# Taxable revenue

Source: https://developer.avalara.com/products/mylodge/integration-guides/mylodgetax/lew3742544664171/

Guide: MyLodgeTax

# Taxable revenue

Learn what taxable revenue includes and how it differs from total revenue to ensure accurate lodging tax reporting.

Taxable revenue is the portion of your rental income used to calculate lodging taxes. Understanding what to include or exclude helps ensure accurate reporting and compliance across jurisdictions.

Different transaction types affect how taxable revenue is calculated. This section explains how to handle each type.

## Taxable revenue versus total revenue

Taxable revenue is the rent and mandatory fees that your guest pays. It doesn’t include taxes that your guest pays.

Total revenue is the rent, mandatory fees, and taxes that your guest pays.

If you rent through a marketplace, you'll find it easier to report your total revenue rather than your taxable revenue.

## Deposits

Hosts use deposits on short-term rentals to cover situations such as guest or pet damages and lost rent from a late cancellation.

If you collect a deposit and return it in full, you don’t need to report it as lodging revenue.

If you keep all or part of a deposit, report the portion you keep as taxable lodging revenue.

## Advanced payments

If a guest makes an advanced payment for a future booking, report this as taxable revenue when you collect it by your reporting deadline.

If you wait to report the advanced payment until the booking date, tax rates in your area may change. If the rate goes up and you didn't collect enough money to cover it, you'll have to pay the difference.