Turo Host Taxes in Utah - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Utah

Sharing your vehicle on Turo provides a flexible income stream, especially with Utah’s stunning national parks drawing visitors year-round. However, that income is subject to both federal and state taxes, requiring careful record-keeping and understanding of applicable regulations.

As a Turo host, the IRS considers income earned from renting your vehicle as self-employment income. This means it must be reported on Schedule C (Profit or Loss From Business) with your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld like they are from a traditional W-2 job.

How Utah Handles Gig Worker Taxes

Utah, like most states, requires residents to file a state income tax return, even if only self-employment income is earned. 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, simplifying the calculation. Turo income is considered taxable income and must be reported on your Utah state income tax return. The primary form for self-employed individuals to report income and calculate tax liability is Form TC-1040, Utah Individual Income Tax Return. You will need to report your Schedule C profit on this form. Utah also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. Failure to do so may result in penalties. The Utah State Tax Commission provides resources and tools for calculating and paying estimated taxes. Remember to keep detailed records of all income and expenses related to your Turo hosting activity, as these will be essential when filing your state return. Utah’s tax laws are subject to change, so it’s always best to consult the official state resources for the most up-to-date information.

You can find more information and resources on the Utah State Tax Commission website: https://tax.utah.gov/

Top Tax Deductions for Utah Drivers

• Standard Mileage: The most popular deduction for Turo hosts. The 2025 rate is 70 cents per mile. Given Utah’s diverse terrain and potential for longer trips to destinations like Moab or Park City, this rate can significantly reduce your taxable income.
• Tolls & Parking: While Utah doesn’t have extensive toll roads, any tolls incurred during vehicle rentals, as well as parking fees directly related to vehicle pick-up or drop-off, are deductible.
• Phone & Data Plan: If you use your phone for Turo-related communication (scheduling, messaging with renters), 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, or even small amenities provided 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

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, typically through estimated tax payments made quarterly to the IRS. The 15.3% rate applies to 92.35% of your net earnings (your profit after deducting business expenses) exceeding $400.