Airbnb Host Taxes in Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Airbnb Host income taxable in Virginia?

Yes, income earned as an Airbnb host is absolutely taxable, both at the federal and Virginia state levels. The IRS considers Airbnb hosting a business activity, meaning you’re generally 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. Schedule C allows you to deduct ordinary and necessary business expenses, reducing your taxable income. Keep meticulous records of all income and expenses.

Virginia Specific Rules: Virginia has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Airbnb profits (after federal adjustments and deductions) will be added to your other income sources (wages, investments, etc.) to determine your total Virginia taxable income. This total income is then subject to Virginia’s tax brackets. You’ll report your federal adjusted gross income (AGI) on Virginia Form 760, and then calculate your Virginia taxable income and tax liability.

Top Tax Write-offs for Airbnb Hosts

As an Airbnb host, you can significantly reduce your tax burden by claiming eligible deductions. Here are some key write-offs:

• 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 Airbnb rental. This is typically calculated based on the percentage of the year the property is rented.
• Utilities: Expenses like electricity, gas, water, internet, and cable are deductible, again based on the percentage of time the property is rented.
• Supplies & Consumables: Items provided for guests, such as toiletries (soap, shampoo), cleaning supplies, paper towels, linens, and even a welcome basket, are deductible.
• Mileage & Vehicle Expenses: When you use your vehicle for Airbnb-related activities (guest pick-ups, grocery shopping for supplies, cleaning supply runs), you can deduct mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (always verify the official IRS rate at IRS.gov). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation) if it results in a larger deduction.

The 15.3% Self-Employment Tax Surprise

Because Airbnb hosting is considered self-employment, 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 earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is filed along with your Form 1040. Don't be alarmed when you see this tax – it’s a normal part of being self-employed. You can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps to offset the impact.

Closing Tip for Virginia Residents

Navigating Airbnb taxes can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. And, if you're unsure about any aspect of your tax obligations, consulting with a qualified tax professional (like myself!) in Virginia is always a wise investment. We can help you maximize your deductions and ensure you’re compliant with both federal and Virginia tax laws.