Airbnb 1099-K Reporting Threshold 2025–2026: What Hosts Must Know

For tax years 2025 and 2026, the federal 1099-K reporting threshold is back to more than $20,000 in gross payments and more than 200 transactions per platform. The One Big Beautiful Bill Act (OBBBA), signed in July 2025, retroactively repealed the American Rescue Plan Act's $600 threshold and restored the original standard — a change the IRS has confirmed in its 1099-K FAQs. This means Airbnb, VRBO, and other third-party settlement platforms are required to report your gross payments to the IRS — and send you a copy — only if you exceed both prongs. Your obligation to report all income is unchanged regardless of the threshold.

The History of 1099-K Threshold Changes

Understanding the threshold confusion requires a brief history:

The American Rescue Plan Act of 2021 (ARPA) changed the 1099-K threshold to $600 with no minimum transaction count. This would have dramatically expanded 1099-K reporting to many more small operators. However, the IRS repeatedly delayed implementation, citing concerns about taxpayer confusion and system readiness, and applied a $5,000 transition threshold for 2024. Then the One Big Beautiful Bill Act, signed July 4, 2025, retroactively repealed the ARPA change altogether — restoring the original $20,000-and-200-transaction threshold for 2025 and all later years.

What the Restored $20,000/200 Threshold Means for STR Hosts

In practical terms for 2026:

• If your Airbnb gross payouts (before host fees) exceed $20,000 and you have more than 200 transactions, Airbnb must issue a 1099-K and report to the IRS
• If you fall short of either prong on a given platform, that platform is not federally required to issue a 1099-K — though some platforms choose to issue them at lower amounts anyway
• The threshold applies per platform — your Airbnb and VRBO 1099-Ks are separate
• The $20,000 is gross transactions, not net payouts
• The threshold applies only to third-party settlement organizations — payment-card transactions have no threshold and are reportable from the first dollar

State-Level Thresholds: A Patchwork

Several states have set their own 1099-K reporting thresholds that are lower than the federal threshold. As of 2026, states including Maryland, Massachusetts, Vermont, Virginia, and others require 1099-K reporting at $600 or lower transaction thresholds. If you're in one of these states, you may receive a state 1099-K even without a federal one.

This creates a compliance wrinkle: your platform may issue state-specific forms with your state's tax authority but not a federal form. Keep all 1099-K forms you receive, whether federal or state, for your records.

How to Stay Compliant Regardless of the Threshold

The threshold changes create a simple, clear best practice: report all rental income, always, from every source, regardless of whether any 1099-K was issued. This is both legally required and the only safe approach — the threshold has changed multiple times in five years, states set their own lower thresholds, and some platforms issue 1099-Ks below the federal minimum anyway.

• Track every booking: Maintain records of all income received from every platform and directly booked guests
• Download year-end summaries: Pull transaction history from every platform you used
• Report gross income, deduct fees: Always start with gross transaction amounts, then deduct platform fees as an expense
• Keep records regardless of 1099-K receipt: Your documentation requirement doesn't disappear because you're below the threshold

Disclaimer

This article is for informational purposes and does not constitute tax, legal, or financial advice. Tax rules and thresholds are subject to change and may have been updated since publication. Always verify current requirements at irs.gov and consult a qualified CPA or tax professional before filing.