Rental Income Tax Calculator
Calculate how much income tax you owe on your rental profit. Uses 2025/26 UK tax rates including personal allowance taper.
Your income
Letting agent fees, insurance, repairs, ground rent, accountancy fees, etc.
Not deductible, but you receive a 20% tax credit (Section 24). Enter £0 if no mortgage.
This determines which tax band your rental income falls into.
Tax on your rental income
Tax on rental profit
£3,000.00
Effective tax rate
20.0%
Overall tax breakdown (2025/26)
| Band | Income | Tax |
|---|---|---|
| Personal allowance | £12,570.00 | £0.00 |
| Basic rate (20%) | £37,430.00 | £7,486.00 |
| Total | £50,000.00 | £7,486.00 |
How rental income is taxed in the UK
Rental income is added on top of your other income (employment, pension, etc.) and taxed at your marginal rate. You only pay tax on your rental profit — the amount left after deducting allowable expenses.
Allowable expenses include letting agent fees, landlord insurance, repairs and maintenance, accountancy fees, ground rent, and service charges. Mortgage interest is not deductible but you receive a 20% tax credit instead.
If your total income exceeds £100,000, your personal allowance (£12,570) is gradually reduced. It reaches zero at £125,140, creating an effective 60% tax rate on income between £100,000 and £125,140.
This calculator provides estimates only. Consult a qualified accountant for tax advice specific to your situation.
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