Turo Host Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in New Hampshire

Leveraging the scenic beauty of the White Mountains and the convenience of city life, Turo hosts in New Hampshire are providing valuable transportation options – and generating taxable income. Understanding the tax implications of this income is crucial for compliance and maximizing potential savings.

As a Turo host, earnings are considered self-employment income and must be reported to the IRS on Schedule C (Profit or Loss From Business) with your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare, which Turo does not withhold. Accurate record-keeping throughout the year is essential to properly calculate your tax liability.

How New Hampshire Handles Gig Worker Taxes

New Hampshire offers a unique tax environment for gig workers, including Turo hosts. The state boasts no broad-based income tax, meaning you won’t owe state income tax on your Turo earnings. However, this does not exempt you from federal income and self-employment taxes. New Hampshire’s lack of income tax is a significant benefit, but it’s vital to remember that the IRS still requires reporting and payment of taxes on all income. Furthermore, while New Hampshire doesn’t have a traditional income tax, it does levy taxes on interest and dividends. Turo hosts should be mindful of any investment income generated from funds earned through the platform. The state’s business tax structure, specifically the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), generally doesn’t apply to individual Turo hosting activities unless it’s deemed a substantial, ongoing business operation with employees. However, it’s always best to consult with a tax professional to determine if these taxes apply to your specific situation. For more information on New Hampshire’s tax laws, please visit the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/. The state’s focus on limited government and low taxes makes it an attractive location for entrepreneurs, but diligent federal tax compliance remains paramount.

Top Tax Deductions for New Hampshire Drivers

• Standard Mileage: The #1 deduction for most Turo hosts. The 2025 rate is 70 cents per mile. Given New Hampshire’s relatively stable gas prices compared to some states, the standard mileage rate is often a very advantageous option, simplifying record-keeping and maximizing deductions.
• Tolls & Parking: New Hampshire doesn’t have extensive toll roads, but any tolls incurred during Turo trips, as well as parking fees directly related to rentals, are deductible. Keep receipts!
• Phone & Data Plan: If you use your phone for Turo-related communication (scheduling, messaging with renters, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car wash supplies to keep your vehicle rental-ready, phone mounts for renters, or even small amenities like charging cables 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 greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax, totaling 15.3%, 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. This applies to net earnings over $400. Remember to factor this significant tax liability into your financial planning throughout the year.