Property Rental Income Tax Calculator
Work out an estimate of what you’ll owe HMRC on your rental income. Enter your rent, expenses, mortgage interest, and other income to see your likely tax bill, including the mortgage interest tax credit.
Calculate Your Landlord Tax Bill
Enter your annual rental income, allowable expenses, mortgage interest, and any other taxable income. The calculator applies UK income tax bands to your rental profit and factors in the 20% mortgage interest tax credit that replaced full interest deductibility.
Your Estimated Tax
Updates automatically as you type
UK Income Tax Bands
Rental profit is added to your other income and taxed using these standard England, Wales & Northern Ireland bands.
| Band | Taxable Income | Tax Rate | Notes |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | Tapered away above £100,000 total income. |
| Basic Rate | £12,571 – £50,270 | 20% | Mortgage interest credit is worth 20% here. |
| Higher Rate | £50,271 – £125,140 | 40% | Mortgage interest credit still capped at 20%. |
| Additional Rate | Over £125,140 | 45% | Personal allowance fully lost by this point. |
| Property Allowance | Up to £1,000 property income | 0% | Alternative to deducting actual expenses. |
Rental Income Tax FAQ
Answers to the most frequently asked questions about UK landlord tax and calculating rental income tax.
Yes. Rental income from a UK property is added to your other taxable income and taxed at your marginal rate, after deducting allowable expenses. You must report it via Self Assessment if your rental income before expenses is over £1,000 in a tax year.
Not directly. Since April 2020, individual landlords can no longer deduct mortgage interest from rental income before tax. Instead, you get a tax credit worth 20% of your mortgage interest, which is deducted from your final tax bill rather than your taxable profit.
Allowable expenses typically include letting agent fees, landlord insurance, repairs and maintenance, ground rent and service charges, utility bills you pay, accountancy fees, and council tax during void periods. Mortgage capital repayments and improvements are not deductible as expenses.
The property allowance lets you earn up to £1,000 in property income each tax year completely tax-free, without needing to register for Self Assessment. If your expenses are lower than £1,000, it may be more tax-efficient to claim this allowance instead of deducting your actual expenses.