Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Ohio tax professional before filing.
Ohio · United States · Short-term rental taxes
Ohio Short-Term Rental Taxes
STR income in Ohio is subject to federal income tax, Ohio state income tax, and county/local lodging (bed) taxes that vary by jurisdiction.
The 30-Second Answer
- Federal income tax: Report all STR rental income on Schedule E (or Schedule C if you provide substantial services); deduct eligible expenses against gross rental income.
- Ohio state income tax: Ohio residents report net rental income on Ohio IT 1040 at a flat 2.75% for 2026 (income under ~$26,050 is exempt); Ohio follows federal treatment of rental income.
- Lodging/bed tax: Ohio counties and municipalities levy a Transient Occupancy Tax (also called a lodging or bed tax) on short-term stays — rates vary by county, commonly 3%–6% of gross rent.
- Platform collection: Airbnb and Vrbo collect and remit Ohio state sales tax and many local lodging taxes on your behalf, but you remain responsible for verifying coverage in your specific county or city.
Deductions
What Ohio STR Hosts Can Deduct
Ordinary and necessary expenses allocable to your rental activity reduce taxable income at both the federal and Ohio state level.
If you also use the property personally, expenses must be allocated between rental and personal days using the IRS mixed-use rules (IRC §280A). Ohio follows federal adjusted gross income as its starting point, so federal deductions flow through to your Ohio IT 1040.
Filing Calendar
Key Dates & Filing Calendar
Ohio individual income tax follows the federal calendar; lodging taxes are typically remitted monthly or quarterly to the county auditor.
Ohio does not require a separate state extension form — a valid federal extension automatically extends your Ohio filing deadline to October 15. However, any tax owed is still due by April 15 to avoid interest and penalties.
Ohio Department of Taxation — tax.ohio.gov/individual/who-must-file/filing-season-tip
Income Tax Treatment
Schedule E vs. Schedule C: Which Applies to Your Ohio STR?
The IRS — and by extension Ohio — taxes STR income differently depending on how actively you manage the property and what services you provide to guests.
Schedule E (Passive Rental)
Standard rental income treatment for most hosts
- Report gross rents and deduct expenses (including depreciation) on federal Schedule E; net flows to Ohio IT 1040
- Losses may be limited by passive activity rules (IRC §469); up to $25,000 loss allowance phases out above $100,000 AGI
- Self-employment tax does NOT apply to Schedule E rental income
- Ohio taxes net rental income at graduated rates (0%–2.75% for 2024)
No income ceiling
Schedule C (Active/Business)
Applies when you provide substantial services to guests
- Report income and expenses on federal Schedule C; subject to self-employment tax (~15.3% on net profit)
- Allows deduction of all ordinary business expenses; QBI deduction (IRC §199A) may apply
- Ohio taxes Schedule C net profit as business income on Ohio IT 1040
- Ohio's Business Income Deduction (BID) may allow a 3% flat rate on the first $250,000 of qualifying business income
No income ceiling
Depreciation
Federal Depreciation for Ohio STR Properties
Ohio follows federal income tax treatment; depreciation is claimed on your federal return and flows through to Ohio taxable income.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Land value is not depreciable; allocate purchase price between land and structure |
| Appliances & furniture | 5 years | May qualify for bonus depreciation or Section 179 expensing in year of purchase |
| Carpeting & flooring | 5 years | Classified as personal property if replaceable without structural work |
| Roof, HVAC, structural improvements | 27.5 years (or 15 years if land improvement) | Cost segregation study can accelerate deductions for larger properties |
Depreciation reduces your cost basis. When you sell, the IRS recaptures depreciation at up to 25% (unrecaptured Section 1250 gain). Ohio taxes capital gains as ordinary income on the IT 1040.
On sale, previously claimed depreciation is recaptured federally at up to 25%; Ohio taxes the resulting gain as ordinary income at state rates up to 2.75%.
Ohio Lodging / Bed Tax
Ohio County & Municipal Transient Occupancy Taxes
Ohio does not have a single statewide lodging tax rate; instead, counties and municipalities levy their own transient occupancy (bed) taxes on short-term stays under 30 days.
Under Ohio Revised Code §5739.08 and §5739.09, counties may levy a lodging tax. Rates vary significantly by county. The examples below illustrate common structures; always verify the current rate with your county auditor.
Total effective lodging tax burden typically ranges from ~9% to ~13%+ depending on county and city
Ohio Revised Code §5739.08–§5739.09; Logan County Auditor — logancountyohio.gov/bed-taxlodging-occupancy-tax.html
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects and remits Ohio state sales tax and many county lodging taxes directly to the state/county | Verify Airbnb's coverage for your specific county; if not covered, you must register and remit yourself |
| Vrbo/direct booking | Vrbo collects state sales tax in Ohio; host may need to remit county lodging tax directly | Register with your county auditor for a lodging tax account; file returns monthly or quarterly |
| Direct/own-website booking | Host is solely responsible for collecting and remitting all applicable taxes | Add tax line to invoices; register with Ohio Department of Taxation and county auditor |
Ohio's lodging tax applies to transient stays (generally under 30 consecutive days). Stays of 30 days or more are typically exempt. Always confirm current rates and filing requirements with your county auditor, as rates and procedures differ across Ohio's 88 counties.
Platforms
How Airbnb & Vrbo Handle Ohio Tax Reporting
Major platforms report host income to the IRS and may collect local lodging taxes, but coverage varies — hosts remain responsible for their own compliance.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Issues 1099-K if gross payments exceed IRS threshold; reports to IRS | Collects Ohio state sales tax (5.75%) and many county lodging taxes; coverage varies by county | Annual earnings summary available in host dashboard by January 31 |
| Vrbo / HomeAway | Issues 1099-K if gross payments exceed IRS threshold | Collects Ohio state sales tax; county lodging tax collection varies — check Vrbo's tax FAQ for your county | Annual earnings summary available in owner dashboard |
| Direct / Other OTAs | No automatic IRS reporting; host must self-report all income | No — host must collect and remit all state and local taxes | Host must maintain own records |
Using Multiple Platforms?
If you list on both Airbnb and Vrbo, each platform reports only its own payments. You must aggregate all income across platforms when filing your Ohio IT 1040 and federal return. Keep separate records per platform to reconcile 1099s accurately.
DAC7 / OECD Reporting
DAC7 is a European Union directive and does not apply to Ohio or US-based hosts. US platforms report under IRS rules (Form 1099-K). No DAC7 obligation exists for Ohio STR hosts.
Airbnb Help Center — airbnb.com/help/article/414; IRS Form 1099-K guidance — irs.gov
Illustrative P&L: Schedule E vs. Schedule C
Example for an Ohio STR earning $30,000/year in gross rents. Numbers are illustrative only.
Record-Keeping
Stay Audit-Ready as an Ohio STR Host
The IRS and Ohio Department of Taxation can audit returns up to 3 years back (6 years if substantial underreporting); keep these records accordingly.
| Keep | How long | Why |
|---|---|---|
| Booking records & platform statements | At least 3 years after filing | Substantiates gross rental income reported on Schedule E / Ohio IT 1040 |
| Receipts for all deductible expenses | At least 3 years after filing | Required to support deductions for repairs, cleaning, supplies, utilities, etc. |
| Depreciation schedules & property purchase records | Life of property + 3 years after sale | Needed to calculate adjusted basis and depreciation recapture on eventual sale |
| County lodging tax returns & payment confirmations | At least 4 years | County auditors can audit lodging tax compliance; proof of remittance protects against penalties |
| Personal-use log (if mixed-use property) | At least 3 years after filing | IRS §280A requires allocation of expenses between rental and personal days |
Ohio follows the federal statute of limitations for income tax audits. If you omit more than 25% of gross income, the IRS has 6 years to audit. Keep records longer if your situation is complex.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax or legal advice. Tax laws change frequently; always verify current rates and requirements with the Ohio Department of Taxation, your county auditor, and a qualified tax professional.
- Ohio Department of Taxation — Individual Filing Season Tips — tax.ohio.gov/individual/who-must-file/filing-season-tip — Ohio IT 1040 filing requirements and deadlines
- Ohio Revised Code §5739.08–§5739.09 — Authorizes county lodging taxes in Ohio; codes.ohio.gov
- Logan County Auditor — Bed Tax / Lodging Occupancy Tax — logancountyohio.gov/bed-taxlodging-occupancy-tax.html — example of county-level lodging tax administration
- Airbnb Help Center — US Tax Documents — airbnb.com/help/article/414 — 1099-K and other tax document thresholds and issuance dates
- Avalara MyLodgeTax — Ohio Vacation Rental Tax Guide — avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/ohio.html — overview of Ohio STR tax obligations
- RedAwning — Ohio Airbnb and Short-Term Rental Regulations (2025) — redawning.com/pm/post/ohio-short-term-rental-laws — city-by-city STR regulation overview
- BNBCalc — The Complete Ohio Airbnb Host Lodging Tax Guide — bnbcalc.com/blog/str-tax/airbnb-vrbo-str-ohio-tax — Ohio lodging tax breakdown by county
- IRS Publication 527 — Residential Rental Property — irs.gov/publications/p527 — federal rules for rental income, deductions, and depreciation
Questions
Frequently Asked Questions — Ohio STR Taxes
Mr Props Team
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