Landlord Tax Calculator
Estimate the tax on personally owned rental property after allowable expenses and residential finance costs. Compare the current 2026/27 rules with the planned 2027/28 property-income rates.
What this landlord tax calculator estimates
This tool is for an individual who owns property personally, rather than through a limited company. It estimates the extra Income Tax caused by property profit after your other taxable income. It does not calculate National Insurance because personal rental income is not employment income.
Rent is not the same as profit
Start with rent received, then subtract allowable property expenses such as repairs, insurance and letting-agent fees. Residential mortgage interest is entered separately because relief is handled as a tax reduction rather than as an ordinary deduction for most individual residential landlords. If you use the £1,000 property allowance, do not also claim expenses.
What is not included
- Property losses brought forward or carried forward
- Rent-a-Room relief, holiday-let rules or furnished holiday accommodation
- Multiple properties with different ownership shares
- Limited companies, partnerships, trusts or non-resident landlord rules
- Capital Gains Tax when a property is sold
- Every possible allowance, tax-code adjustment or interaction with benefits
The Scottish result uses Scottish Income Tax bands as a planning estimate. Property-income rules are devolved and may not match the England, Wales and Northern Ireland 2027/28 rates exactly. Check the final position with HMRC or a qualified tax adviser. See the official GOV.UK renting out property guidance and the property-income rate technical note.
Keep records from the start
Keep rent statements, invoices, insurance documents, agent statements and mortgage-interest information. A simple annual total is useful for planning, but a Self Assessment return may need more detail. The result here is a budgeting estimate and should not replace the figures in your tax return.
Frequently asked questions
Is landlord income taxed at 22%?
Not as a single flat rate. From 6 April 2027, separate property-income rates are scheduled at 22%, 42% and 47% for England, Wales and Northern Ireland. Your other income, taxable property profit and finance-cost relief all affect the result.
Should I enter rent or profit?
Enter annual rent and allowable expenses separately. The calculator subtracts expenses to estimate property profit. If you use the £1,000 property allowance, tick that option instead and do not also enter expenses.
Can I deduct mortgage interest from rental income?
For most individual residential landlords, finance costs are not deducted like ordinary expenses. Instead, they generally produce a basic-rate tax reduction. This calculator keeps finance costs separate to reflect that distinction.
Does rental income attract National Insurance?
Personal property income does not normally attract employee National Insurance. This tool estimates Income Tax only, and it does not assess whether a rental activity is a trade or business for every possible circumstance.
Can I use this for a limited company?
No. Companies pay Corporation Tax and have different rules for expenses, finance costs, dividends and extraction. This calculator is for personally owned property.