Turo Host Taxes in Los Angeles, California - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Los Angeles, California

Navigating the bustling streets of Los Angeles with a Turo rental vehicle presents a unique income opportunity, but it also comes with tax responsibilities. As a Turo host in Los Angeles, understanding these obligations is crucial for a smooth tax season.

The IRS requires all Turo hosts to report income earned through the platform on Schedule C (Profit or Loss From Business) as self-employment income. This means income received from Turo rentals is not considered wages, and no taxes are automatically withheld. Consequently, hosts are responsible for paying both income tax and self-employment tax on net earnings exceeding $400.

How California Handles Gig Worker Taxes

As a resident of California, a state income tax return is required, regardless of income level. California employs a graduated tax system, meaning the tax rate increases as your income increases. Turo income is considered self-employment income for California tax purposes and is reported on your California income tax return. The primary form for self-employed individuals in California is Form 540. California also requires you to calculate and pay self-employment tax, mirroring the federal requirement. Given the higher cost of living and frequent traffic congestion in Los Angeles, Turo hosts may find that meticulously tracking actual vehicle expenses – including depreciation, maintenance, insurance, and registration – can result in larger deductions than utilizing the standard mileage rate. Parking costs in areas like Santa Monica, Hollywood, and Downtown Los Angeles can be substantial and are deductible business expenses. Furthermore, be aware of any potential city-specific business licenses or regulations that may apply to Turo hosts operating within Los Angeles city limits. It's important to stay informed about changes to California tax law, as the state frequently updates its regulations regarding gig economy workers. For the most up-to-date information and resources, please visit the California Franchise Tax Board (FTB) website: https://www.ftb.ca.gov/

Top Tax Deductions for Los Angeles, California Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given California’s consistently high gas prices, carefully consider whether the standard mileage rate or the actual expense method will yield a greater tax benefit.
• Tolls & Parking: Los Angeles drivers frequently encounter tolls on certain highways and bridges. Keep detailed records of all toll expenses. Parking fees, especially those incurred while preparing a vehicle for rental in popular areas like West Hollywood or near LAX, are also deductible.
• Phone & Data Plan: If you use your phone for Turo-related activities (communication with renters, managing listings, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts, portable chargers, and cleaning products used specifically for Turo rentals are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that results in the largest overall deduction.

Understanding the 15.3% Self-Employment Tax

Self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment, Turo (and other gig platforms) does not withhold these taxes from your earnings. Therefore, you are responsible for calculating and paying this 15.3% tax on your net earnings (profit) exceeding $400. This is in addition to your regular income tax liability.