Turo Host Taxes in Idaho - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Idaho

Sharing your vehicle on Turo provides a flexible income stream, especially with Idaho’s diverse landscapes attracting tourists eager to explore everything from the Sawtooth Mountains to the Snake River Plain. However, that income is subject to both federal and state taxes. As a Turo host, you are considered self-employed by the IRS, meaning you’ll report your earnings on Schedule C with your Form 1040 and are responsible for paying self-employment taxes.

The IRS requires all income earned through Turo to be reported. This includes rental income received after Turo’s fees. Accurate record-keeping of all income and expenses is crucial for a smooth tax filing process. Failure to report income can result in penalties and interest.

How Idaho Handles Gig Worker Taxes

As a resident of Idaho, you are required to file a state income tax return, even if your only income is from Turo. Idaho operates under a flat income tax rate, meaning everyone pays the same percentage of their taxable income, regardless of income level. For the 2025 tax year, the Idaho income tax rate is 5.8%. Idaho considers income from Turo as business income, and it must be reported on your Idaho Form 40, Idaho Individual Income Tax Return. Self-employed individuals will typically use Schedule 1 (Idaho Form 40 Schedule 1, Additional Income and Adjustments) to report their Schedule C income. Idaho also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. This prevents underpayment penalties. Idaho’s tax system is administered by the Idaho State Tax Commission, which provides numerous resources for self-employed individuals. It’s important to note that Idaho does not have a separate tax specifically for gig workers; your Turo income is simply treated as business income subject to the standard individual income tax rules. The state also offers various credits and deductions that may apply to your situation, so thorough research is recommended. Remember to keep detailed records of all income and expenses related to your Turo business to accurately calculate your Idaho tax liability.

You can find more information and resources on the Idaho State Tax Commission website: https://tax.idaho.gov/

Top Tax Deductions for Idaho Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given Idaho’s relatively moderate gas prices compared to states like California or Washington, the standard mileage rate is often a very advantageous option.
• Tolls & Parking: While Idaho doesn’t have extensive toll road systems, any parking fees incurred while preparing a vehicle for rental or during vehicle maintenance are deductible.
• Phone & Data Plan: If you use your phone for Turo-related activities (communication with renters, managing listings, etc.), you can deduct the percentage of your phone bill that corresponds to business use.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts for renters, and even small amenities provided to renters are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment, platforms like Turo do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. This tax is applied to your net earnings – your Turo income minus your deductible business expenses – exceeding $400.