Short-Term Rental Tax Calculator: Depreciation and Tax Savings Estimator
Enter property value, STR income, and tax bracket. See your annual depreciation deduction, tax savings, and effective rate.
Home in Charlotte
3 bed, 2 bath
$13.8k
Depreciation
$3.3k
Tax Saved
16%
Eff. Rate
Duplex in Memphis
4 bed, 3 bath
$18.9k
Depreciation
$4.5k
Tax Saved
14%
Eff. Rate
Condo in Phoenix
2 bed, 2 bath
$10.5k
Depreciation
$2.5k
Tax Saved
18%
Eff. Rate
Tax breakdown
Gross Income
$72,000
Deductions
-$34,000
Depreciation
-$12,000
Taxable Income
$26,000
Est. Tax
$7,800
What is an STR tax calculator?
Short-term rental income is taxable, but the deduction list is long: cleaning, supplies, insurance, repairs, management fees, platform fees, and depreciation on the property and its furnishings. This calculator applies those deductions to your gross rental income and estimates your federal and state tax liability.
It is not a substitute for a CPA. It is a way to see the approximate number before you sit down with one, so you can plan quarterly payments and avoid surprises in April.
Try the calculatorHow does the tax calculator work?
Three steps. No account, no payment info. Enter your income and expenses and see an estimated tax liability.
Enter gross rental income
Total rental income before any deductions. Include cleaning fees collected, but not security deposits that were refunded.
Add deductible expenses and property value
Operating expenses (cleaning, supplies, repairs, management, platform fees) plus the building value for depreciation. Land value is excluded.
See taxable income and estimated tax
The calculator subtracts deductions and depreciation from gross income, then applies your federal bracket and state rate to show estimated tax liability.
Why calculate STR taxes separately?
Short-term rental income has its own set of deductions, depreciation rules, and filing requirements. A generic tax calculator misses most of them. An STR-specific calculator accounts for what you actually qualify for.
Estimated tax liability
$7,800
Federal + state combined
Effective Rate
10.8%
Deductions
$46k
Quarterly
$1,950
Depreciation alone saves $3,600/year at the 22% bracket.
What most operators miss about STR taxes
The deduction list is long and the rules vary by state. Three areas account for most of the money left on the table.
Depreciation is the largest missed deduction
A $400k property (building value only) depreciates at $14,545/year over 27.5 years. Furnishings depreciate faster (5 to 7 years). Together they can offset 20% to 40% of gross rental income. Most first-time hosts do not claim depreciation at all.
Schedule C vs. Schedule E changes everything
If you provide substantial services (daily cleaning, concierge, breakfast), the IRS may classify your rental as a business (Schedule C). That adds self-employment tax (15.3%) but also opens more deduction options. Most STR operators file Schedule E.
State tax varies wildly
Some states have no income tax. Others add occupancy tax, tourism tax, or local bed tax on top of state income tax. The total tax rate on STR income ranges from under 10% to over 40% depending on where you operate.
Beyond estimates
The calculator tells you what it could earn. MagicBNB tells you what it actually did.
Connect your PMS and bank account. Every deposit gets matched against every payout. You get per-property financials from money that moved, not money that was estimated.
Bank-Reconciled P&L
Revenue rebuilt from deposits that cleared your bank, matched against payout records from your PMS. Per property, per month.
Smart Transaction Ledger
Every bank transaction auto-categorized and matched to the right property. No manual tagging, no spreadsheet reconciliation.
Channel Breakdown
See which platform (Airbnb, Vrbo, direct) actually pays more after fees. Stop guessing which channel to push.
Deal Analyzer
Run the numbers on a new property before you commit. Uses your actual portfolio data as the baseline, not market averages.
Milo AI Manager
Ask a question in plain English and get the answer from your own financial data. "Which property had the highest margin last quarter?"
Owner Statements
Branded PDF statements generated in one click. Send them to property owners or keep them for your own records.
More free STR calculators
This calculator estimates your tax liability. These tackle the rest of your numbers.
Frequently asked questions
Do I have to pay taxes on Airbnb income?
Yes. Rental income from short-term rentals is taxable at the federal level and in most states. Airbnb reports your gross earnings to the IRS on a 1099-K if you exceed the reporting threshold. You are responsible for reporting the income regardless of whether you receive a 1099.
What expenses can I deduct from STR income?
Cleaning fees, supplies, insurance, repairs, maintenance, property management fees, platform fees, utilities, internet, mortgage interest, property taxes, and depreciation on the building and furnishings. The deduction list is long, and most operators leave money on the table by missing depreciation and supply costs.
How does depreciation work for short-term rentals?
Residential rental property depreciates over 27.5 years using the straight-line method. Only the building value counts (not the land). A $400k property with $100k land value gives you $10,909/year in depreciation. Furnishings depreciate faster, typically over 5 to 7 years, and can be deducted using bonus depreciation in many cases.
Should I file Schedule C or Schedule E?
Most STR operators file Schedule E (passive rental income). If you provide substantial services to guests (daily cleaning, concierge, meals), the IRS may classify your rental as a business, which goes on Schedule C. Schedule C means self-employment tax (an additional 15.3%) but also opens more deduction options. Consult a CPA if your operation includes significant services.
Do I need to make quarterly estimated tax payments?
If you expect to owe $1,000 or more in federal tax for the year after subtracting withholding and credits, you are required to make quarterly estimated payments. Missing a quarterly payment triggers an underpayment penalty even if you pay the full amount by April 15.
How does MagicBNB help with tax preparation?
MagicBNB auto-categorizes every bank transaction by property and expense type. At tax time you have a clean ledger of income and deductions per property, sorted by category, ready to hand to your CPA or plug into tax software. No spreadsheet assembly required.
Your CPA needs real income numbers, not estimates.
MagicBNB reconciles every deposit against your PMS payouts, per property, so your tax prep starts from facts. 14 days free.
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