Turo Host Taxes in Wyoming - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Turo Hosts in Wyoming

With the vast, open roads of Wyoming beckoning adventurers, renting out a vehicle through Turo can be a lucrative venture. However, alongside the earnings comes the responsibility of accurate tax reporting. As a Turo host in Wyoming, understanding your federal and state tax obligations is crucial for a smooth tax season.

The IRS requires all Turo hosts to report income earned on Schedule C (Profit or Loss From Business) as self-employment income. This means not only income tax, but also self-employment tax – covering both Social Security and Medicare – will be due on net earnings exceeding $400. Proper record-keeping throughout the year is essential to maximize deductions and minimize your tax liability.

How Wyoming Handles Gig Worker Taxes

Wyoming stands out as a particularly tax-friendly state for individuals, notably not having a state income tax. This means Turo hosts in the Cowboy State won’t face state income tax forms or payments related to their rental income. However, this does not exempt you from federal tax obligations. The IRS still requires reporting of all income, regardless of state tax laws. Many Wyoming residents, particularly those in tourism-heavy areas like Jackson Hole and Cody, are increasingly participating in the gig economy, and the IRS is actively monitoring income reporting from platforms like Turo. While Wyoming doesn’t have a state income tax, it does collect sales tax on rentals, which Turo generally handles on your behalf. It’s important to verify Turo’s sales tax collection procedures to ensure compliance. Furthermore, Wyoming’s business-friendly environment doesn’t negate the need for meticulous record-keeping; accurate documentation of income and expenses is paramount for a successful tax filing. For more information on Wyoming’s business regulations, please visit the Wyoming Secretary of State’s website: Wyoming Secretary of State.

Top Tax Deductions for Wyoming Drivers

• Standard Mileage: The most popular deduction for Turo hosts. The 2025 rate is 70 cents per mile. Given Wyoming’s expansive geography and the distances often traveled by renters exploring Yellowstone or the Bighorn Mountains, this rate can significantly reduce taxable income.
• Tolls & Parking: While Wyoming doesn’t have extensive toll roads, any parking fees incurred for business purposes (picking up/dropping off renters, vehicle maintenance) are deductible.
• Phone & Data Plan: The portion of your phone and data plan used for managing your Turo business is deductible. Keep records of business-related calls and data usage.
• Vehicle-Related Costs: Expenses like car wash supplies to keep your vehicle rental-ready, phone mounts for renters, or even small amenities like charging cables 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 greatest tax benefit.

Understanding the 15.3% Self-Employment Tax

As a Turo host, you are considered self-employed. This means you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, totaling 15.3%. Turo and other rental platforms do not withhold these taxes from your earnings, so it’s crucial to plan for this expense when filing your federal taxes. You may be able to deduct one-half of your self-employment tax from your gross income.