Airbnb Tax Guide 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Airbnb allows UK property owners and tenants to rent out rooms or entire properties to guests on a short-term basis. The UK has specific tax reliefs for property income, including the Rent a Room scheme for live-in hosts and the property allowance for other letting arrangements.
How Much Tax Will You Pay on Airbnb Income?
As a self-employed Airbnb worker you pay Income Tax and Class 4 National Insurance on your profits — not your gross earnings. The £1,000 trading allowance means the first £1,000 of income is tax-free. Above that, you deduct either the allowance or your actual expenses, whichever is higher, to arrive at your taxable profit. Use our side hustle tax calculator to get an instant estimate for 2026/27.
Basic rate taxpayer
20% + 9%
Income Tax + Class 4 NI on profit above £12,570
Higher rate taxpayer
40% + 9%
On profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
Allowable Expense Deductions for Airbnb
These expenses reduce your taxable profit. Keep receipts for all claims.
Tax Tips for Airbnb Workers
- If you rent a room in your main home, you may qualify for the Rent a Room scheme, which gives you £7,500 tax-free income per year.
- Professional photos and a well-written listing significantly increase bookings — Airbnb offers free professional photography in some areas.
- Check your mortgage, leasehold, and insurance terms before hosting — many require you to notify or get permission for short-term lets.
- In London, you are generally limited to 90 nights per year for entire property lets without planning permission.
Frequently Asked Questions
Do I pay tax on Airbnb income?▾
Yes, Airbnb income is taxable. If you are renting a room in your main home, you may be able to use the Rent a Room scheme to earn up to £7,500 tax-free. If you rent out an entire property, you can use the £1,000 property allowance, or deduct actual expenses from your rental income. You report property income on your Self Assessment tax return.
What is the Rent a Room scheme?▾
The Rent a Room scheme lets you earn up to £7,500 per tax year tax-free from letting a furnished room in your main home. This applies to Airbnb hosting if you live in the property. If your income exceeds £7,500, you can choose to either deduct the £7,500 allowance from your total income, or calculate your profit using actual expenses — whichever is more beneficial.
Does Airbnb report my income to HMRC?▾
Yes. Under the OECD platform reporting rules, Airbnb is required to report host income data to HMRC. Additionally, HMRC already has data-sharing agreements with Airbnb and other property platforms. You should always declare your Airbnb income on your Self Assessment tax return.
Related Tools & Guides
Benefits Calculator
Low Airbnb earnings? Check Universal Credit and other benefit entitlements.
Take-Home Pay Calculator
Also have a PAYE job? See your combined income after all deductions.
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