Effective October 15, 2015, Airbnb will collect and send the following taxes to the Department of Revenue (DOR) on behalf of Airbnb ‘hosts’ who use the website for short-term lodging sales:
- state and local retail sales tax
- special hotel/motel taxes
- convention and trade center taxes
(See Airbnb’s public policy statement for more information).
If a host made lodging sales before October 15, 2015, the host needs to collect and send all taxes to the department for that time period.
A host still needs to register with DOR to report their rental income on an excise tax return:
- The host reports all of their Airbnb rental income under all appropriate tax classifications – Retailing and Retail Sales Tax.
- The host can then claim a deduction under the Sales Tax classification. This deduction is equal to the rentals made through Airbnb as of October 15, 2015. The deduction is itemized under “Other” with an explanation that the sales and lodging taxes were collected and sent by Airbnb.
The host needs to pay any Retailing B&O tax due after taking the small business B&O tax credit, if applicable. The credit calculates automatically when the host electronically files.
A host cannot take deductions for Airbnb charges such as a service fee or commission; service fees and commissions are considered a hosts’ cost of doing business with Airbnb.
What if I have more questions?
- Call our Telephone Information Center at 1-800-647-7706.
Visit Airbnb’s website:
- Help section: https://www.airbnb.com/help/article/481/how-do-taxes-work-for-hosts
- General information: https://www.airbnb.com/about/about-us.
A “host” is the party who rents out an accommodation through Airbnb.