Airbnb Co-Host Tax Obligations: What You Owe the IRS

Published March 19, 2026  ·  8 min read

Co-hosting is one of the fastest-growing ways to earn income in the short-term rental space — but many co-hosts are surprised to learn that their earnings come with real tax responsibilities. Co-host income is generally self-employment income, meaning you owe both income tax and self-employment tax on your net earnings. Here is everything you need to know.

What Is an Airbnb Co-Host?

An Airbnb co-host is someone who helps a property owner manage their listing. Tasks typically include:

• Responding to guest inquiries and managing the calendar
• Coordinating check-ins and check-outs
• Overseeing cleaning and maintenance between stays
• Managing guest reviews and resolving issues
• Restocking supplies

Co-hosts are paid either a flat fee, a percentage of nightly revenue (typically 10–30%), or a combination of both. Airbnb's platform has a built-in co-host payout feature that splits payments automatically.

How Co-Host Income Is Taxed

When you provide services as a co-host, the IRS treats your earnings as self-employment income, not passive rental income. This is a critical distinction:

• Self-employment income is reported on Schedule C and is subject to SE tax (15.3% on net earnings up to the Social Security wage base, 2.9% above it)
• Passive rental income is reported on Schedule E and avoids SE tax

Because you are performing active management services rather than simply renting out property you own, your co-host income sits firmly in the self-employment category.

Does Airbnb Send a 1099 to Co-Hosts?

Yes — if you earn $600 or more through Airbnb's co-host payout feature in a calendar year, Airbnb will issue you a Form 1099-NEC (Nonemployee Compensation). This form arrives by January 31 of the following year and reports your gross co-host earnings.

If the primary host pays you directly outside of Airbnb's system — by check, Venmo, or cash — the primary host is responsible for issuing you a 1099-NEC if they pay you $600 or more. But here is the critical point: even if you do not receive a 1099, you are still required to report and pay tax on all co-hosting income. The IRS receives copies of 1099s; they also receive matching data from payment processors under separate reporting rules.

For a deeper look at how 1099 reporting works, see our guide on 1099-K explained for Airbnb hosts.

Tax Forms Co-Hosts Need to File

As a co-host, you will typically need:

• Schedule C (Form 1040) — Report gross co-host income and deduct allowable business expenses
• Schedule SE (Form 1040) — Calculate your self-employment tax owed
• Form 1040-ES — Pay quarterly estimated taxes if you expect to owe $1,000 or more for the year

Deductible Expenses for Co-Hosts

Co-hosts can deduct all "ordinary and necessary" business expenses related to their co-hosting activity. Common deductions include:

Mileage and Transportation

Every drive to the property — for check-in, cleaning oversight, maintenance coordination, or supply runs — is deductible. Use the standard IRS mileage rate (67 cents per mile in 2024; check the current rate each year). Track miles with an app like MileIQ or a simple spreadsheet log with date, destination, and purpose.

Supplies and Consumables

If you purchase welcome basket items, toiletries, coffee supplies, or other consumables for the property, these are deductible. Keep all receipts and note which property each purchase was for.

Phone and Internet

The portion of your phone bill used for co-hosting is deductible. If you estimate 40% of your phone use is for co-hosting, you can deduct 40% of the monthly bill. Be prepared to justify your allocation estimate if audited.

Software and Apps

Subscriptions to property management software (Guesty, Hospitable, etc.), dynamic pricing tools (Wheelhouse, PriceLabs), and task management apps used for co-hosting are fully deductible.

Home Office

If you manage properties remotely from a dedicated home office space, you may deduct a portion of home costs. The simplified method allows $5 per square foot up to 300 sq ft ($1,500 maximum). For more, see our home office deduction guide for Airbnb hosts.

Professional Services

Fees paid to accountants, attorneys, or business coaches specifically for your co-hosting business are deductible.

Co-Host vs. Property Manager: IRS Distinction

There is a legal and tax distinction between an informal co-host arrangement and operating as a licensed property manager. In many states, managing short-term rentals for compensation requires a real estate broker's license. Operating without one may expose you to state penalties — separate from any tax issue. Check your state's property management licensing rules if you are managing multiple properties for others.

When the Primary Host Also Pays You as an Employee

In rare cases, a primary host may choose to hire a co-host as a W-2 employee rather than a 1099 contractor. In that case:

• The primary host withholds federal income tax, Social Security, and Medicare from your paychecks
• You receive a W-2 rather than a 1099-NEC
• You do not pay SE tax (the employer pays their half of FICA)
• You report W-2 income on your 1040 as regular wages

This arrangement is unusual for co-hosting but becomes more relevant when a host operates a large portfolio and employs staff full-time.

State Income Tax for Co-Hosts

Co-host income is also subject to state income tax in most states. If you co-host properties in multiple states, you may have tax filing obligations in each state where you earn income — even if you live elsewhere. Consult a tax professional if you co-host across state lines.

Sources: Internal Revenue Service (IRS) · Internal Revenue Service (IRS) · Internal Revenue Service (IRS). This article is for informational purposes only.