Figuring taxes on Airbnb income

[Jeff Piscioniere]

Hello all and thank you in advance for any help and info you might offer.  My wife and I are new overnight vacation rental owners of a cabin in Gatlinburg, TN.  We just closed out our first month of rental (June) and I need to pay my taxes to both the state and the local municipality.  Airbnb does not allow for adding a tax rate to the property's listing (unless I'm missing something, please enlighten me!).  I owe a combined 12.75%.  Technically in my booking rate/fees the taxes are added in.  Now I need to figure out how to back track on my income to figure what it would be if the 12.75% were not added in.  Example: $1000 ending deposit for the month; what is the income before the 12.75% which should have been charged to the guest be...$870-890 approx. range???  I actually figured an equation to get it where X is the amount I'm looking for:

X + (X * .1275) = $1000

[Andy Plattner]

Luckily I found this out early on but I lost out a month as well.  All other sites do the tax thing but Airbnb does not so you have to include that in your price.  Then you have to pay your local and state.  In Texas, I have to pay the local tax which is 8.5% and State is 6%.  In your case, just take the $1000 and multiply it by .8725 (1-.1275) and that is your rent income and the difference is what you owe in taxes.