Airbnb Host Taxes in Wyoming - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in Wyoming

Wyoming’s wide-open spaces and tourism draw make short-term rentals a popular income source, but success as an Airbnb host requires understanding the associated tax obligations. Rental income, whether from a cozy cabin near the Grand Tetons or a modern apartment in Cheyenne, is generally taxable at both the federal and state levels – though Wyoming’s state tax landscape is uniquely simple.

Wyoming State Tax Rules for Rental Income

Wyoming is one of the few states in the nation with no state income tax. This means Airbnb hosts are not subject to Wyoming state income tax on their rental income. However, this does not exempt hosts from federal income tax obligations. All rental income must still be reported to the IRS. Furthermore, while Wyoming doesn’t have a state income tax, it does collect sales tax on lodging. Airbnb generally handles the collection and remittance of Wyoming’s 6% lodging tax on behalf of hosts, but it’s crucial to verify this is happening correctly through your Airbnb dashboard. Hosts should also be aware of any local lodging taxes imposed by cities or counties – for example, Jackson Hole has a 4% local lodging tax in addition to the state tax. Keeping accurate records of all income and taxes collected (even if collected by Airbnb) is vital for audit defense. Wyoming’s business-friendly environment doesn’t negate the need for diligent tax compliance at the federal level. The lack of state income tax can be a significant benefit, but it doesn’t diminish the importance of understanding and fulfilling federal tax responsibilities. Resources for Wyoming businesses, including information on sales tax, can be found on the Wyoming Department of Revenue website: Wyoming Department of Revenue.

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

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

• Schedule E (Passive Rental Income): Most casual hosts report their rental income and expenses on Schedule E (Supplemental Income and Loss). This applies if you primarily provide basic lodging and minimal services – essentially, offering a place to stay and cleaning between guests. Reporting on Schedule E exempts you from the 15.3% self-employment tax.
• Schedule C (Active Business Income): If you provide “substantial services” to your guests, such as daily cleaning, providing meals, or offering concierge-style services, the IRS may consider your Airbnb activity an active business. In this case, you report income and expenses on Schedule C (Profit or Loss from Business) and are subject to the 15.3% self-employment tax (Social Security and Medicare) on your net profits.

Top Tax Write-offs for Wyoming Hosts

Maximizing deductions is key to minimizing your tax liability. Here are some common tax write-offs available to Wyoming Airbnb 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. For example, if your property was rented 50% of the year, you can deduct 50% of these expenses.
• Repairs, Maintenance & Cleaning: Costs associated with repairing and maintaining your rental property, including professional cleaning services and cleaning supplies, are deductible. Remember, repairs maintain the property; improvements add value.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property (or portions of it) over its useful life. Depreciation can be complex, and it’s often advisable to consult with a tax professional to ensure you’re taking the correct amount.