taxation

[Jana1844]

I'd like to know how taxes are collected, and from whom?  the host, the guest or both??

[Mike-And-Jane0]

@Jana1844 It depends what tax you are talking about but the host is responsible for charging all of them. If they fail to do so it is on them. Sometimes Airbnb has agreements with local/state tax authorities to collect taxes but the host still needs be sure they are doing so.

[Joan2709]

@Jana1844 

Read your other post on this...

Airbnb doesn't charge Hosts taxes...they only charge the guest the taxes...sometimes.

Since Airbnb doesn't collect sales tax and/or transient occupancy taxes in all  jurisdictions, as @Mike-And-Jane0 state, it's up the the Host to ensure all the proper taxes for a guest reservation are collected and paid properly to the taxing authority; whether by Airbnb or by the Host.

Hosts pay income tax on what they earn to the IRS, but Airbnb doesn't have anything to do with that. The only time funds would be withheld from your payout that is income related would be if you are subject to backup withholding by the IRS.

[Jana1844]

Thank you for your reply and explanation - very helpful 

[Emilie]

Hi @Jana1844, 

I hope you're well! 

Did you get a chance to see the information Mike and Joan shared? I'd love to know if they answered your question, or if you need any more clarification regarding how taxes work for hosts on the platform.

I look forward to hearing from you 🙂

Emilie

[Jana1844]

I'm still a bit confused on the tax thing.. do I need to calculate my own state and federal taxes and factor that into my rental rate? 

At one point I thought Airbnb was giving us a choice on whether or not we wanted the site to automatically collect taxes from our guests??

[Jana1844]

I'm still a bit confused on the tax thing.. do I need to calculate my own state and federal taxes and factor that into my rental rate? 

At one point I thought Airbnb was giving us a choice on whether or not we wanted the site to automatically collect taxes from our guests??

Jana