Rental Income Tax Calculator 2026/27
If you rent out property in the UK, your rental profit is added to your other income and taxed at your marginal rate. This calculator helps you estimate how much tax you will owe on your rental income after deducting allowable expenses.
How rental income is taxed
Your taxable rental profit is calculated as: gross rental income minus allowable expenses. This profit is then added to your salary or other income to determine your overall tax band.
If your total gross rental income is under £1,000, the Property Allowance covers it and no tax is due. Above £1,000, you must declare it through Self-Assessment.
Allowable expenses for landlords
- Letting agent and management fees
- Repairs and maintenance (not improvements)
- Buildings and landlord insurance
- Council tax and utility bills (if paid by you)
- Ground rent and service charges
- Advertising costs for finding tenants
- Accountancy fees
Mortgage interest restriction
Individual landlords can no longer deduct mortgage interest as an expense. Instead, you receive a tax credit at the basic rate (20%). Higher-rate taxpayers pay tax on the full rental income at 40% but only get 20% relief on the interest — a significant reduction in effective relief. See our landlord tax guide for a full explanation.
Estimate your total tax
Use the main income tax calculator to add your rental profit to your salary and see the combined effect on your take-home pay and tax band.