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Category: Getting Started
By: James Wu
Reply by Priya Nair:
Here's the tax basics for US hosts: **What Airbnb handles automatically:** - In most US states/cities, Airbnb collects and remits occupancy/hotel taxes on your behalf. Check your local tax settings in the Airbnb dashboard. **What YOU are responsible for:** - **Federal income tax** on your Airbnb earnings (minus deductible expenses). If you earn over $600, Airbnb sends you a 1099. You report this on Schedule E (rental income) or Schedule C (if you provide substantial services). - **Self-employment tax** (15.3%) if your income is classified as business income (Schedule C). This is a big one people miss. - **Quarterly estimated payments** — if you expect to owe $1,000+ in taxes, you should make quarterly estimated payments to avoid penalties. **Rule of thumb:** Set aside 25-30% of your net STR income for taxes. Put it in a separate savings account and don't touch it. **Deductions you can take:** - Mortgage interest, property taxes, insurance - Cleaning fees, supplies, amenities - Depreciation on the property and furnishings - Software subscriptions (PriceLabs, Hospitable, etc.) - Professional photography - A portion of your phone and internet bill Get a CPA who knows STR. Not a generic tax preparer — someone who specifically handles short-term rental taxes. It'll cost $300-500 but save you far more in deductions you'd otherwise miss.
Reply by Tyler Jackson:
In Florida specifically: no state income tax is a huge advantage. But you still need to register for and collect Florida's 6% sales tax PLUS your county tourist development tax (ranges from 2-6% depending on county). Check if Airbnb is already collecting these for your county. If not, you need to register with the FL Department of Revenue and the county tax collector. Also, great article breaking down tax deductions for STR hosts at https://strspecialist.com/blog.