Airbnb Host Taxes in Orlando, Florida - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Orlando, Florida

Orlando’s vibrant tourism industry makes it a prime location for short-term rentals, but success as an Airbnb host requires understanding the associated tax obligations. Income earned through Airbnb, VRBO, or similar platforms is generally taxable at both the federal and state levels, even if it feels like a side hustle. This guide provides an overview of the key tax considerations for Airbnb hosts operating in Orlando, Florida, for the 2025 tax year.

Florida State Tax Rules for Rental Income

Florida is unique in that it does not have a state income tax. This means you won’t be filing a Florida state income tax return reporting your Airbnb income. However, this doesn’t mean you’re off the hook entirely. 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. The IRS scrutinizes income reported through platforms like Airbnb, and accurate record-keeping is paramount. Furthermore, while there's no state income tax, you are still responsible for collecting and remitting sales tax (Florida Sales and Use Tax) on your rentals. The rate is 6% statewide, but Orange County (where Orlando is located) adds a discretionary sales surtax, bringing the total to 6.5% as of late 2024. Local ordinances in Orlando may also impact your operations; it's important to check with the City of Orlando regarding any specific regulations or licensing requirements that could affect your tax obligations. Registering your business with the Florida Department of State’s Division of Corporations (Sunbiz.org) is also recommended, even if not strictly required for tax purposes, as it establishes your business legitimacy.

For more information on business registration and Florida state resources, visit Sunbiz.org.

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

This is the most important tax question for an Airbnb host, as it determines whether you owe self-employment tax. The IRS classifies rental activity differently based on the level of service provided.

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Passive Income) and are exempt from Self-Employment Tax. This applies if you only provide basic lodging and cleaning between guests. Think of it as simply renting out a space. This is the typical scenario for many Orlando hosts who manage properties remotely or use a property management company.
• Schedule C (Active Business Income): However, if you provide "substantial services" (daily cleaning, meals, providing toiletries beyond basic soap, concierge services), you report on Schedule C and must pay the 15.3% self-employment tax. This is treated as running a bed and breakfast-style business. Consider the competitive Orlando market; offering substantial services might attract more bookings but significantly increases your tax burden.

Top Tax Write-offs for Orlando, Florida Hosts

Maximizing deductions is key to minimizing your tax liability. Here are some common write-offs for Airbnb hosts in Orlando:

• Platform Fees: Fees from Airbnb, VRBO, etc., are fully deductible.
• Mortgage Interest & Property Taxes: Deduct the portion of mortgage interest and property taxes corresponding to the rental space and period. If the property is used for both personal and rental purposes, you’ll need to allocate these expenses accordingly.
• Repairs, Maintenance & Cleaning: Deduct costs for fixing items (leaky faucets, broken appliances), professional cleaning, and cleaning supplies. Orlando’s humidity and high occupancy rates can lead to more frequent maintenance needs.
• Depreciation: A powerful but complex deduction for wear and tear on your property. This allows you to deduct a portion of the property's cost over its useful life. Often requires a tax professional to calculate correctly.