VRBO Host Taxes in Kansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in Kansas

The Sunflower State welcomes visitors eager to experience its wide-open spaces and friendly hospitality, and increasingly, that hospitality is provided through short-term rentals. Revenue generated from your VRBO property is considered taxable income by both the federal government and the State of Kansas. Understanding these tax obligations is crucial for compliance and maximizing potential deductions.

Kansas State Tax Rules for Rental Income

As a resident of Kansas earning income from a VRBO property, filing a Kansas state income tax return is required, regardless of the amount of rental income received. Kansas operates under a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year (filing in 2026), the rates are subject to change, but current information can be found on the Kansas Department of Revenue website: https://www.ksrevenue.gov/. Rental income is generally reported as part of your overall adjusted gross income. Self-employed individuals, including VRBO hosts operating as a business (see section 2), will utilize Form K-40-X, Kansas Income Tax Return for Individuals, to report their income and deductions. It's important to note that Kansas does not have a separate form specifically for rental income; it's integrated into the standard individual income tax return. Kansas also allows for certain deductions that can reduce your taxable income, such as those related to property taxes paid (subject to limitations) and mortgage interest. Keep meticulous records of all rental-related income and expenses to accurately calculate your Kansas tax liability. Furthermore, Kansas requires accurate reporting of all income, and the Department of Revenue actively cross-references information with platforms like VRBO to ensure compliance. Failure to report income can result in penalties and interest.

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 (Supplemental Income and Loss) and are exempt from Self-Employment Tax. This applies if you only provide basic lodging and cleaning between guests. Essentially, if you're simply making a space available for rent, Schedule E is likely the correct form.
• 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 (Profit or Loss from Business) and must pay the 15.3% self-employment tax. This tax covers both Social Security and Medicare. The IRS looks at the degree of services provided, not just whether they are offered.

Top Tax Write-offs for Kansas Hosts

• Platform Fees: Fees from Airbnb, VRBO, etc., are fully deductible. These are considered expenses directly related to generating rental income.
• Mortgage Interest & Property Taxes: Deduct the portion of mortgage interest and property taxes corresponding to the rental space and the period it was rented. 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 (repairs), professional cleaning, and cleaning supplies. Routine maintenance is deductible; improvements that add value to the property are generally depreciated.
• Depreciation: A powerful but complex deduction for wear and tear on your property. This allows you to deduct a portion of the property's cost over its useful life. Often requires a tax professional to calculate correctly.