Turo Host Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Utah?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Utah 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.

Utah Specific Rules: Utah has a flat income tax rate of 4.85% for 2024. Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 4.85% Utah income tax rate. Utah follows federal adjusted gross income (AGI) as a starting point, so your Schedule C profit directly impacts your Utah tax liability. You'll file Form TC-1040, Utah Individual Income Tax Return.

Top Tax Write-offs for Turo Hosts

Maximizing your deductions is key to minimizing your tax bill. Here are some common write-offs for Turo hosts in Utah:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven for Turo-related activities (picking up/dropping off vehicles, inspections, etc.). You must keep a detailed mileage log with dates, destinations, and business purpose.
• Vehicle Depreciation: Instead of taking the standard mileage rate, you can deduct depreciation on your vehicle. This allows you to write off a portion of the vehicle's cost over its useful life. This is more complex and often requires professional assistance.
• Cleaning & Maintenance: Expenses for cleaning, detailing, oil changes, tire rotations, and other vehicle maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees you pay to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., scheduling tools, expense trackers) are deductible.

The 15.3% Self-Employment Tax Surprise

As a Turo host, you're considered self-employed. This means you're responsible for 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 from Schedule C.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net profit. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Utah Residents

Navigating self-employment taxes can be complex. As a Utah resident, remember to keep excellent records of all your Turo income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Utah tax laws. Proactive tax planning can save you significant money and stress during tax season.