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Rental Income Tax Calculator

Estimate the tax on your rental income — correctly applying the Section 24 mortgage-interest restriction that most buy-to-let calculators get wrong.

Repairs, fees, insurance — NOT mortgage interest.
Entered separately — it’s a 20% tax credit, not a deduction.
Salary, pension etc. — sets your tax band.

Enter your figures to estimate the tax on your rental income.

Based on 2026/27 UK tax rules · GOV.UK source · This is an estimate, not personal tax advice — always check your own circumstances with HMRC or a qualified accountant.

How rental income is taxed

You pay income tax on your rental profit — rent received minus allowable expenses such as letting fees, insurance and repairs. That profit sits on top of your other income, so it’s taxed at your marginal rate: 20%, 40% or 45%.

The catch is mortgage interest. Thanks to Section 24, you can’t deduct it from your rental profit any more. Instead you get a flat 20% tax credit on the interest. For a basic-rate taxpayer that works out the same as a deduction; for a higher-rate taxpayer it means real extra tax — quantified in our Section 24 calculator. Not sure what counts as an expense? Use the allowable expenses checker.

Quarterwise shows this estimate live all year as you log income and expenses, so there are no surprises at the final declaration.

Common questions

How is tax on rental income calculated?
Your taxable rental profit is rent received minus allowable expenses (not including mortgage interest). That profit is added to your other income and taxed at your marginal rate (20%, 40% or 45%). Mortgage interest is then relieved separately as a 20% tax credit.
Why is mortgage interest treated differently?
Since the Section 24 changes were fully phased in from 2020/21, residential landlords can no longer deduct finance costs from rental income. Instead you get a basic-rate (20%) tax reducer. Higher-rate taxpayers therefore pay more than under the old full-deduction rules.
Does this include the personal allowance and bands?
Yes — it uses the current England/Wales/NI personal allowance and income tax bands, and works out the tax on your rental profit at your marginal rate based on your other income. Scotland has different bands.
Is this an exact figure?
It’s a well-grounded estimate for a typical landlord. It doesn’t model every relief or allowance, National Insurance, or Scottish rates. Always confirm your own position with HMRC or an accountant.

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