Airbnb Host Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Oregon

Oregon’s diverse landscapes, from the coast to the high desert, attract visitors year-round, making short-term rentals a popular income source. However, revenue generated through platforms like Airbnb is subject to both federal and Oregon state income taxes. Understanding these obligations is crucial for compliant and optimized tax filing for the 2025 tax year.

Oregon State Tax Rules for Rental Income

As a resident of Oregon, filing a state income tax return is required regardless of income level. Oregon utilizes a graduated tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals, including Airbnb hosts reporting income on Schedule C, will primarily use Form OR-40, the Oregon Individual Income Tax Return, along with Schedule OR-SBIS (Self-Employment Business Income Schedule). Oregon also requires reporting of income earned from sources outside of Oregon. The state does not offer a specific exemption for small amounts of rental income. It's important to accurately track all rental income received, even if it seems minimal. Furthermore, Oregon’s tax rates are subject to change, so staying updated with the latest information from the Oregon Department of Revenue is essential. Oregon also has a minimum tax calculation that may apply, even if your tax liability calculated using the standard method is zero. This is particularly relevant for those with significant deductions. Finally, remember to consider any local taxes or regulations imposed by the city or county where your rental property is located, as these are separate from state income tax.

For more information and resources, please visit the Oregon Department of Revenue: Oregon Department of Revenue

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

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

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Supplemental Income and Loss). This applies if you only provide basic lodging and cleaning between guests. If you fall into this category, you are generally exempt from the 15.3% self-employment tax (Social Security and Medicare).
• Schedule C (Active Business Income): However, if you provide "substantial services" – think daily cleaning, providing meals, concierge services, or similar hotel-like amenities – you report on Schedule C (Profit or Loss from Business) and must pay the 15.3% self-employment tax. The IRS looks at the frequency and extent of services provided.

Top Tax Write-offs for Oregon Hosts

• Platform Fees: Fees charged by Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: Deduct the portion of your 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 increase the property's value are not deductible as current expenses but are depreciated.
• Depreciation: A powerful but complex deduction that allows you to recover the cost of your rental property (and certain furnishings) over its useful life. This often requires the assistance of a qualified tax professional to ensure accurate calculation and reporting.