Chapter 15

Airbnb Taxes for Hosts

Last updated: July 2025

Nobody likes dealing with the bureaucracy of taxes. However, understanding and managing your taxes as an Airbnb host is critical for the success of your business.

As a short-term rental host on Airbnb, you’re essentially running a small business. Just like any other business, you’re required by law to pay certain taxes from renting out your property. In this guide, we’ll discuss everything you need to know about Airbnb taxes, including what they are, how to file them, and tips for maximizing deductions.

Disclaimer: Lodgify is an Airbnb Preferred+ Software Partner. This guide, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.

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What taxes do Airbnb hosts have to pay?

When renting out your property on Airbnb, there are several types of taxes you may be responsible for. In general, hosts can expect to have 24-28% of their income withheld for taxes. However, it can be more.

Income tax

Airbnb earnings are considered taxable income by the government. You’ll need to report this income when filing taxes. Hosts may also be required to pay federal, state, and local income taxes based on the location of their rental and their total earnings.

Occupancy tax (aka transient tax or lodging tax)

The occupancy tax is often imposed on short-term stays and is commonly required by cities, counties, or states to operate legal short-term rentals. Airbnb collects and remits this tax on behalf of hosts in certain locations. However, in some cases, hosts are required to handle this tax themselves.

Property tax

You’ll likely be subject to property taxes. Depending on your specific location, using a property for short-term rentals may impact the tax rate or classification of the property.

Sales tax

Some regions require hosts to collect sales tax on the rental amount. Like occupancy taxes, Airbnb may sometimes handle sales tax collection and remittance, but this varies based on location.

Self-employment tax

For hosts in the United States, income earned through Airbnb may be classified as self-employment income. This means you’ll need to consider additional taxes, such as social security and Medicare contributions.

Value-added tax or goods and services tax

In some countries, particularly in Europe, Airbnb hosts may also need to pay value-added tax (VAT) or goods and services tax (GST) on the income earned through their rental property. These taxes are usually calculated as a percentage of the total rental amount.

When don’t Airbnb hosts have to pay taxes?

Airbnb hosts may not have to pay taxes in certain circumstances, such as when they are renting out their primary residence for less than 14 days in a year. This is known as the “Master’s Exception,” and also requires that the host use the property themself for 14 days or more each year.

Common tax deductions for Airbnb hosts

Fully understanding how many potential tax deductions are available to you can help lower the amount of taxes you’re paying. Below are some of the most common tax deductions available to Airbnb hosts:

Please note that it’s best to always consult a tax professional to ensure you’re claiming deductions accurately and in compliance with tax regulations.

Where to find Airbnb earnings for tax purposes

You’ll find your Airbnb earnings for tax return purposes on your owner dashboard, where you’ll find most of the tools to advertise and list your vacation rental properties.

Go to your transaction history, located on your dashboard. If you’re a U.S. user, you can also use the earnings summary for the previous tax year. This is a tax form that is required to be handed out to all U.S. residents who are using Airbnb for their properties.

Paying taxes as an Airbnb Experience host

If you are offering Airbnb Experiences, you still need to tax them according to the area in which you’re providing them. Generally, a VAT is provided, and a percentage of taxes is also added to the cost of the Experience for the guests.

These tax amounts can then be tallied up in income taxes and paid at the end of the year. For those that are in the U.S., sales taxes will only be added to the items that are being sold and not the services that you are providing, unless you so choose to tax them.

How to pay your taxes as an Airbnb host

Airbnb automatically collects and remits certain taxes on behalf of hosts in many locations, depending on local regulations. These may include occupancy, lodging, or transient rental taxes, which are added to the guest’s total price and remitted directly to the appropriate tax authorities.

This simplifies tax compliance for hosts, who don’t need to calculate or submit these specific taxes. However, Airbnb’s tax policies vary by country, state, and municipality, so it’s essential to check what applies in your area.

In some cases, Airbnb does not collect or remit taxes for your listings. In these instances, you’re responsible for understanding local tax laws and managing tax calculations, collections, and remittances yourself. Accounting software or a tax professional can help ensure compliance and avoid legal issues.

To stay compliant, we recommend working with a tax professional familiar with Airbnb taxes. Their expertise is especially helpful when managing vacation rentals and short-term stays.

Don’t see the form to download our Airbnb Host Guide? Click here.

Chapter 14 Airbnb Instant Book