Turo Host Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Wisconsin

Sharing your vehicle on Turo provides a flexible income stream, but Wisconsin Turo hosts must understand their tax obligations to avoid penalties. Revenue generated through Turo is considered taxable income by both the federal government and the state of Wisconsin.

Federally, income earned as a Turo host is reported on Schedule C (Profit or Loss From Business) as self-employment income. This means you’re not only responsible for income tax but also self-employment tax, which covers Social Security and Medicare taxes that are typically withheld from a traditional employee’s paycheck. If your net earnings (income minus expenses) exceed $400, you will be subject to self-employment tax.

How Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, you are required to file a Wisconsin state income tax return, even if you’ve already paid estimated taxes. Wisconsin utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means the amount of tax you owe depends on your total taxable income and filing status. Turo income is considered part of your overall income and is subject to these graduated rates. The primary form for self-employed individuals to report income and calculate tax liability is Form 1040-ES (Estimated Tax for Individuals) for quarterly estimated payments, and Form 400 (Wisconsin Income Tax Return) when filing annually. Wisconsin also requires you to report your federal Schedule C income on Schedule 1 of Form 400. It’s crucial to accurately track your income and expenses throughout the year to ensure proper tax reporting. Wisconsin also offers credits and deductions that may reduce your overall tax burden, so exploring these options is recommended. Remember to keep detailed records of all Turo-related income and expenses for at least three years in case of an audit. For more information and resources, please visit the Wisconsin Department of Revenue: Wisconsin Department of Revenue.

Top Tax Deductions for Wisconsin Drivers

• Standard Mileage: The #1 deduction for many Turo hosts. The 2025 rate is 70 cents per mile. Given Wisconsin’s sometimes harsh winters and the need for frequent vehicle maintenance, the standard mileage rate often simplifies tax preparation.
• Tolls & Parking: While Wisconsin doesn’t have extensive toll roads, any tolls incurred during trips, as well as parking fees directly related to Turo rentals, are deductible.
• Phone & Data Plan: If you use your phone for managing bookings, communicating with renters, or for GPS navigation during rentals, you can deduct the percentage of your phone and data plan that is used for business purposes.
• Vehicle-Related Costs: Expenses like car wash supplies to keep your vehicle clean for renters, phone mounts for navigation, or even hot bags for food delivery (if you allow that) are deductible.

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

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are automatically withheld from your paycheck, as a Turo host, you are responsible for paying both the employer and employee portions of these taxes. Turo and other rental platforms do not withhold these taxes for you, so it’s essential to plan for this expense when managing your Turo income.