Turo Host Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Maryland

Sharing your vehicle on Turo provides a flexible income stream, but as a Maryland resident, understanding the tax implications is crucial for a smooth tax season. Revenue generated through Turo is considered taxable income by both the federal government and the State of Maryland.

The IRS requires Turo hosts to report their earnings on Schedule C (Profit or Loss From Business) as self-employment income. This means not only income tax, but also self-employment tax (Social Security and Medicare) applies to net earnings over $400. Accurate record-keeping of income and expenses is paramount.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, you are required to file a state income tax return, even if your only income is from Turo. Maryland utilizes a graduated income tax system, meaning the tax rate increases as your income increases. This means the amount of tax owed will vary based on your total taxable income, including earnings from Turo. The primary form for self-employed individuals to report income and calculate tax liability is Form 502, Maryland Income Tax Return. You will likely also need to file Schedule 1, Maryland Adjustments to Federal Adjusted Gross Income, to report any relevant adjustments. Maryland also has a county income tax, which is applied to your taxable income at rates varying by county. It's important to determine your county's tax rate when calculating your state tax liability. Furthermore, Maryland requires estimated tax payments if you expect to owe $100 or more in state taxes. Failure to make timely estimated payments can result in penalties. Keep detailed records of all Turo income and expenses to accurately complete your Maryland tax return.

For more information and resources regarding Maryland state taxes, please visit the Maryland Comptroller's Office website: https://www.marylandtaxes.gov/

Top Tax Deductions for Maryland Drivers

• Standard Mileage: The most popular deduction for Turo hosts. The 2025 rate is 70 cents per mile. Given Maryland's traffic congestion, particularly around the Baltimore-Washington corridor, maximizing mileage deductions can significantly reduce your tax burden.
• Tolls & Parking: Maryland drivers frequently encounter tolls, especially when traveling through the Baltimore Harbor Tunnel or the Fort McHenry Tunnel. These tolls, along with parking fees incurred for Turo trips, are deductible business expenses.
• Phone & Data Plan: If you use your phone for managing Turo bookings, communicating with renters, or navigating to pick-up/drop-off locations, you can deduct the business percentage of your monthly bill.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts, and any items specifically purchased for the purpose of renting your vehicle are deductible.

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

This 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. Platforms like Turo do not withhold these taxes, so it’s crucial to factor this into your tax planning and potentially make quarterly estimated tax payments to avoid penalties.