Airbnb & Short-Term Rental Host Tax Calculator — All 50 States + DC (2026)

The fundamental tax question for short-term rental hosts is Schedule E (passive rental income) vs. Schedule C (active business income). The distinction matters because Schedule C income is subject to self-employment tax (15.3%) while Schedule E income is not. If you provide "substantial services" to guests — daily cleaning, concierge services, meals — the IRS may classify your rental as a business subject to SE tax. Most vacation rental hosts who use cleaning services and don't provide hotel-like amenities can use Schedule E.

Depreciation is the most powerful and often overlooked deduction for rental hosts. The residential property itself is depreciated over 27.5 years. On a $400,000 property, depreciation deductions total approximately $14,545 per year — often generating a "paper loss" on Schedule E even in profitable years. Contents (furniture, appliances, linens) can be depreciated over 5–7 years, or expensed immediately under Section 179.

Operating expenses deductible against rental income include: mortgage interest (rental portion), property taxes (rental portion), homeowners insurance, HOA fees, utilities, cleaning services, Airbnb/Vrbo service fees (3%), repairs and maintenance, and supplies (toiletries, linens, kitchen consumables). For hosts who also use the property personally, expenses must be allocated between rental and personal use based on number of days.

The 14-day rule (Masters exemption) is important for infrequent hosts: if you rent your home for fewer than 15 days per year, the income is completely tax-free and deductions are not allowed. Many homeowners near major events (Super Bowl, Masters golf tournament) rent for exactly 14 days to generate tax-free income. This rule applies to vacation homes used personally for more than 14 days or 10% of rental days.