Turo Host Taxes in New York - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in New York

Sharing your vehicle on Turo provides a flexible income stream, but navigating the tax implications as a New York host requires careful attention. Revenue generated through Turo is considered taxable income, and understanding your obligations is crucial for avoiding penalties.

The IRS requires Turo hosts to report their earnings on Schedule C (Profit or Loss From Business) as self-employment income. This means not only income tax but also self-employment tax – covering both Social Security and Medicare – will be due on net earnings exceeding $400. Maintaining accurate records of income and expenses is paramount throughout the year.

How New York Handles Gig Worker Taxes

As a resident of New York, you are required to file a New York State income tax return, even if your only income is from Turo. New York operates on a graduated income tax system, meaning the tax rate increases as your income rises. This means the amount of tax you owe will depend on your total income for the year, not just your Turo earnings. The primary form for self-employed individuals to report income and calculate tax liability is Form IT-201, Resident Income Tax Return. You will likely also need to file Form IT-201-ATT, Attachment to Form IT-201, to detail your business income and expenses. New York also requires estimated tax payments if you expect to owe $1,000 or more in taxes for the year. These payments are typically made quarterly. Failure to make timely estimated tax payments can result in penalties. New York also has specific rules regarding the deductibility of business expenses, which should be carefully reviewed to maximize tax savings. It's important to note that New York State also has a separate Metropolitan Commuter Transportation District surcharge for residents of the NYC metropolitan commuter transportation district.

For more information and resources, please visit the New York State Department of Taxation and Finance: https://www.tax.ny.gov/

Top Tax Deductions for New York Drivers

• Standard Mileage: The most popular deduction for Turo hosts. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: New York City and the surrounding areas are known for their tolls (including bridges and tunnels) and expensive parking. These costs are fully deductible as business expenses. Keep detailed records of all toll and parking receipts.
• Phone & Data Plan: If you use your phone for Turo-related activities (communication with renters, managing listings, etc.), you can deduct the percentage of your phone bill attributable to business use.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts, and any items purchased specifically for providing a positive Turo experience are deductible.

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

As a Turo host, you are considered self-employed. This means you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% and applies to your net earnings (income minus expenses) exceeding $400. Turo and other rental platforms do not withhold these taxes, so it’s crucial to plan for this liability when filing your tax return.