Rental Income Tax Calculator

Landlord earning rental income from a tenant in your home or a buy-to-let property? Quickly calculate how much you can expect to pay in rental income tax.

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Repairs, letting fees, insurance, ground rent. Not mortgage interest.
Interest only, not capital repayment. Relieved at 20% as a tax credit rather than deducted as an expense.
Leave blank if rental income is your only income.
Self-employment, dividends, pension - anything else taxed as income.
Estimate only. Figures use current UK rates and assume all rental profit is taxed at your marginal rate on top of your other income. They ignore capital allowances, losses brought forward, joint ownership splits, National Insurance and student loan repayments. Check with an accountant before filing.

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Calculating tax on rental income

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How rental income is taxed in the UK

You only pay tax on your taxable profit, not the total rent you collect - rent received and other tenant payments, minus allowable expenses.

If your rental income is over £1,000 a year you'll need to file a Self Assessment return.

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Rent a Room relief (£7,500 tax-free)

Let a furnished room in your own home and Rent a Room relief can make the first £7,500 a year tax free - £3,750 each if you share the income.

Below the threshold it's automatic. Above it, you choose between paying tax on the excess or deducting expenses as normal.

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Why should you use our rental income tax calculator?

  • Applies the Section 24 mortgage interest credit correctly
  • Compares the £1,000 property allowance against claiming real expenses
  • Handles Rent a Room relief if you let a room in your own home
  • Covers Scottish tax bands as well as England, Wales and Northern Ireland
  • Built by a platform landlords already trust for Self Assessment and MTD

FAQs

Do I have to pay tax on rental income?

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Yes. Rental income is subject to Income Tax. You pay tax on your profit (rental income minus allowable expenses), not on the total rent collected.

What counts as rental income?

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Rental income includes the rent you receive, as well as payments from tenants for services such as cleaning, gardening, utility bills, or repairs.

What expenses can I deduct from my rental income?

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Allowable expenses include repairs and maintenance, letting agent fees, landlord insurance, utility bills you pay yourself, and property management costs. Mortgage interest is treated differently - relief is given as a 20% tax credit rather than as a deduction.

Read the full guide to allowable expenses for landlords.

How is rental property income taxed?

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Your rental profit is added to your other income (like your salary) and taxed according to your personal Income Tax band: 20%, 40% or 45% in England, Wales and Northern Ireland. Scotland has its own bands, running from 19% to 48%.

Do I need to file a Self Assessment tax return?

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You must file a Self Assessment return if your net rental income is more than £1,000 a year, or if you choose not to use the £1,000 property allowance.

Note that the Self Assessment rules for landlords and self-employed individuals are changing. From April 2026, landlords earning over £50,000 in qualifying income will be required to adhere to the new MTD rules. This means digital record-keeping and quarterly updates using HMRC-recognised software like Landlord Studio.