What tax rules apply if I rent out a room in my house on a short-term basis?

Income from short-term rental of a room in your home is generally taxable under the Income Tax Act 2007, and you must declare it in your tax return, though there is a simplified standard-cost method available for some types of short-stay accommodation that can reduce the record-keeping burden by using set indicative costs instead of tracking every actual expense, subject to eligibility criteria. If your turnover from this and any other taxable activities exceeds the GST registration threshold, you may need to register for GST, and platforms may also have obligations to collect GST on behalf of some hosts under specific electronic marketplace rules. You can generally claim a proportion of related expenses, such as depreciation, insurance, cleaning and a share of household costs, based on the extent of use for the rental activity. Keep clear records of nights let and expenses, and check current Inland Revenue guidance, since the rules for short-term accommodation have been updated in recent years.