Skip to main content

You may need to pay tax on rental income you receive from private boarders or home-stay students.

If your income from boarders or home-stay students is higher than your total costs you need to pay tax on the difference.

What is a boarder or home-stay student?

A boarder or home-stay student rents a room in a private home. They receive meals and other care and services as part of their rent.

They are different to flatmates who share a house, expenses and chores. Usually one flatmate will be the tenancy holder.

Working out your costs

There are two different methods to work out your costs in hosting boarders or home-stay students:

  • the standard cost method
  • the actual cost method.