Net vs Gross Vacation Rental Income: What You Actually Keep

Four Numbers That All Get Called "Income"

Owners get confused because the platforms show several totals, and they are not the same thing.

Only the last line pays your mortgage.

What Comes Out, Line by Line

1. Lodging Taxes (Never Yours)

Guests pay lodging tax on top of the price. As of October 2026, Airbnb's help center says it collects and remits:

• New Hampshire: the 8.5% Meals and Rooms (Rentals) Tax on the listing price including cleaning and guest fees, for stays of 184 nights or shorter. The NH Department of Revenue Administration confirms the 8.5% rate for periods beginning October 1, 2021.
• Massachusetts: the 5.7% state room occupancy excise, plus any local option excise (0 to 6.5%) and, in some places, a community impact fee and other fees.
• Vermont: the 9% Meals and Rooms Tax, the 1% local option tax where it applies, and the 3% short-term rental surcharge.

Taxes collected by the platform go to the state, not to you, so leave them out of gross income entirely. You may still have your own filing and license obligations (bookings outside the platform, or state rules that require you to register). See NH lodging taxes, the Massachusetts room occupancy tax and Vermont rules and taxes.

2. Platform Fees

As of October 2026:

• Airbnb single (host-only) fee: Airbnb's help center says most hosts pay 15.5%, deducted from the payout, with remaining hosts typically paying 14% to 16%. It applies to hosts who use property management software, among others.
• Airbnb split fee: most hosts pay 3%, and guests pay a separate service fee of 14.1% to 16.5% of the booking subtotal. Airbnb says the split fee is being phased out as hosts are moved to the single fee, and once you switch you cannot switch back.
• Vrbo pay-per-booking: Vrbo's help page lists a 12% commission on the rental amount and fees you charge (cleaning, pet, boat) and describes a 3% payment processing fee on the total payment, including taxes and refundable damage deposits. Check your owner dashboard for the exact charges on your bookings.

The fee is a percentage of the subtotal, so it also comes out of your cleaning fee. Compare platforms in more detail in Airbnb vs Vrbo for owners.

3. Cleaning and Laundry

Whatever you charge guests as a cleaning fee, the cleaner, laundry and your own turnover time are real costs. In a ski home, add boot-tray mud, wet towels and wood stove ash. In a lake house, add sand, beach towels and the outdoor shower.

4. Supplies and Consumables

Toilet paper, paper towels, soap, dish tabs, trash bags, coffee, salt for the steps, propane for the grill, firewood if you include it. Small per stay, meaningful per year.

5. Utilities While Guests Are There

Guests run the heat at 72 degrees in January, take long showers and leave the AC on with the windows open. Your utility bills will be higher than they were when the house sat empty or the family used it.

6. Management

If you hire a co-host or manager, their fee comes out next. Ask what it is calculated on (gross, subtotal, or payout after platform fees) and whether cleaning is included or passed through, because the same percentage on a different base gives a different result. See how management fees work.

7. Fixed Costs of the Home

Mortgage, property tax, insurance, internet, plowing, septic and repair reserves are paid whether or not anyone books. They belong in your annual net, even if they do not show up on a single reservation.

8. Income Tax

Net rental income is taxable. Many costs above are deductible against rental income (IRS Publication 527 lists cleaning and maintenance, commissions, insurance, mortgage interest, repairs and utilities, among others). How it works for you depends on owner use and other rules; see tax basics for homeowners.

Worked Example: One Stay (Hypothetical)

These numbers are an example only, made up to show the arithmetic, for a home in New Hampshire listed on Airbnb.

A guest books 4 nights at $250 a night, with a $180 cleaning fee.

On the split fee instead, the host fee at 3% would be $35.40, for a payout of $1,144.60. That looks better, but the guest pays a separate service fee on top of $1,180, so the price the guest sees is higher. Under the host-only fee, many hosts raise the nightly rate to compensate. Compare the guest's total price, not only your payout.

The $762.10 is still not net income. If, hypothetically, this home has $36,000 a year in fixed costs (mortgage, property tax, insurance, internet, plowing, base heat), that is about $98.63 a day ($36,000 divided by 365). Four days of fixed costs is about $394.52, which brings this stay's true contribution down to about $367.58, before any management fee and before income tax. If you hire management, subtract that too, using the base your contract specifies.

How to Track Net Properly

• Keep a separate bank account and card for the rental.
• Download monthly payout reports from each platform; they show gross, fees and payout.
• Record every cost the day you pay it, including mileage for trips to the property.
• Review net monthly and by season, not just at tax time. A lake house that earns all its money in eight summer weeks should be judged on the full year.
• Use the same layout every year so you can compare.

To see how these net figures roll up into returns, read vacation rental ROI and the break-even analysis.

Where New England Host Co Fits

New England Host Co provides full-service management in Southern New Hampshire, the Lakes Region, Central Massachusetts and Southern Vermont, with co-hosting offered as a separate option. Owners keep paying license and permit fees, utilities, repairs and consumables (rebilled at cost). Pricing is quoted privately; for a free property analysis call (978) 672-4578 or use the contact page. The owner hub has the rest of this series.

FAQ

Is My Airbnb Payout My Income?

Your payout is gross income minus the platform's fee. It is not net income, because cleaning, supplies, utilities, management and the home's fixed costs still come out of it.

Do I Pay the Platform Fee on the Cleaning Fee?

Generally yes. Airbnb's host fee is calculated on the nightly price plus fees you charge, such as cleaning, and Vrbo's commission is charged on the rental amount plus fees like cleaning, pet and boat fees.

Should I Count the Lodging Tax in My Revenue?

No. When the platform collects and remits it, the tax never belongs to you. Leave it out of gross income and out of expenses.

Why Is My Net so Much Lower than the Booking Total?

The guest total includes taxes and, on the split fee, the guest service fee, none of which are yours. Then platform fees, turnover costs and fixed costs come out. Seeing the gap clearly is the point of this exercise.