Turo Host Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Mississippi

Sharing your vehicle on Turo offers a flexible income stream, especially with the Magnolia State’s welcoming hospitality and demand for convenient transportation options. However, alongside the benefits comes the responsibility of accurate tax reporting. As a Turo host in Mississippi, understanding your federal and state tax obligations is crucial for a smooth tax season.

The IRS requires Turo hosts to report rental income on Schedule C (Profit or Loss From Business) as self-employment income. This means not only income tax but also self-employment tax, covering Social Security and Medicare, will be due on net earnings exceeding $400. Careful record-keeping throughout the year is essential to maximize deductions and minimize your tax liability.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, you are required to file a state income tax return, even if your only income is from Turo. Mississippi operates under a flat income tax rate, currently at 5%. This means all taxable income is taxed at the same percentage. Turo income is considered self-employment income for Mississippi tax purposes and must be reported on your state income tax return. The primary form used for reporting self-employment income and calculating your Mississippi income tax liability is Form 83-101, Individual Income Tax Return. You will likely need to include Schedule D, which is used to report income from sources other than wages. Mississippi also allows for a standard deduction, which can reduce your taxable income. It’s important to note that Mississippi does not have a separate self-employment tax like the federal government; your self-employment tax is calculated as part of your overall income tax liability. Accurate tracking of income and expenses is vital to correctly calculate your Mississippi tax obligation. For detailed information and the latest updates on Mississippi tax laws, please visit the Mississippi Department of Revenue website: https://www.dor.ms.gov/. Remember to consult with a tax professional if you have complex tax situations or are unsure about any aspect of your filing requirements.

Top Tax Deductions for Mississippi Drivers

• Standard Mileage: The #1 deduction for most Turo hosts. The 2025 rate is 70 cents per mile. Given Mississippi’s relatively lower gas prices compared to states like California or Washington, the standard mileage rate is often a very advantageous option for maximizing deductions.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred during vehicle delivery or pick-up, or parking fees directly related to your Turo business, are deductible.
• Phone & Data Plan: If you use your phone for Turo-related communication, scheduling, or managing your listings, 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, or even hot bags for food delivery (if you allow that) 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, or repairs in the same 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. Turo and other rental platforms do not withhold these taxes, so it’s crucial to plan for this expense when filing your federal tax return.