Turo Host Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Oregon

Sharing your vehicle on Turo provides a flexible income stream, but navigating the tax implications as an Oregon resident requires careful attention. Revenue generated through Turo is considered self-employment income, subject to both federal and state taxes.

The IRS requires Turo hosts to report their earnings on Schedule C (Profit or Loss From Business) with Form 1040. This income is also subject to self-employment tax, which covers both Social Security and Medicare taxes. Platforms like Turo do not withhold these taxes, meaning hosts are responsible for calculating and paying them directly to the IRS, typically through estimated tax payments throughout the year.

How Oregon Handles Gig Worker Taxes

As a resident of Oregon, you are required to file a state income tax return, even if your only income is from Turo. Oregon utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form OR-40, Oregon Individual Income Tax Return, to report their Turo income. This income will be added to your total income and taxed according to the applicable brackets. Oregon also requires you to calculate and pay Oregon income tax on your net earnings from self-employment. The state's Department of Revenue provides detailed information and resources for self-employed individuals, including estimated tax payment requirements. It's crucial to understand that Oregon does not have a separate self-employment tax like the federal government; instead, your net earnings from Schedule C are subject to the regular Oregon income tax rates. Furthermore, Oregon allows for certain deductions that can reduce your taxable income, such as business expenses directly related to your Turo hosting activities. Accurate record-keeping is essential to maximize these deductions and ensure compliance with Oregon tax laws. The Oregon Department of Revenue website is a valuable resource for understanding these rules and regulations: Oregon Department of Revenue.

Top Tax Deductions for Oregon Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given Oregon's diverse terrain and potential for longer trips to popular destinations like the coast or the high desert, the standard mileage rate is often a beneficial option.
• Tolls & Parking: While Oregon doesn't have widespread toll roads, any parking fees incurred while preparing a vehicle for rental or during vehicle pick-up/drop-off are deductible.
• Phone & Data Plan: The percentage of your phone and data plan used for Turo-related communication (e.g., coordinating with renters, managing listings) is deductible.
• Vehicle-Related Costs: Expenses like car cleaning supplies, air fresheners, phone mounts for renters, and even small amenities offered to renters are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the largest deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare, and it's important to remember that platforms like Turo do not withhold these taxes from your earnings. You are responsible for calculating and paying this tax on your net earnings (income minus business expenses) exceeding $400.