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Understanding Tax On Rental Income For Improved Profitability

The IRS tax filing deadline for the 2024 tax year is April 15th, 2025. Be aware that several of the provisions from the Tax Cuts and Jobs Act of 2017 are scheduled to expire in 2025 or are already being phased out. The tax extension deadline for your 2023 taxes is October 15th.

Below, we've collected everything real estate investors need to know in order to streamline their tax season including 2024 rental income tax rates and deadlines, free downloadable landlord tax resources, helpful articles, and expert insights.

Discover the tools and knowledge to maximize your rental property tax deductions, minimize tax liabilty, and increase your portfolio ROI.

Income tax rates 2024

Tax rate
Single filers
Married filing jointly  or qualifying surviving spouse
Married filing separately
Head of household
10%
$0 to $11,600
$0 to $23,200
$0 to $11,600
$0 to $16,550
12%
$11,601 to $47,150
$23,201 to $94,300
$11,601 to $47,150
$16,551 to $63,100
22%
$47,151 to $100,535
$94,301 to $201,050
$47,151 to $100,535
$63,101 to $100,500
24%
$100,526 to $191,950
$201,051 to $383,900
$100,526 to $191,950
$100,501 to $191,950
32%
$191,951 to $243,725
$383,901 to $487,450
$191,951 to $243,725
$191,951 to $243,700
35%
$243,726 to $609,351
$487,451 to $731,200
$243,726 - $365,600
$243,701 to $609,350
37%
$609,351 or more
$731,201 or more
$365,601 or more
$609,351 or more
Tax rate
Single filers
10%
$0 to $11,000
12%
$11,001 to $44,725
22%
$44,726 to $95,375
24%
$95,375 to $182,100
32%
$182,101 to $231,250
35%
$231,251 to $578,125
37%
$578,126 or more
Tax rate
Married filing jointly  or qualifying surviving spouse
10%
$0 to $22,000
12%
$22,001 to $89,450
22%
$89,451 to $190,750
24%
$190,751 to $364,200
32%
$364,201 to $462,500
35%
$462,501 to $693,750
37%
$693,751 or more

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How is Rental Income Taxed?

Rental income is taxed as ordinary income and you pay according to your marginal tax bracket, which is between 10% and 37%.

However, because the IRS deems rental income to be "passive" it needs to be reported separately from ordinary W-2 income. Most real estate investors need to file a Schedule E which is the part of the form 1040 that deals with supplemental income and loss, such as rental income and royalties.

Important rental income tax forms

  • Schedule E form 1040 to report your income expenses.
  • Schedule A form for any personal expenses associated with your rental property.
  • Form 4562. This allows you to report depreciation from the year you began leasing your rental property.
  • Form 8960. If net investment income tax applies to your rental income, you need to file.
  • Form 1099 for suppliers and reporting online rent collection.

How Much Tax Do You Owe? Read our full Tax On Rental Income Guide Here

2024 tax deadlines

Annual Tax Deadlines
Deadline
Due Date
Tax Season Begins
January 23rd
Due Date for W-2 forms
January 31st
1099 Forms Sent
January 31st,
Tax Day & Form 4868 (Extension Request) Deadline
April 15th
Tax Extension Deadline
October 15th
Partnerships, Multi-member LLCs, and S-Corporations (Form 1065)
March 15
Extension Deadline For Form 1065
September 16
Quarterly Tax Payments
Payment period
Due date
September to December, Q4 2023
January 16
January to March
April 15
April to May
June 17
June to August
September 16
September to December
January 15

Real estate accounting and tax strategies with CPA Christanne Wright

Christanne is an experienced real estate expert and CPA who has made it her mission to help real estate investors minimize their tax bills each and every year.

Christanne Wright

Accountant

"If you don't keep good records, because the IRS is so dependant on record-keeping, you run the risk of having a lot of, or even all of your expenses excluded from your tax file."

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