Airbnb Host Taxes in Louisiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Louisiana

From the historic French Quarter of New Orleans to the charming bayous, Louisiana’s hospitality industry thrives on short-term rentals. However, welcoming guests through platforms like Airbnb doesn’t exempt hosts from tax obligations. Rental income is subject to taxation at both the federal and Louisiana state levels, requiring careful record-keeping and understanding of applicable rules.

Louisiana State Tax Rules for Rental Income

As a resident of Louisiana, filing a state income tax return is required regardless of the amount of rental income earned. Louisiana operates under a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Louisiana utilizes Form IT-540B, Individual Income Tax Return for Self-Employed Individuals, to report income derived from rental activities. Rental income is reported as part of your overall adjusted gross income. Crucially, Louisiana allows deductions similar to the federal level, including mortgage interest, property taxes (which can be substantial in many Louisiana parishes), and depreciation. However, it’s important to note that Louisiana’s conformity to federal tax laws isn’t always complete; therefore, staying updated on any state-specific changes is vital. The Louisiana Department of Revenue provides detailed information and forms on their website: Louisiana Department of Revenue. Remember to accurately calculate and report your rental income and expenses to avoid penalties. Louisiana also offers various credits and incentives that may be applicable, so exploring those options is recommended. Furthermore, if your rental activity generates a loss, limitations may apply regarding the amount you can deduct in a given year. Consulting with a Louisiana-licensed tax professional is highly recommended to ensure compliance with all state tax regulations.

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

This is the most important tax question for an Airbnb host, as it determines if you owe self-employment tax. The IRS classifies rental activity based on the level of services provided.

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Supplemental Income and Loss). This applies if you only provide basic lodging and cleaning between guests. Reporting on Schedule E means you are not subject to the 15.3% self-employment tax.
• Schedule C (Active Business Income): However, if you provide "substantial services" – think daily cleaning, providing meals, or concierge-style services – you report on Schedule C (Profit or Loss from Business). This triggers the 15.3% self-employment tax (Social Security and Medicare) on your net rental income.

Top Tax Write-offs for Louisiana Hosts

• Platform Fees: Fees charged by Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: Deduct the portion of your mortgage interest and property taxes that corresponds to the rental space and the period it was rented. Louisiana property taxes can be significant, making this a substantial deduction.
• Repairs, Maintenance & Cleaning: Deduct costs for fixing items in the rental property, professional cleaning services, and cleaning supplies. Maintaining a property in Louisiana’s humid climate often requires frequent maintenance.
• Depreciation: A powerful but complex deduction that allows you to deduct a portion of the property’s cost each year to account for wear and tear. This often requires the assistance of a qualified tax professional.