VRBO Host Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in New Hampshire

With the White Mountains drawing visitors year-round and the Lakes Region bustling in the summer, New Hampshire’s short-term rental market is thriving. However, success as a VRBO host comes with tax responsibilities. Rental income is generally taxable at both the federal and state levels, though New Hampshire’s tax landscape is uniquely simple in some respects. This guide provides an overview of the key tax considerations for VRBO hosts in New Hampshire for the 2025 tax year.

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 VRBO income. However, this does not mean you are exempt from all state taxes. Federal income tax obligations remain fully in effect, and you are still responsible for reporting your rental income to the IRS. Furthermore, New Hampshire does levy taxes on interest and dividends, and while rental income itself isn’t taxed at the state level, any income generated from that rental income (e.g., interest earned on rental income held in a savings account) would be subject to those taxes.

A unique aspect of New Hampshire’s tax system is its reliance on property taxes. These property taxes, which you pay locally, are deductible on your federal return (as outlined below), but are not offset by a state income tax. Additionally, New Hampshire has a Rooms and Meals tax that applies to short-term rentals. VRBO and similar platforms are generally responsible for collecting and remitting this tax on your behalf, but it’s crucial to verify this is happening correctly. Hosts should retain records of all rental transactions to ensure accurate reporting, even if the platform handles tax collection. For more information on New Hampshire’s tax laws and regulations, please visit the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/. Understanding the nuances of property tax assessments and potential exemptions related to short-term rentals within your specific town or city is also recommended.

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

Determining whether your VRBO activity constitutes a passive rental or an active business is the most important tax question for a host, as it dictates whether you’ll owe self-employment tax.

• Schedule E (Passive Rental Income): Most casual hosts report their rental income and expenses on Schedule E (Supplemental Income and Loss). This applies if you primarily provide basic lodging and cleaning between guests. Reporting on Schedule E means you are not subject to the 15.3% 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 services – the IRS may consider your rental activity an active business. In this case, you report income and expenses on Schedule C (Profit or Loss from Business) and are responsible for paying the 15.3% self-employment tax on your net profits.

Top Tax Write-offs for New Hampshire Hosts

• Platform Fees: Fees charged by Airbnb, VRBO, and other 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 and the number of days it was rented. For example, if your property was rented 50% of the year, 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 address existing issues, while improvements add value to the property (and are depreciated).
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property (and certain furnishings) over its useful life. Depreciation calculations can be complex, and it’s often advisable to consult with a tax professional.