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How is short-term rental income taxed for US hosts?

Answer6 min readBy HostCalmlyUpdated Nov 2, 2026How we check factsReport an error

Short answer

Rent a home you also live in for fewer than 15 days in a year and you don't report that rent or deduct its costs (IRC 280A(g), IRS Publication 527). Rent it longer and all of it is income, cleaning fees included, usually on Schedule E, or on Schedule C if you provide substantial services such as regular cleaning or changing linen. Platforms file Form 1099-K above $20,000 in more than 200 transactions, but you report all income either way. This isn't tax advice; check with a CPA or EA.

This isn't tax advice; check with a CPA or EA. Everything below is quoted or summarized from IRS pages and platform help pages checked on Nov 2, 2026, with each source listed at the end. Your own answer depends on your days, your services and your state.

The 14-day rule

Fewer than 15 rental days in a year, in a home you also use yourself, and the rent stays off your return. The tax code says it in IRC section 280A(g) (opens in a new tab): if a dwelling unit is used by the taxpayer as a residence and is "actually rented for less than 15 days during the taxable year," then no rental deduction is allowed and "the income derived from such use for the taxable year shall not be included in the gross income."

IRS Publication 527 (2025) (opens in a new tab) puts it in plain terms: "You aren't required to report the rental income and rental expenses from this activity." Mortgage interest and property taxes on the home are still "reported as normally allowed on Schedule A."

Two different counts are in play, and both have to fit:

TestWhat it countsSource
You use the place as a homePersonal-use days of more than the greater of 14 days or 10% of the days it's rented at a fair rental pricePublication 527; Topic no. 415 (opens in a new tab)
Minimal rental useRented for fewer than 15 days in the yearIRC 280A(g); Publication 527

Days of personal use include days you or a co-owner use the place, days a family member uses it (unless it's their main home and they pay a fair rental price) and days anyone rents it for less than a fair price, according to Publication 527. A dedicated rental that nobody lives in fails the first test, so the 14-day rule doesn't apply to it.

Schedule E or Schedule C

Most rental income goes on Schedule E. Publication 527: "If you rent buildings, rooms, or apartments, and provide basic services such as heat and light, trash collection, etc., you normally report your rental income and expenses on Schedule E, Part I."

Services change the form. Publication 527 again: "If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C." It adds that substantial services "don't include the furnishing of heat and light, cleaning of public areas, trash collection, etc.," and that on Schedule C "you may have to pay self-employment tax on your rental income using Schedule SE."

The gray area for hosts is the clean between stays. Publication 527 lists regular cleaning and changing linen as examples and points to Publication 334 for more, but it doesn't say whether a turnover clean between guests counts on its own. Bring that question, with a list of what you provide during a stay (daily cleaning, breakfast, tours, linen changes mid-stay), to your CPA or EA.

Form 1099-K: $20,000 and 200 transactions

The reporting threshold is back where it was before 2021. The IRS page Understanding your Form 1099-K (opens in a new tab), updated Oct 28, 2026, says a payment app or online marketplace "is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 in more than 200 transactions. However, they may send you a Form 1099-K with lower amounts and/or transactions."

The change came from the One Big Beautiful Bill Act. In news release IR-2025-107 (opens in a new tab) (Oct 23, 2025), the IRS says the law "retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021." Its Form 1099-K FAQs (opens in a new tab) carry the same wording.

Three things to know before the form arrives:

  • No form doesn't mean no tax. The same IRS page: "No matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return."
  • Box 1a is gross. The IRS page What to do with Form 1099-K (opens in a new tab) says the gross payment amount "isn't adjusted for any" fees, credits, refunds or discounts, and that you can deduct them from the gross amount. Airbnb's US tax documents page (opens in a new tab) says its reported amounts are gross reservation totals, including cleaning fees and pass-through taxes, before Airbnb's fees are deducted.
  • Some states use a lower threshold. Airbnb's same page lists the states with their own lower filing thresholds and says that if you meet a state's threshold but not the federal one, it files the 1099-K with that state only.

Cleaning fees count as rental income

Publication 527 defines rental income broadly: "Rental income is any payment you receive for the use or occupation of property. It isn't limited to amounts you receive as normal rental payments." The guest's cleaning fee is part of what they pay to stay, so it belongs in gross rental income, and what you pay your cleaner is a separate expense. Publication 527 doesn't name cleaning fees, but Airbnb's 1099-K totals include them, so leaving the fee out of income leaves your return short of the form.

Hypothetical example: 3 nights at $150 plus a $90 cleaning fee is $540 of rental income. A 15.5% host fee (the rate most Airbnb hosts on the single fee pay, per what Airbnb takes from hosts) is $83.70, an expense. The $75 you pay the cleaner is another expense. Report $540 in, $158.70 out; reporting the $456.30 payout as income would undercount what the 1099-K shows.

For the bookkeeping side, see is the cleaning fee income. For the price itself, see how to set your cleaning fee.

Occupancy and lodging taxes

Lodging taxes are a separate layer, set by states, counties and cities, and the federal return doesn't cover them. Platforms collect them in many places but not all:

  • Airbnb lists the areas where it collects and remits taxes (opens in a new tab) for hosts. Even there, hosts "are responsible for assessing all other tax obligations."
  • Vrbo says it "collects and remits lodging tax in required jurisdictions" and that "You're also responsible for collecting and remitting lodging taxes when we're not liable to do so" (Vrbo help (opens in a new tab)).
  • On direct bookings no platform is in the middle, so collecting and filing sit with you.

Check the platform's list for your exact address, then your state's department of revenue and your city or county for any local tax the platform doesn't collect, and ask them whether you need to register before you collect.

What to bring to your CPA or EA

  1. Your calendar for the year: days rented at a fair price and days of personal use.
  2. Every Form 1099-K and each platform's annual earnings report.
  3. Payout breakdowns by stay: nightly total, cleaning fee, platform fee and any taxes the platform collected.
  4. Expenses with receipts: cleaner pay, supplies, software, utilities, insurance and repairs.
  5. A list of the services you provide during stays, for the Schedule E or C question.

Our income and expense spreadsheet keeps stays, fees and pass-through taxes in separate columns, which is the shape these lists need.

Sources

Checked Nov 2, 2026:

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Frequently asked questions

Do I have to report rental income if I don't get a Form 1099-K?

Yes. The IRS says that whether or not you receive a Form 1099-K, you must still report any income on your tax return. The form is a report to the IRS, and the threshold decides only whether the platform has to send one.

Can I rent my home for two weeks a year tax-free?

If you also use it as your home and rent it for fewer than 15 days in the year, IRC 280A(g) says the rent isn't included in your gross income, and you can't deduct rental expenses for those days. At 15 days or more, all of the rent is reportable.

Is the cleaning fee taxable income?

It's part of your gross rental income: Publication 527 defines rental income as any payment for the use or occupation of property, and platform 1099-K totals include cleaning fees. What you pay your cleaner is a separate expense. Ask a CPA or EA how it nets out on your return.

Does Airbnb collect occupancy tax for me everywhere?

No. Airbnb collects and remits in the areas it lists, and hosts remain responsible for all other tax obligations. Vrbo says the same about places where it isn't liable. Check your address against each platform's list and your state and local tax offices.

Is my rental on Schedule E or Schedule C?

Usually Schedule E. Publication 527 sends it to Schedule C when you provide substantial services primarily for the guest's convenience, such as regular cleaning, changing linen or maid service, and Schedule C income may owe self-employment tax. This isn't tax advice; check with a CPA or EA.

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