Airbnb Host Taxes in Utah - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Utah

Utah’s stunning national parks and ski resorts make it a popular destination for travelers, creating a thriving short-term rental market. Income earned through platforms like Airbnb is generally taxable at both the federal and Utah state levels, requiring careful record-keeping and understanding of applicable tax laws. This guide provides an overview of key tax considerations for Airbnb hosts in Utah for the 2025 tax year.

Utah State Tax Rules for Rental Income

As a resident of Utah, or someone earning income sourced from Utah, filing a state income tax return is required, even if no federal tax is due. Utah operates under a flat income tax rate, currently at 4.85% for the 2025 tax year. This means all taxable income is taxed at the same rate. Rental income is considered taxable income and must be reported on your Utah state income tax return. The primary form used for reporting self-employment or business income, including Airbnb hosting income reported on Schedule C at the federal level, is Form TC-1040, Utah Individual Income Tax Return. Even if reporting on Schedule E federally (passive income), the income still needs to be included on Form TC-1040. Utah also allows for deductions similar to those at the federal level, such as mortgage interest and property taxes, but these may be subject to specific state limitations. It’s crucial to maintain detailed records of all rental income and expenses to accurately calculate your Utah tax liability. Furthermore, Utah requires the payment of sales tax on short-term rentals. Hosts are responsible for collecting and remitting sales tax to the Utah State Tax Commission. The current sales tax rate varies depending on the location within Utah, encompassing both state and local rates. Failure to comply with sales tax regulations can result in penalties and interest. For the most up-to-date information on Utah state taxes and regulations, please visit the Utah State Tax Commission website: https://tax.utah.gov/

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

Determining whether your Airbnb hosting activity constitutes a passive rental or an active business is the most important tax question, as it directly impacts your self-employment tax obligations.

• Schedule E (Passive Rental Income): Most casual hosts report their rental income and expenses on Schedule E (Supplemental Income and Loss). If you primarily provide lodging and basic cleaning between guests – think changing linens and wiping down surfaces – you likely qualify for Schedule E reporting. This means you are not subject to the 15.3% self-employment tax.
• Schedule C (Active Business Income): If you provide “substantial services” to guests, such as daily cleaning, meals, or concierge services, the IRS may consider your activity an active business. In this case, you must report your income and expenses on Schedule C (Profit or Loss from Business) and pay the 15.3% self-employment tax on your net profits.

Top Tax Write-offs for Utah Hosts

• Platform Fees: Fees charged by Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: You can deduct the portion of your mortgage interest and property taxes that corresponds to the percentage of your home used for rental purposes and the number of days it was rented.
• Repairs, Maintenance & Cleaning: Expenses for repairs (fixing existing issues), maintenance (preventative upkeep), and professional cleaning services are deductible. This also includes the cost of cleaning supplies.
• Depreciation: Depreciation allows you to deduct a portion of the cost of your rental property over its useful life. This is a complex deduction, and consulting with a tax professional is highly recommended to ensure accurate calculation and compliance.