Turo Host Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Indiana

Sharing your vehicle on Turo provides a flexible income stream, but Indiana Turo hosts must understand their tax obligations to ensure compliance with both federal and state regulations.

As a Turo host, the income earned is generally considered self-employment income. This means it must be reported to the IRS on Schedule C (Profit or Loss From Business) with your Form 1040. Furthermore, because no taxes are withheld from your Turo earnings, hosts are responsible for paying self-employment taxes, which cover both Social Security and Medicare.

How Indiana Handles Gig Worker Taxes

Indiana, like most states, requires residents to file a state income tax return if their income exceeds certain thresholds. As a Turo host earning self-employment income, you will need to report your earnings on an Indiana state income tax return. Indiana operates under a flat income tax rate, currently at 3.15% for the 2025 tax year. This means all taxable income is taxed at the same rate. The primary form used for filing state income taxes as a self-employed individual in Indiana is Form IT-1040, Individual Income Tax Return. You will also likely need to file Schedule IT-1040, Schedule IN-K1 (Form IT-65), and potentially Schedule IT-196, depending on your specific deductions and income sources. It’s crucial to accurately calculate your net profit from Schedule C and transfer that amount to your Indiana tax return. Indiana also offers various credits and deductions that may reduce your tax liability. Remember to keep detailed records of all income and expenses related to your Turo hosting activity. For the most up-to-date information and forms, please visit the Indiana Department of Revenue website: https://www.in.gov/dor/. Indiana does not have a separate tax specifically for gig workers, but all income is subject to the state's individual income tax.

Top Tax Deductions for Indiana Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given Indiana’s relatively stable gas prices, the standard mileage rate is often a beneficial and simplified method for calculating your vehicle expenses.
• Tolls & Parking: While Indiana doesn’t have extensive toll roads like some states, any tolls incurred during vehicle delivery or pick-up, as well as parking fees directly related to your Turo business, are deductible.
• Phone & Data Plan: If you use your phone for Turo-related communication, scheduling, or managing your listings, you can deduct the percentage of your phone and data plan that corresponds to business use.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts for renters, first-aid kits, or even hot bags for delivery services are all deductible if they are directly related to your Turo hosting activities.

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 largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Because Turo and other gig platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them. This tax applies to your net earnings – your profit after deducting business expenses – exceeding $400. You’ll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.