Airbnb & Short-Term Rental Tax Calculator
For Tax Year 2025 (filing in 2026)
Estimate your tax obligations on Airbnb and short-term rental income. This calculator accounts for the 14-day rule, property depreciation, expense deductions, QBI deduction, and self-employment tax. See your net profit after tax per night.
Rental Income
RequiredPer stay
Annual Expenses
Airbnb: typically 3%
Property & Depreciation
For depreciation calc
Land is not depreciable
100% if entire home rented
Tax Situation
For tax bracket calculation
Net Profit After Tax
$4,270
$36 per night · 4.3% effective rate
Income & Expenses
Tax Estimate
View Expense Breakdown
Based on IRS Publication 527, IRC §280A, IRC §199A
Shared expenses prorated by rental days / 365. This is a simplified estimate.
The 14-Day Rule (IRC §280A(g))
If you rent your home for 14 days or fewer per year, all rental income is completely tax-free. You don't even need to report it on your tax return. This applies regardless of the amount earned. However, you also cannot deduct rental expenses.
Once you exceed 14 days, all rental income becomes taxable (not just the income from days beyond 14). This makes the 15th night particularly expensive from a tax perspective.
Deductible Rental Expenses
When renting more than 14 days, you can deduct expenses related to the rental activity. Expenses fall into two categories:
- Direct expenses (100% deductible): Cleaning costs, guest supplies, rental-specific repairs, platform fees, property management fees
- Shared expenses (prorated by rental days): Mortgage interest, property taxes, insurance, utilities — prorated by (rental days / 365)
Depreciation
Residential rental property is depreciated over 27.5 years using the straight-line method. Only the building value is depreciable — land value is excluded. For part-time rentals, depreciation is also prorated by rental days.
QBI Deduction vs. Self-Employment Tax
If you simply rent your property without providing "substantial services" (like daily cleaning, breakfast, or concierge services), your rental income may qualify for the Qualified Business Income (QBI) deduction — a 20% deduction under IRC §199A.
However, if you provide hotel-like services, the IRS considers this a business rather than passive rental activity, and self-employment tax (15.3%) applies to your net rental income. The QBI deduction does not apply in this case.
Platform Tax Reporting
Airbnb and other platforms report your rental income to the IRS on Form 1099-K if you earn $600 or more. Most platforms also collect and remit local occupancy/lodging taxes automatically in many jurisdictions.
Frequently Asked Questions
Is Airbnb income taxable?
Yes, if you rent for more than 14 days per year. All rental income must be reported on Schedule E of your tax return. If you rent 14 days or fewer, the income is completely tax-free under IRC §280A(g).
Do I need to pay self-employment tax on Airbnb income?
Only if you provide "substantial services" to guests (daily cleaning, meals, concierge). Standard short-term rentals where you simply provide the space are classified as passive rental income and are not subject to self-employment tax.
Can I deduct my mortgage payment?
You can deduct the interest portion of your mortgage payment (not the principal), prorated by the number of rental days divided by 365. For example, if you pay $12,000/year in mortgage interest and rent for 120 days, you can deduct approximately $3,945.
What is the 27.5-year depreciation rule?
Residential rental property is depreciated over 27.5 years using the straight-line method. You divide the building value (excluding land) by 27.5 to get annual depreciation. This deduction reduces your taxable rental income even though it's not an out-of-pocket expense.