Airbnb Host Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Mississippi

From the historic homes of Natchez to the Gulf Coast beaches, Mississippi’s hospitality is renowned, and short-term rentals are becoming increasingly popular. However, income earned through platforms like Airbnb is generally taxable at both the federal and Mississippi state levels. Understanding these tax obligations is crucial for responsible hosting.

Mississippi State Tax Rules for Rental Income

As a resident of Mississippi earning income from an Airbnb property, filing a state income tax return is required, even if federal taxes have been withheld. Mississippi operates under a flat income tax rate, currently at 5%. This means all taxable income is taxed at the same percentage. The primary form for reporting self-employment income, including rental income reported on Schedule C, is Form 83-101, Individual Income Tax Return. Rental income reported on Schedule E is also reported on Form 83-101. It’s important to note that Mississippi does not have a separate tax form specifically for rental income; it’s integrated into the standard individual income tax return. Mississippi also requires taxpayers to pay estimated taxes quarterly if they expect to owe $1,000 or more in taxes for the year. Failure to do so may result in penalties. Keep meticulous records of all income and expenses related to your Airbnb activity, as these will be essential when preparing your state tax return. The Mississippi Department of Revenue provides detailed information and resources for taxpayers, including downloadable forms and instructions. You can find more information at the Mississippi Department of Revenue website.

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

This is arguably the most important tax question for an Airbnb host, as it directly impacts whether you’ll owe self-employment tax. The IRS classification determines how your income is taxed and what deductions you can claim.

• Schedule E (Passive Rental Income): Most casual hosts report their Airbnb income on Schedule E (Supplemental Income and Loss). This applies if you primarily provide lodging and minimal services – essentially, making the space available and perhaps arranging for basic cleaning between guests. Reporting on Schedule E generally exempts you from the 15.3% self-employment tax (Social Security and Medicare).
• Schedule C (Active Business Income): If you provide “substantial services” to your guests, such as daily cleaning, providing meals, or offering concierge-style assistance, the IRS may consider your Airbnb activity an active business. In this case, you’ll report income and expenses on Schedule C (Profit or Loss from Business) and will be subject to the 15.3% self-employment tax.

Top Tax Write-offs for Mississippi Hosts

Maximizing your deductions can significantly reduce your tax liability. Here are some common write-offs for Mississippi Airbnb hosts:

• Platform Fees: All fees charged by Airbnb, VRBO, or other rental platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: You can deduct the portion of your mortgage interest and property taxes that corresponds to the percentage of your home used for rental purposes. For example, if 20% of your home is rented, you can deduct 20% of these expenses.
• Repairs, Maintenance & Cleaning: Costs associated with maintaining and repairing your rental property, including professional cleaning services and cleaning supplies, are deductible. Routine maintenance is deductible; major improvements that increase the property's value are generally depreciated.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property (or portions of it) over its useful life. It’s a complex calculation, and consulting with a tax professional is highly recommended to ensure accurate reporting.