Airbnb Host Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Nebraska

From the rolling hills of the Sandhills to the vibrant city life in Omaha, short-term rentals are becoming increasingly popular in Nebraska, offering homeowners a unique income opportunity. However, this income is subject to both federal and Nebraska state taxes, requiring careful record-keeping and understanding of applicable regulations. This guide provides an overview of the tax implications for Airbnb hosts in Nebraska for the 2025 tax year.

Nebraska State Tax Rules for Rental Income

As a resident of Nebraska, any income earned from Airbnb hosting is subject to Nebraska state income tax. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year (filing in 2026), it's crucial to understand how your rental income fits into this system. Nebraska requires all residents with income exceeding the standard deduction to file a state income tax return. The primary form for self-employed individuals, including Airbnb hosts reporting income on Schedule C, is Nebraska Form 1040N, with Schedule I (Nebraska Adjustment to Income) and Schedule SE (Self-Employment Tax). Even if reporting on Schedule E, you will still need to file Form 1040N to report the income.

Nebraska also has specific rules regarding the apportionment of income if the rental property is located partially in another state. Furthermore, Nebraska allows for certain deductions mirroring federal deductions, such as those for qualified business income (QBI), potentially reducing your overall tax liability. It is important to note that Nebraska does not automatically conform to all federal tax changes; therefore, staying updated on any state-specific legislation is vital. The Nebraska Department of Revenue provides detailed information and resources for taxpayers, including frequently asked questions and tax forms. You can find more information at the Nebraska Department of Revenue website.

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 short-term rental activity based on the level of services provided.

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Passive Income) and are exempt from Self-Employment Tax. This applies if you only provide basic lodging and cleaning between guests. Think of it as simply renting out a space.
• Schedule C (Active Business Income): However, if you provide "substantial services" (daily cleaning, meals, providing toiletries beyond basic soap, concierge services), you report on Schedule C and must pay the 15.3% self-employment tax (Social Security and Medicare). This is treated as running a lodging business.

Top Tax Write-offs for Nebraska Hosts

• Platform Fees: Fees from Airbnb, VRBO, etc., are fully deductible. These are considered expenses directly related to generating rental income.
• Mortgage Interest & Property Taxes: Deduct the portion of mortgage interest and property taxes corresponding to the rental space and the period it was rented. If the property is used for both personal and rental purposes, you must allocate these expenses accordingly.
• Repairs, Maintenance & Cleaning: Deduct costs for fixing items (repairs), professional cleaning, and cleaning supplies. Routine maintenance is deductible; however, improvements that add value to the property are depreciated.
• Depreciation: A powerful but complex deduction for wear and tear on your property. This allows you to deduct a portion of the property's cost over its useful life. Often requires a tax professional to calculate correctly.