So You Want to Airbnb Your Property? Great!

Now Let’s Talk Taxes Before the Inland Revenue Has Questions.

So, you’ve decided to turn your spare room, granny flat, or entire second home into a short-term rental money-maker and listed it on Airbnb, Bookabach, Holiday Houses NZ, Bachcare (the list goes on…). Great!

But before you start counting the money in the bank, let’s talk about something far less exciting—but 100% necessary: taxes.

What Every Airbnb Host Needs to Know About Taxes (Before It’s Too Late)

1. The Taxman Is Always Watching
These days, everything is online – from bookings to payments and reviews – making it nearly impossible to hide business activity. It’s best to assume that most income must be declared, as there are very few exceptions.

2. You Can Claim Deductions (So It’s Not All Bad News)
The good news? You can claim deductions! Cleaning fees, booking site service fees, maintenance, furniture, utilities—if it helps you run your short-term rental, it’s likely deductible. Just make sure to keep your receipts. Interest on mortgages may also be deductible for the portion of the property used for the BnB. Special rules apply here, so be sure to seek advice.

3. Short-Term vs. Long-Term Rentals: The Rules Are Different
Renting your place for a few weekends a year? You might be eligible for the $4,000 exemption or minimal tax obligations. Renting more often? The rules change—especially when it comes to GST and income tax. The difference between short-term and long-term rental treatment is is important, so don’t assume one rule/size fits all.

4. If You Ignore This, Expect a Nasty Surprise
Taxes aren’t optional – and turning a blind eye can be costly. Failing to report your income can result in penalties and interest that add up fast, much like bad reviews on a poorly maintained listing. It’s far better to stay on top of things than deal with the consequences later.

Final Thought
Hosting through booking platforms can be a fantastic way to earn extra income—but if you don’t handle your tax obligations correctly, it can quickly become a financial headache.

Because the only thing worse than a nightmare guest... is an audit.

Contact our team to help you navigate the world of short-term rental taxes with confidence.