Turo Host Taxes in Vermont - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Vermont?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Vermont 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 calculates your net profit (income minus expenses). Even if you don’t expect a profit, you still need to file Schedule C to report all income and deductible expenses.

Vermont Specific Rules: Vermont has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Turo net profit (from Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for Vermont. Vermont then applies its graduated tax rates to that total income. You’ll use Vermont Form INC-100 to calculate your Vermont income tax liability. Vermont also requires you to pay estimated taxes quarterly if you expect to owe $500 or more in Vermont income tax for the year. More information can be found on the Vermont Department of Taxes website: https://tax.vermont.gov/

Top Tax Write-offs for Turo Hosts

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

• Mileage: You can deduct the business portion of your vehicle’s mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (verify the official IRS rate at https://www.irs.gov/newsroom/standard-mileage-rates-for-2024). Keep a detailed mileage log!
• Vehicle Expenses: If you choose not to use the standard mileage rate, you can deduct actual vehicle expenses like gas, oil changes, repairs, maintenance, tires, and insurance. You’ll need to track all of these costs carefully.
• Cleaning & Detailing: Expenses for cleaning and detailing your vehicle specifically for Turo rentals are deductible.
• Turo Fees & Software: The fees you pay to Turo, as well as any subscription costs for software used to manage your Turo business (e.g., scheduling apps, expense trackers) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you’re considered self-employed as a Turo host, 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 and 2.9% for Medicare) on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed with your Form 1040. Don't be alarmed when you see this amount – it’s a normal part of being self-employed. You do get to deduct one-half of your self-employment tax from your adjusted gross income, which can help lower your overall tax liability.

Closing Tip for Vermont Residents

Navigating taxes as a Turo host can be complex. Vermont’s graduated income tax system and quarterly estimated tax requirements add another layer of consideration. I strongly recommend keeping meticulous records of all your 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 Vermont tax laws. Proper planning can save you significant time and money during tax season.