A Host’s Guide to Vrbo Taxes in the United States – Host Tools

It’s that time of year: we’re looking at the books, trying to find all of our deductions, and putting together everything we collected from the las year. Yep, it’s tax season. While nobody likes doing their taxes, it’s important we stay on top of this necessary part of running a short-term rental business. This brief guide will break down the basics of Vrbo taxes and what you need to know to stay on top of your business.

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What is the Vrbo Lodging tax?

First things first: what exactly is the Vrbo Lodging tax? The specific lodging tax for your property will vary by city, county, and state. Regardless of where your listing is located, you’ll be responsible for some type of lodging tax. Typically, these lodging taxes range anywhere betwen 6% and 18%. You may also hear this tax referred to as stay tax, occupancy tax, room tax, sales tax, tourist tax, or hotel tax. It just depends on where you’re from! However, it’s the guest who pays these taxes. Hosts are just the ones responsible for remitting them.

What tax documents do I need?

When you register to host on Vrbo, you submit your tax information from the get-go. Depending on where your listing is located, you may need to apply for and receive a short-term rental permit or license. Remember, you may need to register with both the city and the state your home is located in.

How do I collect Vrbo taxes from guests?

Typically, these Vrbo taxes are applied when a guest books a stay with you. In many places, Vrbo has an agreement with the local tax authorities to collect and remit these taxes on behalf of the host (meaning you don’t have to do anything!). However, there are places around the world, often in Europe, where the host is responsible for submitting what is known as the VAT tax.

How can I lower my taxes?

You are still responsible for a variety of income taxes as a host. Deductions are your friend. Think about all of the operating expenses to keep your business up and running. Many of those can be listed as a deduction. Of course, it’s always best to consult with a tax professional about what is considered a valid tax deduction.

Luckily, this isn’t the industry’s first rodeo. There are a wide variety of tools available to help hosts easily do their Vrbo taxes. Check out options like the ones below:

Final thoughts

While tax season is just around the corner, it doesn’t have to be scary. Consult with a trusted tax professional, follow our guide, and you’ll be all good to go!

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!