Turo Host Taxes in Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Virginia?

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

Virginia Specific Rules: Virginia has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Turo net profit (after deducting expenses on Schedule C) will be added to your other income (wages, investments, etc.) to determine your total taxable income for Virginia. Virginia’s tax rates for the 2024 tax year (filing in 2025) will be applied to this total income. You’ll file this information on Virginia Form 540. It’s important to note that Virginia generally follows federal adjusted gross income (AGI) as a starting point, but there can be differences, so accurate record-keeping is crucial.

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the largest deduction! For 2024, the standard mileage rate is approximately 67 cents per business mile driven (confirm the exact rate on the IRS website: https://www.irs.gov/newsroom/standard-mileage-rates-for-2024). Keep a detailed mileage log documenting the date, purpose (Turo trip), and miles driven for each trip.
• Vehicle Depreciation: You can deduct a portion of the cost of your vehicle each year through depreciation. There are different methods (e.g., standard mileage vs. actual expenses), and the best method depends on your specific situation. Consulting with a tax professional is recommended to determine the most advantageous approach.
• Car Wash & Detailing: Expenses related to cleaning and maintaining your vehicle for Turo rentals are deductible. Keep receipts for car washes, detailing services, and cleaning supplies.
• Turo Fees & Software: Any fees paid directly 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

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 known as self-employment tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You’ll calculate this tax on Schedule SE (Self-Employment Tax).

The good news is you get to deduct one-half of your self-employment tax from your adjusted gross income (AGI) on Form 1040, which can help reduce your overall tax liability. However, be prepared for this additional tax obligation, especially if you’re not used to it from traditional employment.

Closing Tip for Virginia Residents

Navigating taxes as a Turo host can be complex. Virginia’s graduated income tax system adds another layer to consider. I strongly recommend keeping meticulous 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, don’t hesitate to consult with a qualified tax professional in Virginia – it can save you time, money, and potential headaches in the long run.