The simple tax guide for backyard beekeepers

Quick note: This guide is for educational purposes and should not be considered tax, legal or financial advice. Every beekeeper’s situation is different, and state/county laws around property tax, agricultural classification, and deductions vary, so always double-check and verify with your state’s most recent assessor info. We also have a helpful chart later on in this guide.

You started keeping bees because you love them. Not because you wanted to deal with taxes.

But now you're selling jars to friends, coworkers, maybe at a farmers market. Someone asks for Venmo. You wonder: Do I need to report this? Can I write off my equipment?

The answer is simpler than you think.

This guide breaks down the essentials for small-scale beekeepers with 1–20 hives: how to classify your operation, what deductions matter most, and how to check if your bees might qualify your land for agricultural use property tax savings.

No complicated phase-outs. No technical jargon. Just the essentials so you can file your taxes correctly and keep more money for your bees.

The one questions that matters - hobby or business?

The IRS cares about this because it determines whether you can deduct expenses.

Hobby: You can't deduct expenses. You pay taxes on all income.

Business: You deduct expenses. You only pay taxes on profit.

How to know which one you are:

You're probably a business if:

• You're trying to make a profit (even if you're not there yet)
• You keep some kind of records (even basic ones)
• You're learning and improving (took a class, joined a club, upgraded equipment)

It’s probably a hobby if:

• You only sell honey occasionally to cover some costs
• You're learning and improving (took a class, joined a club, upgraded equipment)

Why this matters: an example

Let’s say Sarah keeps 4 hives. 

This year:

• Sold $1,600 in honey at farmers market
• Spent $2,100 on equipment and supplies
• Net: Lost $500

If hobby: Owes ~$350 in taxes on the $1,600 income (even though she lost money overall)

If business: Owes $0 in taxes (no profit = no tax)

The difference: $350

The "3 of 5 Years" rule

The IRS presumes you're a business if you make a profit in 3 out of 5 years. But you don't have to hit this immediately - most new beekeepers lose money years 1-3 while buying equipment.

What helps show you're a business:

• Separate bank account for beekeeping (even free checking works)
• Any kind of sales records (spreadsheet, notebook, even Venmo history)
• Evidence you're learning (class certificate, association membership)

What you don't need:

• A business license (nice to have, not required for taxes)
• An LLC (completely optional, usually only if you’re selling large amounts of honey or other products derived from beeswax or honey)
• A business plan (helpful but not required)
• Fancy accounting software (a simple spreadsheet is fine)

 

The five deductions that actually matter

Focus on these. Ignore everything else.

1. Equipment you buy

Simple rule: If you buy it for beekeeping and use it this year, you can deduct it.

What counts:

• Hive boxes, frames, foundation
• Extractor, heated knife
• Protective gear (suits, veils, gloves)
• Queens and package bees
• Feeders, tools, smoker

How it works: You can deduct the full purchase price in the year you buy it. No complicated depreciation schedules.

Example: Buy a $400 extractor in December and use it once before December 31st? Deduct all $400 on this year's taxes.

2. Supplies you use

These deduct right away:

• Treatments (varroa strips, medications)
• Feed (sugar, fondant, pollen patties)
• Jars, labels, packaging
• Smoker fuel, foundation wax

December tip: If you'll need jars for spring harvest, buy them in December and deduct them this year.

3. Classes and education

If you're already beekeeping, classes are deductible:

• Master Beekeeper courses
• Queen rearing workshops
• Varroa management seminars
• State beekeeping conference (including travel, hotel, half your meals)
• Association dues
• Books and online courses

Not deductible: Your very first beginner class before you started (that's a personal expense, not a business improvement)

4. Basic business costs

The everyday stuff:

• Farmers market booth fees
• Website hosting (if you have one)
• Business insurance
• Mileage to off-site apiaries (70 cents per mile in 2025)

About mileage: Only track this if your hives aren't in your backyard. If you drive to check hives 15 miles away once a week, that's worth tracking (30 miles × 30 trips × $0.70 = $630/year). If your hives are 50 feet from your back door, skip it.

5. Workspace (if you have one)

Simplified rule: $5 per square foot, up to 300 sq ft maximum

Examples:

• Small shed where you store equipment and extract: 120 sq ft = $600 deduction
• Corner of garage used only for bottling: 80 sq ft = $400 deduction
• Spare room that's also a guest room: Doesn't count (needs to be exclusive use)

Don't overthink this. If you have a dedicated space, measure it and multiply by $5. If you don't have a dedicated space, skip it.

 

The 20% deduction (QBI) - free extra savings

If you're a business and make a profit, you get an automatic extra 20% deduction.

How it works:

• Revenue: $3,500
• Expenses: $2,000
• Profit: $1,500
• Extra 20% deduction: $300

That $300 deduction saves you about $66 in taxes (if you're in the 22% bracket).

Do you need to do anything special? Nope. Your tax software calculates it automatically when you file Schedule F (farming income).

 

State property tax breaks (if you own land)

Many states let you reduce property taxes if you keep bees. The savings can be huge: $300 to $3,000+ annually depending on your property.

That being said, requirements vary a lot by state and even by county.

Every county has different specific requirements. This table gives you the basics, but you'll need to contact your county tax assessor for exact requirements.

Is it worth it?

• Small savings: $300-800/year (still worth a phone call)
• Medium savings: $1,000-2,500/year (definitely worth applying)
• Large savings: $3,000+/year (absolutely do this)

To apply: Contact your county tax assessor's office. Most deadlines are January-March, so start the process in late fall.

Your simple December checklist for beekeeping taxes

Don't overthink year-end planning. Just do these five things:

Before December 31:

1. Buy equipment you'll need soon 

If you've been planning to buy an extractor, more boxes, or replace worn gear, do it before December 31. Use it once (even just a test run) before year-end and you can deduct the full cost this year.

2. Stock up on spring supplies 

If you'll need jars, labels, or woodenware for spring, buy them in December. You can deduct them this year even though you'll use them in March.

3. Count your total honey sales 

Add up everything: farmers market cash, Venmo payments, checks from friends. This is your gross income. Write it down.

4. Add up your expenses 

Pull together receipts (or check your email for order confirmations if you lost receipts). Equipment, supplies, classes, association dues, booth fees—everything counts.

5. Note your colony count 

How many hives did you have? Did you lose any to winter? Document it. Shows you're running a real operation.

In January:

6. File Schedule F (not Schedule C) 

Beekeeping is agriculture, which means you use Schedule F ("Profit or Loss from Farming"), not Schedule C. Make sure your tax software includes this—basic versions of TurboTax don't, you need "Home & Business" level.

7. Keep it simple 

You don't need a CPA unless you're making over $10,000. Most hobbyist beekeepers can file their own taxes with software.

 

Commonly asked questions about taxes in beekeeping

Q: Do I need to collect sales tax? 

A: Depends on your state. In most states, if you're selling directly to consumers (farmers market, door-to-door), you don't need to collect sales tax on honey. But check your state's department of revenue website to be sure.

Q: What if I only made $600 this year? 

A: Still report it. Even small amounts need to be reported. Good news: if your expenses were higher, you might owe no tax at all.

Q: Should I get an LLC if I plan to sell honey? 

A: Not for tax purposes. An LLC doesn't change how you file taxes. You'd still use Schedule F as a sole proprietor. People get LLCs for liability protection, not for tax benefits.

Q: Can I deduct my first hive purchase before I started selling anything? 

A: Yes, as long as you were intending to run a business from the start. If you bought your first hive thinking "I might sell some honey someday," that's business intent, so you should document it.

Q: What if I'm married and file jointly with my spouse? 

A: Your beekeeping income and expenses go on the joint return. Everything works the same way, you just file together.

Q: I started selling honey in October. Can I still be a business this year? 

A: Yes. You just report the income and expenses from October-December. Document that you were setting up a business all year (buying equipment, learning, preparing) even if sales didn't start until fall.

 

Resources

IRS Publications (Free):

• Publication 225: Farmer's Tax Guide - Everything about agricultural taxes
• Publication 946: How to Depreciate Property - If you want details on equipment deductions
• To download: Go to IRS.gov, search for the publication number

State Resources:

• Your county tax assessor - For property tax exemptions
• State cooperative extension - Search "[your state] cooperative extension beekeeping" for state-specific tax info
• State beekeeping association - Often has tax guidance for your state

 

Bottom line

You started beekeeping because you care about bees. Taxes shouldn't be complicated.

The essentials:

1. Classify correctly: If you're trying to make money, you're a business
2. Deduct your expenses: Equipment, supplies, classes - it all counts
3. Keep basic records: Doesn't need to be fancy, just needs to exist
4. Use Schedule F: Beekeeping is farming, not general business
5. Check property tax breaks: If you own land, this could save serious money

What you'll save: Most hobbyist beekeepers save $400-$1,400 annually by filing correctly. Over 10 years, that's $4,000-$14,000 staying in your pocket instead of going to the IRS.

That's money you can spend on your bees.