Free · England and Wales
Rental income tax calculator
See how much income tax your rent adds to your bill, with Section 24 worked out, and what's left each month.
How it's worked out
Take the year's rent, less running costs: the agent, repairs, insurance.
Add that profit to your other income and tax it at your rates.
Take off the Section 24 tax credit for the mortgage interest.
Show only the extra tax the rent adds, and what's left each month.
Questions
How is tax on rental income worked out?
Take the year's rent, less running costs such as the letting agent, repairs and insurance. That profit is added to your other income and taxed at your rates. The calculator shows only the extra tax the rent adds.
Can I deduct my mortgage interest?
Not if you own the property in your own name. Instead you get a tax credit of a set percentage of the interest (Section 24). Higher-rate taxpayers lose out most, because the credit is smaller than the tax the interest would have saved.
Are rental income tax rates changing?
Yes. From April 2027, rental income has its own rates, 2 points above the usual ones. The calculator shows next year's figure when the rates change.
Does a limited company pay less?
A company deducts all of the interest and pays corporation tax, but you pay dividend tax to take the money out. The full deal calculator compares both.
More terms explained in the glossary.