Calculate your Airbnb rental income tax, allowable expenses, and annual take-home pay
Rent-a-Room Relief: If you rent a room in your own home, the first £7,500/year is tax-free under the Rent-a-Room Scheme. Enter gross Airbnb income and tick the Rent-a-Room option if applicable.
How Is Airbnb Income Taxed in the UK?
Airbnb income is taxable as property income or self-employment income depending on the level of services provided. Most hosts pay Income Tax on profit above the Personal Allowance (£12,570).
Airbnb Allowable Expenses UK 2026
- Cleaning and laundry costs
- Utility bills (proportion used by guests)
- Airbnb host fees (approx. 3%)
- Furniture and furnishings (replacement only)
- Insurance (specialist short-let cover)
- Mortgage interest (restricted to 20% tax credit)
- Repairs and maintenance
Furnished Holiday Lettings (FHL) Rules 2026
The FHL regime was abolished from April 2025. Airbnb income is now taxed as standard property income. You can no longer claim capital allowances or use FHL profits for pension contributions.
Key Tax Dates
- 31 January — Self Assessment + payment deadline
- 5 October — Register for Self Assessment
- 31 July — Second Payment on Account
Frequently Asked Questions
Do I need to register for Self Assessment as a Airbnb worker?
Yes. If your Airbnb income exceeds £1,000 in a tax year you must register for Self Assessment by 5 October following that tax year.
What is the Personal Allowance for 2026?
The Personal Allowance for 2025–26 is £12,570. You pay no Income Tax on earnings below this threshold.
Do I pay National Insurance as a Airbnb worker?
Yes. Self-employed workers pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above £50,270. Class 2 NI was abolished from April 2024.
Can I use the Trading Allowance for Airbnb income?
Yes. The Trading Allowance of £1,000 can be deducted instead of actual expenses if your expenses are lower than £1,000 or for simplicity.
When is the Self Assessment deadline?
The online Self Assessment deadline is 31 January. You must also make your first Payment on Account by 31 January and the second by 31 July.