Airbnb Host Taxes in Georgia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Georgia

Georgia’s hospitality scene is booming, and short-term rentals are a significant part of that growth. However, alongside the potential for income comes the responsibility of accurate tax reporting. Income earned through platforms like Airbnb is generally taxable at both the federal and Georgia state levels, requiring careful record-keeping and understanding of applicable regulations.

Georgia State Tax Rules for Rental Income

As a resident of Georgia earning income from an Airbnb property, filing a state income tax return is required. Georgia operates under a flat income tax rate, currently 5.49% for the 2025 tax year. This applies to all levels of taxable income. Income from your Airbnb is considered taxable income and must be reported on your Georgia income tax return. The primary form used for reporting self-employment income, including Airbnb income reported on Schedule C at the federal level, is Form 500, Individual Income Tax Return. If reporting rental income on Schedule E, the income still needs to be included on Form 500. Georgia also requires taxpayers to pay estimated taxes quarterly if they expect to owe $1,000 or more in state income tax. Failure to do so can result in penalties. It’s crucial to maintain detailed records of all rental income and expenses to accurately calculate your state tax liability. Georgia also offers various credits and deductions that may reduce your tax burden; exploring these options is recommended. The Department of Revenue provides comprehensive information and resources for taxpayers, including online filing options and tax publications. You can find more information at the Georgia Department of Revenue website: https://dor.georgia.gov/. Remember to consult the latest tax laws and regulations, as they are subject to change.

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

This is arguably the most important tax question for an Airbnb host, as it directly impacts whether you’ll owe self-employment tax. The IRS classification determines how your income is taxed and what deductions you can claim.

• Schedule E (Passive Rental Income): Most casual hosts report their Airbnb income on Schedule E (Supplemental Income and Loss). This is considered passive income, and generally, you are not subject to the 15.3% self-employment tax. This classification typically applies if you primarily provide basic lodging and minimal services – essentially, a place to stay and routine cleaning between guests.
• Schedule C (Active Business Income): If you provide “substantial services” to your guests, the IRS may consider your Airbnb operation an active business. “Substantial services” can include daily cleaning, providing meals, offering concierge services, or other hotel-like amenities. If classified as a business, you report income and expenses on Schedule C and are subject to the 15.3% self-employment tax (Social Security and Medicare).

Top Tax Write-offs for Georgia Hosts

Maximizing your deductions is key to minimizing your tax liability. Keep meticulous records of all expenses.

• 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 home used for rental purposes and the number of days it was rented. For example, if 20% of your home is used as a rental, you can deduct 20% of these expenses.
• Repairs, Maintenance & Cleaning: Costs associated with repairing and maintaining the rental property, as well as professional cleaning services and cleaning supplies, are deductible. Routine maintenance is deductible; major improvements that increase the property's value are generally depreciated.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property (or portions of it) over its useful life. It’s a complex calculation, and consulting a tax professional is highly recommended to ensure accurate application.