VRBO Host Taxes in West Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for VRBO Hosts in West Virginia

Nestled amongst the rolling hills and scenic beauty of the Mountain State, offering a vacation rental through VRBO presents a unique income opportunity. However, that income is subject to both federal and West Virginia state taxes, requiring careful planning and record-keeping. This guide provides an overview of the tax implications for VRBO hosts in West Virginia for the 2025 tax year.

West Virginia State Tax Rules for Rental Income

As a resident of West Virginia, income generated from your VRBO property is subject to West Virginia state income tax. West Virginia operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, it's crucial to understand that rental income is considered taxable income and must be reported on your annual state income tax return. The primary form used for reporting self-employment income, including rental income treated as business income (Schedule C), is Form WV-204, West Virginia Resident Income Tax Return. Even if reporting on Schedule E, the net rental income will be transferred to Form WV-204. West Virginia also allows for certain deductions that can reduce your taxable income, mirroring many of the federal deductions discussed below. It's important to note that West Virginia does not have a separate tax form specifically for rental income; it's integrated into the overall resident income tax return. Accurate record-keeping of all income and expenses is paramount to ensure compliance with West Virginia tax laws. Failure to properly report rental income can result in penalties and interest. For the most up-to-date information and official forms, please visit the West Virginia State Tax Department website: https://tax.wv.gov/. Remember to consult with a qualified tax professional to ensure you are maximizing all available deductions and complying with all applicable regulations.

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

This is the most important tax question for a VRBO host, as it determines if you owe self-employment tax.

• Schedule E (Passive Rental Income): Most casual hosts report on Schedule E (Passive Income) and are exempt from Self-Employment Tax. This applies if you only provide basic lodging and cleaning between guests. Think of it as simply renting out a space.
• Schedule C (Active Business Income): However, if you provide "substantial services" (daily cleaning, meals, providing toiletries beyond basic soap, concierge services), you report on Schedule C and must pay the 15.3% self-employment tax. This is because the IRS considers it an active business, not just a rental.

Top Tax Write-offs for West Virginia Hosts

• Platform Fees: Fees from Airbnb, VRBO, etc., are fully deductible. These are considered expenses incurred to generate rental income.
• Mortgage Interest & Property Taxes: Deduct the portion corresponding to the rental space and period. If the property is used both personally and as a rental, you must allocate these expenses accordingly.
• Repairs, Maintenance & Cleaning: Deduct costs for fixing items (leaky faucets, broken appliances), professional cleaning, and supplies. Routine maintenance is deductible; improvements that add value to the property are depreciated.
• Depreciation: A powerful but complex deduction for wear and tear on your property. Often requires a tax professional to calculate correctly. This applies to the building itself and certain furnishings.