Airbnb vs. VRBO Taxes: What's Different for Hosts?

Published March 2026 · 8 min read

If you list your rental on both Airbnb and VRBO, you'll need to combine income from both platforms on your tax return — and navigate a few meaningful differences in how each platform handles 1099-K reporting, occupancy tax collection, and fee structures. The core tax treatment of rental income is the same regardless of which platform you use, but the administrative details differ enough to cause confusion at tax time.

How the 1099-K Works on Each Platform

Both Airbnb and VRBO are payment settlement entities and are therefore required to issue Form 1099-K to hosts who exceed the applicable reporting threshold. Each platform issues its own 1099-K based only on the income processed through that platform — they don't communicate with each other.

This means if you earn $15,000 on Airbnb and $8,000 on VRBO, you'll receive a 1099-K from each platform (assuming current thresholds are met) showing those respective amounts. Neither platform knows about the other's income.

For federal income tax, you must report the total: $23,000 in combined gross rental income. The fact that you received two 1099-Ks doesn't mean you file twice or create two separate Schedule E entries for the property — you create one entry for the property and combine all income and expenses for that property.

Platform Fee Differences

Both Airbnb and VRBO charge fees to hosts, but the structures differ:

Both types of platform fees are deductible rental expenses. For Airbnb, the fees appear in your transaction history. For VRBO, check your VRBO account's income and fee statement at year-end. If you pay the annual subscription model, deduct it as a business expense in the year paid.

Occupancy Tax Collection: A Key Difference

This is where the two platforms diverge most significantly for many hosts. Airbnb has an extensive network of agreements with state and local governments to collect and remit lodging taxes on your behalf. For many jurisdictions, Airbnb handles the entire occupancy tax process automatically.

VRBO's coverage is more limited. VRBO collects occupancy taxes in many jurisdictions, but the list is shorter than Airbnb's, and the specific states and cities covered differ. For any jurisdiction where VRBO doesn't automatically collect, you — the host — are responsible for collecting the tax from guests and remitting it to the appropriate tax authority.

Before assuming either platform is handling occupancy taxes for you, verify it. Check the Airbnb and VRBO help centers for up-to-date lists of jurisdictions where they collect. If your city or county isn't on the list, you need to register with the local tax authority and handle it yourself.

Direct Bookings Add Another Layer

Some hosts use Airbnb and VRBO as marketing channels but also accept direct bookings through their own website or via social media. Direct booking income is fully taxable and must be reported, but it won't appear on any 1099-K since no payment platform processed it (unless you use a payment processor like Stripe or PayPal, which may issue their own 1099-K).

Keep careful records of all direct booking income and the associated occupancy taxes you need to collect and remit. Direct bookings also mean you're handling all occupancy tax compliance yourself since no platform will do it for you.

Combining Income on Schedule E

Schedule E, Part I asks for income and expenses by property. You enter the address of each property once, then report all rental income from that property — Airbnb, VRBO, and direct bookings combined — in the "Rents received" box.

Similarly, all expenses for that property go in the corresponding expense boxes. You don't break out which expenses "belong" to Airbnb bookings vs. VRBO bookings. Cleaning costs, supplies, insurance, depreciation — these are property expenses, not platform expenses.

The only exception is platform service fees. If you want to be precise, you can track Airbnb fees and VRBO fees separately and list them both under "Other Expenses" on Schedule E. But combining them into one "Platform fees" line works just as well.

State Tax Considerations

Both platforms may collect state income tax withholding in certain states, though this is uncommon. More relevant are state lodging taxes. Even for states where Airbnb collects automatically, VRBO may not have the same agreement — meaning the same property could be fully covered for Airbnb bookings but partially or not covered for VRBO bookings. Confirm this for each state where you operate.

For hosts with properties in multiple states, the complexity increases significantly. See our guide on multi-state Airbnb taxes for more details.

Keeping Your Records Straight

With multiple platforms, organization matters more. At year-end, download your earnings summary and transaction history from each platform separately. Keep them in labeled folders (e.g., "2026 – Airbnb Income," "2026 – VRBO Income"). When calculating total gross income and total platform fees, add the figures from each platform's records.

This separation makes it easy to reconcile your records against the 1099-Ks you receive in January. If a number doesn't match, you have the detailed records to investigate why. Read our complete guide on Airbnb record keeping for the full system.

Sources: Internal Revenue Service · US Small Business Administration · US Department of the Treasury.