VRBO Host Taxes in Tampa, Florida - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in Tampa, Florida

Tampa’s vibrant waterfront and attractions, from Busch Gardens to the Riverwalk, consistently drive strong demand for short-term rentals, making VRBO hosting a popular income source. However, that income is subject to both federal and Florida state tax regulations. Understanding these rules is essential for maximizing profits and avoiding penalties.

Florida State Tax Rules for Rental Income

Florida is unique in that it does not have a state income tax. This means VRBO hosts in Tampa, and throughout the state, are not required to file a Florida income tax return. 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 popular tourist destinations like Miami and Orlando. Tampa, with its growing convention business and leisure travel, is also seeing increased scrutiny. Staying compliant with IRS rules is crucial. Accurate record-keeping is paramount. Furthermore, even without state income tax, you are still responsible for collecting and remitting sales tax (Florida Sales and Use Tax) on your rental income, as well as any local tourist development taxes (TDT) imposed by Hillsborough County and the City of Tampa. These local taxes vary and are often based on the rental rate and duration. Failure to properly collect and remit these taxes can result in significant penalties. It's important to register with the Florida Department of Revenue to obtain the necessary tax identification numbers and understand your collection and remittance obligations. Resources are available through the Florida Department of State, Division of Corporations (Sunbiz.org): https://dos.myflorida.com/sunbiz/. Consider the impact of parking regulations in downtown Tampa when calculating expenses; parking tickets or permits related to guest turnover may be deductible if directly related to the rental activity.

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

This is the most important tax question for a VRBO host, as it determines if you owe self-employment tax.

• 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.
• 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.

Top Tax Write-offs for Tampa, Florida Hosts

• Platform Fees: Fees from Airbnb, VRBO, etc., are fully deductible.
• Mortgage Interest & Property Taxes: Deduct the portion corresponding to the rental space and period. If the property is used for both personal and rental purposes, you must allocate these expenses accordingly.
• Repairs, Maintenance & Cleaning: Deduct costs for fixing items (leaky faucets, broken appliances), professional cleaning, and supplies. Tampa’s humid climate can lead to more frequent maintenance needs, so keep detailed records.
• Depreciation: A powerful but complex deduction for wear and tear on your property. Often requires a tax professional. This applies to the building itself and certain furnishings.