Short-Term Rental Airbnb Tax Calculator
Airbnb and Vrbo income gets reported differently depending on services you provide. Hotel-like service = Schedule C (self-employment tax). Passive rental = Schedule E. Stays under 14 days/year may be tax-free entirely. Calculate your specific situation.
Schedule C vs Schedule E
If you provide substantial services beyond what a typical apartment renter provides (daily cleaning, breakfast, concierge, tours), the IRS treats your Airbnb as a hotel-like trade or business — Schedule C with self-employment tax. If you offer only standard items (Wi-Fi, basic linens, occasional cleaning), it's a passive rental on Schedule E.
The 14-Day Rule
If you rent your home for fewer than 15 days per year AND personally use it as a residence more than 14 days, the rental income is entirely tax-free. You cannot deduct rental expenses. Many homeowners exploit this — short-term rent your home during Super Bowl, Augusta National, or other peak events for tax-free cash.
Local Occupancy Taxes
Most cities charge a local occupancy tax (4-15%) on short-term rentals. Airbnb often collects and remits in major markets, but you remain responsible if they don't. Some cities also require business licenses, regular inspections, and registration. Compliance failure can mean retroactive tax + penalties.
Source: IRS Publication 527 (Residential Rental Property), IRS Topic 415 (Renting Residential and Vacation Property). Last updated: May 2026.