UK Rental Income Tax Calculator 2025

Estimate how much tax you owe on rental income for the 2025–26 tax year. Includes property income allowance, allowable expenses and HMRC Income Tax rules.

UK Rental Income Tax Calculator

Estimate your rental income tax for the 2025/26 tax year, including expenses and mortgage interest relief.

For illustrative purposes only — not financial advice.

Ready
Taxable Profit £0.00
Tax Payable £0.00
Net Rental Income (After Tax) £0.00
Detail Value
Rental Income £0.00
Allowable Expenses £0.00
Mortgage Interest £0.00
Mortgage Tax Relief (20%) £0.00
Final Tax Payable £0.00

 

Rental Income Tax Rates 2025–26

Explore more UK tax tools including VAT Calculator, Income Tax Calculator, Stamp Duty Calculator and Capital Gains Tax Calculator.

Income Tax Rates England, Wales and NI
Band Income Range Rate
Personal Allowance £0 – £12,570 0%
Basic Rate £12,571 – £50,270 20%
Higher Rate £50,271 – £125,140 40%
Additional Rate Over £125,140 45%
Property Income Allowance
Tax-Free Property Allowance £1,000 per tax year
Mortgage Interest Tax Relief

Landlords no longer receive full mortgage interest deduction. Instead, HMRC provides:

Mortgage interest relief 20% tax credit on interest paid

Rental income is added to your other taxable income. Official guidance available at HMRC Paying Tax on Rental Income.

How Rental Income Tax Works

Rental income tax is based on your rental profits, not the total rent received. HMRC allows certain deductions and allowances to reduce your taxable profit.

  • Rental profit = Rent received – Allowable expenses.
  • £1,000 property allowance applies if you do not claim expenses.
  • Mortgage interest provides a 20% tax credit instead of full deduction.
  • Your Income Tax band determines the tax amount you pay.
  • Rental losses can be carried forward to offset future rental profits.

This calculator applies all allowances, credits and Income Tax bands to estimate landlord tax.

Rental Income Tax Examples

£8,000 Rent – Few Expenses
  • Using £1,000 property allowance
  • Taxable profit £7,000
  • Basic rate £1,400 tax
  • Higher rate £2,800 tax
£15,000 Rent – £3,000 Expenses
  • Profit £12,000
  • Mortgage interest credit 20% relief
  • Basic rate tax £2,400
  • Higher rate tax £4,800
£30,000 Rent – £10,000 Expenses
  • Profit £20,000
  • Basic rate tax £4,000
  • Higher rate tax £8,000
  • Additional rate tax £9,000

Frequently Asked Questions

No — you only pay tax on rental profit after expenses or using the £1,000 property allowance.

Only the interest portion qualifies and is given as a 20% tax credit, not a full deduction.

This UK Rental Income Tax Calculator is based on HMRC 2025–26 landlord tax rules including Income Tax rates, property allowance, deductible expenses and mortgage interest tax relief. View all tools via the TaxCalcUK Sitemap.