Turo Host Taxes in Connecticut - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Connecticut

Connecticut’s scenic routes and vibrant cities make it a popular destination for travelers, offering Turo hosts a unique opportunity to earn income by sharing their vehicles. However, alongside the benefits of vehicle sharing comes the responsibility of understanding and fulfilling tax obligations.

As a Turo host, the income earned from renting out your vehicle is considered self-employment income and must be reported to the IRS. This means filing a Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions.

How Connecticut Handles Gig Worker Taxes

Connecticut, as a state with a progressive income tax system, requires all residents, including those earning income through gig economy platforms like Turo, to file a state income tax return. This applies even if no Connecticut income tax was withheld from your Turo earnings. Connecticut utilizes a graduated tax rate structure, meaning the tax rate increases as your income increases. For the 2025 tax year, Connecticut residents will file using Form CT-1040, and self-employed individuals will typically need to complete Schedule CT-1040-SB (Self-Employment and Business Income). It’s crucial to accurately report your Turo income on this schedule to determine your Connecticut tax liability. Connecticut also allows for certain deductions that can reduce your taxable income, mirroring some federal deductions. Remember to keep meticulous records of all income and expenses related to your Turo hosting activity. Failure to file and pay Connecticut income taxes on time can result in penalties and interest. The Department of Revenue Services provides detailed information and resources for self-employed individuals on their website: Connecticut Department of Revenue Services. Connecticut also has specific rules regarding the apportionment of income if you operate in multiple states, which may be relevant if you occasionally allow renters to drive outside of Connecticut.

Top Tax Deductions for Connecticut Drivers

• Standard Mileage: The most straightforward deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given Connecticut’s relatively high cost of living, including fuel, the standard mileage rate often provides a significant tax benefit.
• Tolls & Parking: Connecticut drivers frequently encounter tolls on I-95 and the Merritt Parkway. These toll expenses, along with parking fees directly related to vehicle rentals, are deductible. Keep all receipts!
• Phone & Data Plan: If you use your phone for managing bookings, communicating with renters, or for GPS navigation during rentals, you can deduct the business-related percentage of your monthly bill.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts for renters, and even small amenities offered to renters are deductible as ordinary and necessary business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the greater tax savings.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Turo and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.