Turo Host Taxes in Wyoming - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Wyoming?

Yes, even though Wyoming doesn't have a state income tax, your income earned as a Turo host is still subject to federal income tax. The IRS considers Turo hosting a business activity, meaning you'll report your earnings and expenses on Schedule C (Profit or Loss From Business) as part of your Form 1040. You'll calculate your net profit (income minus expenses) on Schedule C, and that net profit will then be added to your other income when you file your federal tax return.

Wyoming Specifics: Because Wyoming has no state income tax, you won’t need to file a state income tax return related to your Turo income. However, you are still responsible for paying federal income tax and self-employment tax on your profits.

Top Tax Write-offs for Turo Hosts

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven (this rate is subject to official IRS confirmation, but is accurate as of late 2024). Keep a detailed mileage log documenting the date, purpose (e.g., picking up/dropping off a guest), and miles driven for each trip.
• Vehicle Depreciation: Instead of taking mileage, you can deduct depreciation on your vehicle. This allows you to write off a portion of the vehicle's cost over several years. This is more complex than mileage, so consider consulting with a tax professional to determine the best method for your situation.
• Car Wash & Detailing: Expenses related to cleaning and maintaining your vehicle for rental purposes are deductible. Keep receipts for car washes, detailing services, and cleaning supplies.
• Turo Fees & Software: Any fees paid directly to Turo (e.g., commission fees) are deductible. Also, if you use any software or apps specifically for managing your Turo business (e.g., scheduling tools, expense trackers), those costs are deductible.

The 15.3% Self-Employment Tax Surprise

As a self-employed individual (which you are as a Turo host), you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is known as self-employment tax. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C. However, you only pay self-employment tax on profits exceeding $400. You'll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040. You do get to deduct one-half of your self-employment tax from your gross income.

Closing Tip for Wyoming Residents

Being a Turo host in Wyoming offers the benefit of no state income tax, but diligent record-keeping is crucial for maximizing your federal tax savings. Maintain detailed records of all income and expenses, especially mileage. Consider using accounting software or working with a qualified tax professional to ensure you're taking all eligible deductions and complying with IRS regulations. Happy hosting, and remember to plan ahead for tax season!