Short-Term Rental Tax Calculator — Your STR Tax Estimate

Hosting on Airbnb, VRBO, Furnished Finder, or direct bookings? Your rental income is taxable regardless of which platform you use. Here's how to estimate your tax bill and understand what the IRS requires.

What's Taxable

Every dollar of short-term rental income is subject to: - Self-employment tax (15.3%) on net rental profit - Federal income tax at your marginal bracket - State income tax (varies by state) - Potential local rental tax (some cities require STR hosts to register and pay local occupancy tax)

The key word is *net* profit — you pay tax on income *minus* deductible expenses.

Quick Tax Estimate by Annual Revenue

| Annual STR Revenue | Business Expenses | Net Profit | Est. Tax Bill | Take-Home | |---|---|---|---|---| | $10,000 | $2,000 | $8,000 | $1,200 | $6,800 | | $25,000 | $6,000 | $19,000 | $2,850 | $16,150 | | $50,000 | $12,000 | $38,000 | $5,700 | $32,300 | | $100,000 | $25,000 | $75,000 | $11,250 | $63,750 |

*Assumes single filer, federal + state average (5%), standard deduction. Actual tax varies by state and deductions claimed.*

The 14-Day Rule (Section 280A)

This is huge: if you rent out a property for 14 days or fewer in a year, the income is completely tax-free and requires no reporting. You pay zero tax on the rental income.

Example: You own a beach condo and rent it out for 10 days in summer via Airbnb for $5,000 total. That $5,000 is not taxable. You don't even have to report it.

However: If you rent it out for 15+ days, all rental income becomes taxable and you must file Schedule E.

This rule changes the equation completely for occasional rentals. Many property owners use this intentionally — rent during peak season for 10–14 days, keep all proceeds tax-free.

Deductible Expenses

Every business expense reduces your tax bill. Common STR deductions include:

- Mortgage interest (not principal) — fully deductible - Property tax — fully deductible - Insurance — landlord/STR policy - Utilities (electric, water, gas, internet) — fully deductible - Cleaning and maintenance — supplies, contractor labor - Repairs (not improvements) — fixing a broken window, patching drywall - Furnishings — furniture, linens, kitchen items (depreciated over 5–7 years or expensed under $2,500) - Depreciation — building, structure, appliances (15–27.5 year life) - Property management fees — if you use a service - Advertising — Airbnb fees (about 3% of revenue), VRBO fees, website hosting - Mileage — travel to inspect/repair property - Professional services — accountant, attorney, cleaning company

Key distinction: Repairs are deductible. Capital improvements (new roof, kitchen remodel) are depreciated over years. This difference can save thousands per year.

Platform-Agnostic Taxation

It doesn't matter which platform you use: - Airbnb - VRBO / Expedia - Furnished Finder - Direct bookings (your own website or word-of-mouth)

They're all taxed identically under Schedule E (if 15+ days). The only difference: Airbnb and VRBO may send you a 1099-NEC if you cross their reporting threshold (typically $20K+ in revenue). Direct bookings are still taxable even without a 1099.

Multi-Property Portfolios

If you host 3+ properties, your tax situation gets more complex: - Each property can have different holding periods (if rental ≤14 days on Property A but 200 days on Property B, only Property B is taxable) - Expenses are allocated per property - Passive activity limitations may apply (generally not an issue for STR, but worth noting) - Each property gets its own Schedule E line

Calculate your STR tax bill →

Related Reading

- The 14-day rental rule explained - Airbnb host tax guide - VRBO host tax guide - Rental property deductions checklist