Airbnb Taxes for Hosts
It is important that you collect the right amount of taxes based on the area where your listing on the Airbnb platform is located. This amount should be discussed ahead of time with the person that is booking the room with you. This can be collected as a cost that is wrapped into the total price of the room or as a separate cost that can be paid in person upon arrival.
Whichever is easier for the host, they’re then able to offer this option or multiple options to their guests based on their area and the amount of tax that should be collected on the property. These taxes are known as occupancy taxes and are required in almost all of the areas around the world.
Value-Added Tax (VAT) is also something that is necessary to be paid on those properties that are being listed on Airbnb due to where the company is located. This is something that is required and spoken of prior to signing up for the service with the provider.
The Airbnb tax policy is stated based on your particular place of residence and what is required.
How Much Taxes Do Hosts Need to Pay?
The amount of taxes that you pay for your Airbnb income depends on a number of factors. These factors range from how long the property was rented, for how much it was rented, where you are located or the property is located and any other important factors.
The taxes can differ from place to place and the only way to get the most accurate tax amount is through speaking with a tax professional that can help you collect them and go over the income and assets.
Airbnb hosts don’t have to pay any taxes when:
- Their vacation rentals haven’t been occupied for any more than 12 days
- If they’ve used the vacation house for 14 or more days throughout the year for personal use
- If they rent it out only 10% of the time.
However, Airbnb tax deductions might also be available depending on your particular situation.
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 that is located on your dashboard, or if you’re a U.S. user, you can 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 that are using Airbnb for their properties.
Paying Taxes As an Experience Host
If you are offering Airbnb Experience services, you still need to tax them according to the area that you’re providing them in.
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 into for 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.
It is always important to understand how Airbnb fees and taxes work. We recommend hiring a tax professional or someone that knows how to do Airbnb taxes, as they can provide insightful information when you want to know how do Airbnb taxes work. These professionals are invaluable when renting out vacation rental and short-term properties.