VRBO Host Taxes in Ohio - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in Ohio

Ohio’s vibrant tourism, fueled by attractions like the Rock & Roll Hall of Fame and Hocking Hills State Park, makes short-term rentals a popular income source. However, revenue generated through platforms like VRBO is generally taxable income at both the federal and Ohio state levels. Understanding these tax obligations is crucial for compliance and maximizing potential deductions.

Ohio State Tax Rules for Rental Income

As a resident of Ohio, a state income tax return is required regardless of the amount of rental income earned. Ohio utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Ohio’s income tax rates range from 0% to 3.77% based on taxable income brackets. Rental income is reported on your Ohio income tax return, and as a self-employed individual deriving income from a rental property, you will likely need to file Form IT 1040, Ohio Income Tax Return, along with any applicable schedules. It's important to note that Ohio does not have a separate form specifically for rental income; it's integrated into the standard IT 1040 filing. If your rental activity is considered a business (see section 2), you may also need to file Schedule IT-BS, Business Income. Ohio also allows for certain deductions similar to the federal level, such as mortgage interest and property taxes, which can reduce your overall state tax liability. Keep meticulous records of all income and expenses related to your VRBO activity to accurately report your taxes. The Ohio Department of Taxation provides comprehensive resources and forms on their website: Ohio Department of Taxation. Failure to file and pay state taxes on time can result in penalties and interest.

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

This is the most important tax question for a VRBO host, as it determines if you owe self-employment tax. The IRS classifies rental activities based on the level of services provided.

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Supplemental Income and Loss) and are exempt from Self-Employment Tax. This applies if you only provide basic lodging and cleaning between guests. Think of it as simply providing a space for someone to stay.
• 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 (Profit or Loss from Business) and must pay the 15.3% self-employment tax (Social Security and Medicare). This is treated as running a small lodging business.

Top Tax Write-offs for Ohio Hosts

• Platform Fees: Fees from Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: Deduct the portion of mortgage interest and property taxes that corresponds 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), routine upkeep (maintenance), and professional cleaning services or cleaning supplies. Improvements that add value to the property are generally not deductible immediately but are depreciated.
• Depreciation: A powerful but complex deduction for the wear and tear on your rental 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.