Turo Host Taxes in Louisiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Louisiana

Sharing your vehicle on Turo offers a flexible income stream, but navigating the tax implications as a Louisiana resident requires careful attention. Revenue generated through Turo is considered taxable income, and understanding your obligations is crucial for avoiding penalties.

The IRS requires Turo hosts to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing your federal income tax return. This income is subject to both income tax and self-employment tax, which covers Social Security and Medicare taxes. Remember, Turo does not withhold these taxes, making proactive tax planning essential.

How Louisiana Handles Gig Worker Taxes

As a resident of Louisiana, you are required to file a state income tax return, even if no state income tax is due. Louisiana utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means your Turo income will be taxed at a rate determined by your total taxable income for the year. The primary form for self-employed individuals to report income and calculate tax liability is Louisiana Form IT-540B, Schedule E. Louisiana also allows for itemized deductions, which can potentially reduce your overall tax burden. It's important to note that Louisiana's tax laws can be complex, and staying updated on any changes is vital. The Louisiana Department of Revenue offers comprehensive information and resources for taxpayers, including details on filing requirements and available deductions. Louisiana also has a use tax that may apply to the purchase of your vehicle if it was purchased outside of the state and not previously taxed. Consult with a tax professional to ensure compliance with all applicable Louisiana tax laws.

You can find more information on Louisiana state taxes at the Louisiana Department of Revenue.

Top Tax Deductions for Louisiana Drivers

• Standard Mileage: The most popular deduction for Turo hosts. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Louisiana's relatively moderate gas prices, the standard mileage rate is often a beneficial option for simplifying your tax calculations.
• Tolls & Parking: While Louisiana doesn't have extensive toll road networks, any tolls incurred during Turo trips are deductible. Keep detailed records of parking fees directly related to your Turo business.
• 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 monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts for renters, and even small amenities offered to renters are deductible as ordinary and necessary business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance) in the same tax year. Choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a Turo host, you are responsible for paying both the employer and employee portions of these taxes on your net earnings (income after deductions) exceeding $400. This is a significant tax obligation, so accurate record-keeping and estimated tax payments throughout the year are highly recommended.