VRBO Host Taxes in Miami, Florida - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in Miami, Florida

The vibrant Miami rental market, fueled by sunshine and year-round tourism, presents exciting opportunities for VRBO hosts. However, alongside the potential for strong income comes the responsibility of accurate tax reporting. Rental income, whether from a South Beach condo or a Little Havana house, is generally taxable at both the federal and state levels, though Florida’s state income tax situation is unique (more on that below).

Florida State Tax Rules for Rental Income

Florida stands out as one of the few states with no state income tax. This means you won’t be filing a Florida state income tax return based on your VRBO income. However, this doesn’t mean you’re entirely free from state-level tax considerations. Sales tax applies to short-term rentals (less than six months) in Florida, collected and remitted by platforms like VRBO in most cases. It’s crucial to verify that the platform is handling this correctly for your listings. Local counties and municipalities, including Miami-Dade County, may also impose tourist development taxes (TDT), often referred to as “bed taxes.” These taxes are typically collected and remitted by the rental platform, but hosts should confirm compliance. Furthermore, while you get to skip filing a state income tax return, remember that Florida's high tourism can lead to more aggressive federal audits for cash-based gig work, especially in cities like Miami and Orlando. Staying compliant with IRS rules is crucial. Consider the unique challenges of Miami – limited parking can necessitate valet services (a deductible expense, potentially), and high local demand means meticulous record-keeping is vital to justify expenses. For business registration and information, visit the Florida Division of Corporations, Sunbiz.org: https://dos.myflorida.com/sunbiz/.

The Critical Tax Question: Are You a Business or a Rental?

Determining whether your VRBO activity constitutes a passive rental or an active business is the most important tax question for a host, as it dictates whether you’ll owe self-employment tax.

• Schedule E (Passive Rental Income): Most casual hosts report their rental income and expenses on Schedule E (Supplemental Income and Loss). If you simply provide basic lodging and cleaning between guests – think changing linens and a quick tidy-up – you’ll likely fall into this category and are exempt from the 15.3% self-employment tax.
• Schedule C (Active Business Income): If you provide “substantial services” to guests, such as daily cleaning, providing meals, or offering concierge-style services, the IRS may consider your activity an active business. In this case, you’ll report income and expenses on Schedule C (Profit or Loss from Business) and will be subject to the 15.3% self-employment tax (Social Security and Medicare).

Top Tax Write-offs for Miami, Florida Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for VRBO hosts in Miami, Florida:

• Platform Fees: Fees charged by Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: You can deduct the portion of your mortgage interest and property taxes that corresponds to the percentage of your property used for rental purposes and the number of days it was rented.
• Repairs, Maintenance & Cleaning: Costs associated with repairing damage, routine maintenance (like pool service, common in Miami), and professional cleaning services are deductible. Keep detailed receipts!
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property over its useful life. It’s a complex calculation, and consulting a tax professional is highly recommended.