Airbnb Tax Calculator: How Much to Set Aside

Estimate how much tax to set aside from your rental profit, per year and per quarter.

Written by RentalArbitrage Admin

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A profitable rental arbitrage unit creates a tax bill that arrives long after the bookings do. This calculator estimates how much of your profit to set aside, so April doesn’t undo a good year.

How to Use It

  1. Enter yearly rental income after platform fees, the rent you paid, other deductible expenses and depreciation on furniture and equipment.
  2. Enter your federal marginal rate and state income tax rate.
  3. Say whether you provide hotel-like services. This decides whether self-employment tax is included.

Worked Example

Rental income is $49,000. Rent paid is $21,600, other expenses $12,000 and depreciation $1,500, which leaves a net profit of $13,900. With a 22% federal rate and 5% state rate, and no hotel-like services:

  • Federal income tax about $3,058, state about $695.
  • Set aside about $3,753 for the year, or about $938 a quarter.

With hotel-like services, self-employment tax adds about $1,964, and the set-aside rises to about $5,501, or about $1,375 a quarter.

What It Leaves Out

The qualified business income deduction, credits, the Social Security wage base, local income taxes and any passive loss rules. It is a savings target, not a return. Have a tax professional review your situation.

Frequently Asked Questions

Is This My Actual Tax Bill?
No. It is a rough set-aside based on your own marginal rates. Your return depends on your full income, deductions and credits.
When Does Self-Employment Tax Apply?
Generally when you provide substantial services to guests, such as daily cleaning, meals or concierge services, and the income is reported as a business. Cleaning between stays alone usually doesn't count. Ask a tax professional.
What Can I Deduct?
Ordinary and necessary costs of the rental, such as the rent you pay, utilities, cleaning, supplies, insurance, platform fees, and depreciation on furniture and equipment you own.
Do I Need to Pay Quarterly Estimated Taxes?
If you expect to owe tax that isn't covered by withholding, you may need to. The IRS estimated taxes page explains the rules.
Does This Include Occupancy Tax?
No. Occupancy and lodging taxes are collected from guests and paid to the city or state. They are separate from income tax.

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