Airbnb Host Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in New Hampshire

With the White Mountains drawing visitors year-round and coastal towns bustling in the summer, New Hampshire’s short-term rental market is thriving. However, alongside the income comes the responsibility of accurate tax reporting. Rental income generated through platforms like Airbnb is generally taxable at both the federal and state levels, though New Hampshire’s tax landscape is uniquely simple in some respects.

New Hampshire State Tax Rules for Rental Income

New Hampshire is notable for not having a broad-based income tax. This means there is no New Hampshire state income tax on your Airbnb income. However, this does not exempt you from federal income tax obligations. All rental income must still be reported to the IRS. Furthermore, while New Hampshire doesn’t have a general income tax, it does levy taxes on interest and dividends. If your rental income generates significant interest or dividend income, those portions will be subject to New Hampshire’s Interest and Dividends Tax. It’s also crucial to understand that New Hampshire’s business tax structure, specifically the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), generally doesn’t apply to short-term rentals unless the activity is structured as a formal business entity (like an LLC) and meets certain revenue thresholds. However, local property taxes are still applicable and are a significant cost of ownership. Hosts should carefully review their property tax assessments and ensure they are accurate, as these are deductible at the federal level. For detailed information on New Hampshire’s tax system, consult the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/. Keep meticulous records of all income and expenses, as the IRS may still request documentation even in the absence of state income tax reporting.

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

Determining whether your Airbnb activity constitutes a passive rental or an active business is the most important tax decision you’ll make. This distinction dictates whether you’ll be subject to self-employment tax, a significant 15.3% tax on your profits.

• Schedule E (Passive Rental Income): Most casual Airbnb hosts report their income and expenses on Schedule E (Supplemental Income and Loss). This is appropriate if you primarily provide lodging and minimal services – essentially, cleaning between guests. If you fall into this category, you are generally exempt from self-employment tax.
• 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 a business. In this case, you must report your income and expenses on Schedule C (Profit or Loss from Business) and pay the 15.3% self-employment tax on your net profits.

Top Tax Write-offs for New Hampshire Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for New Hampshire Airbnb hosts:

• Platform Fees: All fees charged by Airbnb, VRBO, or other platforms are fully deductible.
• 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 you rent out 50% of your home, you can deduct 50% of these expenses.
• Repairs, Maintenance & Cleaning: Costs associated with repairing and maintaining your rental property, including professional cleaning services and cleaning supplies, are deductible. Remember, repairs are different than improvements; repairs maintain the property, while improvements add value.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property over its useful life. It’s a complex calculation, and consulting a tax professional is highly recommended. Depreciation can be particularly beneficial for properties in areas like the Lakes Region, where property values are substantial.