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

Income Tax Rates (England, Wales & 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 get full mortgage interest deduction. Instead, you get:

Mortgage interest relief 20% tax credit on interest paid

Rental income is added on top of your salary or other taxable income.

How Rental Income Tax Works

Rental income tax is based on your rental profits, not 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 don’t claim expenses.
  • Mortgage interest does not reduce profit but gives a 20% tax credit.
  • Your Income Tax band determines how much tax you pay on profit.
  • Losses can be carried forward to future rental profits.

This calculator includes all these rules to show an accurate tax estimate.

Rental Income Tax Examples

£8,000 Rent – Few Expenses
  • Use £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
  • Tax (basic rate): £2,400
  • Tax (higher rate): £4,800
£30,000 Rent – £10,000 Expenses
  • Profit: £20,000
  • Tax (basic rate): £4,000
  • Tax (higher rate): £8,000
  • Tax (add. rate): £9,000

Frequently Asked Questions

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

Only mortgage interest qualifies, and even then, you receive a 20% tax credit, not a full deduction.

This UK Rental Income Tax Calculator uses HMRC 2025–26 Income Tax rules, property allowance details and mortgage interest relief rates for landlords.