of Tennessee on your Turo earnings. However, you are still responsible for federal income and self-employment taxes.

Top Tax Write-offs for Turo Hosts

As a Turo host, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• Mileage: For 2024, the standard mileage rate is approximately 67 cents per mile for business use. You can deduct this amount for miles driven while your car was rented, and for miles driven for services directly related to your Turo business (e.g., cleaning, maintenance). Keep a detailed mileage log!
• Cleaning & Maintenance: Expenses for cleaning, detailing, oil changes, tire rotations, and other maintenance performed on your vehicle to keep it in rentable condition are deductible.
• Insurance: The portion of your car insurance premium directly attributable to the period your car was available for rent on Turo is deductible. This can be tricky to calculate, so consider keeping detailed records.
• Turo Fees & Software: Fees paid to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., accounting software, scheduling tools) are deductible.

The 15.3% Self-Employment Tax Surprise

Many Turo hosts are surprised to learn about self-employment tax. When you work as an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual (like a Turo host), you are responsible for both the employer and employee portions. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare).

You’ll calculate this tax on Schedule SE (Self-Employment Tax) of Form 1040. The good news is you only pay self-employment tax on your profit (income minus expenses). Also, self-employment tax is only due on earnings over $400.

Closing Tip for Tennessee Residents

While Tennessee offers the benefit of no state income tax, diligent record-keeping is crucial for maximizing your federal deductions and accurately calculating your self-employment tax. Consider using accounting software or working with a tax professional to ensure you’re taking advantage of all available tax benefits. Don't hesitate to consult the IRS website (irs.gov) for the most up-to-date information and forms.