Airbnb Tax Calculator 2026 β€” Short-Term Rental Income

Calculate taxes on your Airbnb or short-term rental income. Includes 14-day rule check, Schedule C vs Schedule E comparison, and depreciation deductions.

$
Total Airbnb payouts before expenses
14 nights or fewer = tax-free income
Nights you used the property personally
$
Cleaning, supplies, maintenance, insurance, utilities
$
Allocated rental portion of mortgage interest
$
Building value only β€” exclude land value
$
SE tax applies to Schedule C only
%
$0
Total Tax on Rental
$0
Gross Rental Income
$0
Net Taxable Rental Income
0%
Effective Tax Rate on Rental

Rental Income Tax Breakdown

How Airbnb Income Is Taxed

The IRS taxes short-term rental income β€” but the rules depend on how many days you rent. If you rent for 14 days or fewer, the income is completely tax-free (the "Masters exemption"). For longer rental periods, you must report the income on either Schedule E or Schedule C.

Schedule E (passive rental) is for hosts who rent without providing substantial services. No self-employment tax. The $25,000 passive loss allowance lets you deduct up to $25K in rental losses against regular income if your AGI is under $100K (phasing out to $150K).

Schedule C applies when you run your rental like a hotel β€” daily cleaning, meals, or concierge services. Self-employment tax (15.3%) applies to net profit, which significantly increases your tax burden.

The Formula

Rental Allocation % = Rental Nights / (Rental Nights + Personal Nights)
Deductible Expenses = Total Expenses Γ— Rental Allocation %
Depreciation = Property Building Value / 27.5
Net Rental Income = Gross Income βˆ’ Deductible Expenses βˆ’ Mortgage Interest βˆ’ Depreciation

Schedule E: Pay income tax only on Net Rental Income
Schedule C: Pay income tax + SE tax (15.3%) on Net Rental Income

Example

60 nights rented, 30 nights personal use, $30K income, $8K expenses, $275K property, $75K other income (Single):
Rental allocation: 60 / (60+30) = 66.7%
Deductible expenses: $8,000 Γ— 66.7% = $5,333
Depreciation: $275,000 / 27.5 = $10,000 Γ— 66.7% = $6,667
Mortgage interest (rental): $6,000 Γ— 66.7% = $4,000
Net rental income: $30,000 βˆ’ $5,333 βˆ’ $4,000 βˆ’ $6,667 = $14,000
Federal income tax (Schedule E, ~22% marginal): ~$3,080
Total tax: ~$3,900 with state tax
Extended

14-Day Rule Analyzer

See if you qualify for tax-free rental income, or compare 14-night limit vs full rental tax liability

The 14-day rule is one of the most powerful tax strategies for occasional Airbnb hosts. See exactly how it applies to your situation.

Tax Impact at Different Rental Night Levels

Nights Rented Estimated Income Net Taxable Federal Tax SE Tax Total Tax Keep After Tax
14-Day Rule: Revenue Lost vs Tax Saved

Frequently Asked Questions

What is the 14-day rule for short-term rentals?
Under IRS rules, if you rent your property for 14 days or fewer during the year, the rental income is completely tax-free and does not need to be reported on your tax return. This is sometimes called the "Masters exemption" because homeowners near the Masters golf tournament famously use it. However, you also cannot deduct any rental expenses β€” the property is treated as a personal residence.
Is Airbnb income reported on Schedule C or Schedule E?
It depends on the services you provide. Schedule E (passive rental) applies when you simply rent the space without substantial services. Schedule C (active business income, subject to self-employment tax) applies when you provide hotel-like services such as daily cleaning, concierge services, or meals. Most standard Airbnb hosts with occasional cleaning use Schedule E, but hosts who run their rental like a hotel business typically use Schedule C.
Can I deduct depreciation on my Airbnb property?
Yes. For rental property, residential real estate is depreciated over 27.5 years using straight-line depreciation. If your property is worth $275,000 (excluding land), your annual depreciation deduction is $10,000 ($275,000 / 27.5). Depreciation significantly reduces taxable rental income but must be recaptured at 25% when you sell the property.
What is the $25,000 passive activity loss allowance?
If you actively participate in a rental activity, you may deduct up to $25,000 of rental losses against other income (wages, etc.). This allowance phases out at $100 of income over $100,000 AGI and disappears completely at $150,000 AGI. To qualify, you must own at least 10% of the property and make management decisions such as approving tenants and setting rental terms.
How does the personal use allocation affect my deductions?
When you use a vacation property personally and also rent it, you must allocate expenses between personal and rental use. The IRS method allocates based on rental days / total days used. If you rented 60 days and used personally 30 days (90 total days), 67% of expenses are deductible rental expenses. Mortgage interest and property taxes for personal-use days go on Schedule A instead.

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