Turo Host Taxes in Oklahoma - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Oklahoma

Oklahoma’s wide-open roads and growing tourism scene make Turo a fantastic opportunity for vehicle owners to earn extra income. However, alongside the benefits comes the responsibility of accurate tax reporting. As a Turo host in Oklahoma, understanding your tax obligations is crucial for a smooth tax season.

The IRS requires all Turo hosts to report income earned through the platform on Schedule C (Profit or Loss From Business) as self-employment income. This income is subject to both income tax and self-employment tax, which covers Social Security and Medicare taxes. Platforms like Turo do not withhold these taxes, meaning hosts are responsible for paying them directly to the IRS.

How Oklahoma Handles Gig Worker Taxes

As a resident of Oklahoma, you are required to file a state income tax return, even if your only income is from Turo. Oklahoma utilizes a graduated income tax system, meaning the tax rate increases as your income increases. This differs from a flat tax rate. For self-employed individuals, the primary form used to report income and calculate tax liability is Oklahoma Form 540, along with Schedule 540, which is used to report business income. Oklahoma also allows for itemized deductions, which can potentially lower your overall tax burden. It’s important to note that Oklahoma conforms to many federal deductions, but there can be differences, so careful review is essential. The Oklahoma Tax Commission provides detailed information and resources for self-employed individuals, including estimated tax payment requirements. Failing to pay estimated taxes throughout the year can result in penalties. Oklahoma’s tax year follows the federal tax year, ending December 31st. Keep meticulous records of all income and expenses related to your Turo business to ensure accurate reporting and maximize potential deductions. The state also offers various credits that may be applicable, so exploring those options is recommended.

You can find more information and resources on the Oklahoma Tax Commission website: https://www.ok.gov/tax/

Top Tax Deductions for Oklahoma Drivers

• Standard Mileage: The #1 deduction for most Turo hosts. The 2025 rate is 70 cents per mile. Given Oklahoma’s relatively lower gas prices compared to states like California or Washington, the standard mileage rate is often a very advantageous option, simplifying record-keeping and maximizing your deduction.
• Tolls & Parking: While Oklahoma doesn’t have extensive toll road networks, any tolls incurred during Turo trips are deductible. Parking fees directly related to vehicle pick-up or drop-off for rentals are also deductible.
• 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 that corresponds to business use.
• Vehicle-Related Costs: Expenses like car wash supplies, air fresheners, phone mounts for renters, or even hot bags for food delivery rentals (if applicable) are deductible as ordinary and necessary business expenses.

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 larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Because Turo and other gig platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them to the IRS, typically through quarterly estimated tax payments. This tax applies to your net earnings – your total Turo income minus your deductible business expenses – exceeding $400.