Turo Host Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in South Carolina

Sharing your vehicle on Turo offers a flexible income stream, especially with the Palmetto State’s beautiful landscapes attracting visitors year-round. However, alongside the benefits comes the responsibility of accurate tax reporting. As a Turo host in South Carolina, understanding your federal and state tax obligations is crucial for a smooth tax season.

The IRS requires all Turo hosts to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) with Form 1040. 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 calculating and paying them, typically through estimated tax payments throughout the year.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, you are required to file a state income tax return, even if your only income is from Turo. South Carolina utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the primary form for self-employed individuals to report income and calculate tax liability is Form SC1040. This form is used in conjunction with your federal Form 1040. South Carolina also requires you to report your business income on Schedule B (Business Income) which accompanies Form SC1040.

South Carolina does not have a separate self-employment tax like the federal government. However, the state income tax calculation considers your self-employment income. You will calculate your adjusted gross income (AGI) on your SC1040, and then apply the appropriate tax brackets based on your filing status (single, married filing jointly, etc.). It’s important to accurately track your income and expenses throughout the year to ensure correct tax calculations. The South Carolina Department of Revenue offers resources and guidance for self-employed individuals, including information on estimated tax payments and available deductions. You can find more information at the South Carolina Department of Revenue website.

Top Tax Deductions for South Carolina Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given South Carolina’s relatively moderate gas prices, the standard mileage rate is often a beneficial and simplified method for calculating your vehicle expenses.
• Tolls & Parking: While South Carolina doesn’t have extensive toll roads, any tolls incurred during Turo trips are deductible. Keep receipts for parking fees associated with vehicle pick-up and drop-off.
• Phone & Data Plan: If you use your phone for Turo-related activities (communication with renters, managing bookings), 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 for renters, and even small amenities offered to renters 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 greater 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 don’t withhold these taxes, it’s your responsibility to calculate and pay them to the IRS, typically through quarterly estimated tax payments if your expected tax liability exceeds $1,000. This tax is calculated on your net earnings – your Turo income minus your deductible business expenses.