Every Tax Deduction Available to Airbnb Hosts in 2026

Short-term rental investing has a tax profile unlike almost any other asset class. Done right, a well-run Airbnb generating $60,000 a year in gross revenue can produce a tax loss on paper while generating real cash in your pocket — and that paper loss can offset your W-2 income if you qualify for the STR tax loophole. The foundation of this strategy is knowing every deduction you're entitled to and making sure you're claiming all of them.

The Big Three: Depreciation, Mortgage Interest, and Property Taxes

Depreciation is almost always your largest deduction. Under MACRS, residential property depreciates over 27.5 years. But with cost segregation, components like furnishings (5-year), appliances (5-year), and land improvements like patios and driveways (15-year) can be accelerated significantly — and with 100% bonus depreciation now permanent (post-OBBBA), short-life components can be fully expensed in year one.

Mortgage interest is fully deductible for rental properties against rental income. Unlike your primary residence (where the TCJA capped the deduction at $750,000 of acquisition debt), rental property mortgage interest has no cap when the property is used exclusively as a rental.

Property taxes are fully deductible as a rental expense on Schedule E. The $10,000 SALT cap only applies to personal-use property; rental property taxes are deducted as a business expense, not an itemized deduction.

Operating Expenses

• Platform fees: Airbnb, VRBO, and Booking.com host fees (typically 3–5% of gross bookings) are fully deductible
• Property management: Management fees paid to a co-host or property management company are deductible — usually 20–30% of gross revenue
• Cleaning fees: Cleaning costs you pay (whether to a service or a direct contractor) are deductible; fees collected from guests and passed through are netted against income
• Supplies: Toiletries, linens, paper products, and consumables restocked between stays are deductible
• Utilities: Electricity, gas, water, internet, and cable paid for by the host and included in the rental are deductible
• Insurance: Short-term rental insurance (including Airbnb AirCover supplements or standalone STR policies) is fully deductible
• Repairs and maintenance: Qualifying repairs are immediately deductible; improvements must be capitalized (see Repairs vs. Improvements)
• HOA fees: If your STR is in a community with HOA dues, those fees are deductible to the extent allocable to the rental

Professional and Administrative Expenses

• CPA and tax preparation: Fees paid to your accountant for preparing Schedule E, the cost seg analysis, and any business entity returns
• Legal fees: Lease agreements, entity formation, and landlord-tenant legal matters
• Bookkeeping: Software (QuickBooks, Stessa, Wave) and any bookkeeping services
• Marketing: Professional photography, listing optimization services, direct booking website costs
• Bank fees: Business checking account fees, merchant processing fees
• Education: Books, courses, and subscriptions related to STR investing and tax strategy (see IRS guidance on investment education deductibility)

Travel and Home Office

Travel to your rental property for inspection, maintenance, or management is deductible. This includes mileage (at the IRS standard mileage rate), flights, lodging, and meals (at 50%) when the primary purpose of the trip is rental management.

If you manage your STR from a dedicated home office space, you may be able to deduct a proportionate share of your home expenses. This is more complex to substantiate and often not worth the audit exposure unless you have a clearly dedicated office space.

The Deduction You're Probably Missing: Cost Segregation

Most STR hosts claim the deductions above without issue. The one that gets missed most often — and generates the largest dollar value — is cost segregation. A properly structured study can accelerate $50,000–$200,000+ of depreciation into your first year of ownership, turning a modest paper profit into a substantial paper loss.