Airbnb Host Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Utah?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Utah state levels. The IRS considers Airbnb hosting a business activity, meaning you’re required to report your earnings and pay taxes on any profits.

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.

Utah Specific Rules: Utah has a flat income tax rate of 4.85% for 2024. This means your net profit from your Airbnb (after all allowable deductions on Schedule C) will be subject to this flat rate. Utah also requires you to file a state income tax return (Form TC-1040) to report this income. Because Utah’s tax system is relatively straightforward with a flat rate, the focus is on accurately calculating your federal taxable income on Schedule C, as that figure flows directly to your Utah return.

Top Tax Write-offs for Airbnb Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common deductions for Airbnb hosts:

• 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 rental. 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 trash removal are deductible. Similar to mortgage interest, allocate these costs if you rent out a portion of your home.
• Cleaning & Maintenance: Costs associated with cleaning services, repairs, and general maintenance of the rental property are deductible. This includes things like laundry, supplies, and handyman services.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (e.g., picking up guests, going to the store for supplies), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.
• Airbnb Fees: The fees Airbnb charges you for using their platform 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 as an independent contractor (which you are as an Airbnb host), you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% – 12.4% for Social Security and 2.9% for Medicare – on your net earnings exceeding $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax) and file it with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income, which can help reduce your overall tax liability.

Closing Tip for Utah Residents

Running an Airbnb in Utah can be a rewarding experience, but staying on top of your tax obligations is crucial. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals to simplify the process. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with all applicable tax laws. Proper planning can save you significant time and money during tax season.