VRBO Host Taxes in Florida - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in Florida

Florida’s sunshine and vibrant tourism industry make it a prime location for short-term rentals, but success as a VRBO host also means understanding your tax obligations. Rental income is generally taxable at both the federal and state levels, though Florida’s state income tax situation is unique. This guide provides an overview of the key tax considerations for VRBO hosts in Florida for the 2025 tax year.

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 file a Florida state income tax return reporting your VRBO income. However, this doesn’t mean you’re entirely free from state-level considerations. Sales tax applies to short-term rentals (less than six months) in Florida, collected and remitted through the Department of Revenue. The rate varies by county, typically ranging from 6% to 7.5%, and may include discretionary sales surtaxes and tourist development taxes (TDT, often called “bed tax”). These taxes fund local tourism initiatives. It’s crucial to register with the Florida Department of Revenue to collect and remit these taxes correctly. Failure to do so can result in penalties and interest. 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. You can find information about registering your business with the state at Sunbiz.org. Local ordinances may also apply, so check with your county and city regarding any additional licensing or tax requirements.

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 directly impacts whether you 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 qualify for Schedule E reporting. This means you are not subject to the 15.3% self-employment tax (Social Security and Medicare).
• Schedule C (Active Business Income): If you provide “substantial services” to your guests, such as daily cleaning, providing meals, or offering concierge-style services, the IRS may consider your VRBO activity an active business. In this case, you’ll report income and expenses on Schedule C (Profit or Loss from Business) and will be responsible for paying the 15.3% self-employment tax.

Top Tax Write-offs for Florida Hosts

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

• 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: Expenses for repairing damage, routine maintenance (like plumbing or electrical work), and professional cleaning services are deductible. This also includes the cost of cleaning supplies.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property (and certain furnishings) over its useful life. Depreciation can significantly reduce your taxable income, but it’s a complex calculation and often requires the assistance of a qualified tax professional.