Landlord calculator

Rental income tax calculator.
This year and from April 2027.

Enter your rent, costs and other income to see the extra tax your letting adds this year, how that changes when the new property rates start on 6 April 2027, and whether Making Tax Digital applies to you.

2026/27 and 2027/28England, Wales & Northern IrelandSources checked 5 October 2026

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Rental income tax

Estimate the extra Income Tax your rental profit adds this year, and what the same figures cost under the new property rates from April 2027.

Your estimate

Enter your figures and select Calculate estimate.

What this estimate covers

For individual landlords taxed in England, Wales or Northern Ireland who let UK residential property. 2026/27 uses the main Income Tax rates; 2027/28 uses the announced property rates of 22%, 42% and 47% with finance cost relief at 22%, and assumes allowances and bands stay frozen. The estimate compares your actual costs with the £1,000 property allowance and uses whichever gives less tax; the allowance cannot be combined with finance cost relief. It assumes the standard Personal Allowance, no Marriage Allowance, pension or Gift Aid adjustments, no savings or dividend income, no losses brought forward and no furnished holiday lets, Rent a Room, overseas or company-owned property. Scottish taxpayers pay different rates and are not covered. The Making Tax Digital check treats the figures as a full year of qualifying income.

Check the sourceHMRC: property income rates from April 2027 HMRC: tax relief for residential landlords HMRC: property allowance HMRC: Income Tax rates and Personal Allowance HMRC: when you need Making Tax Digital

The short answer

How is rental income taxed?

You pay Income Tax on your rental profit, not on the rent itself. Profit is the rent you receive less allowable running costs. It is added to your other income, so it can be taxed at 20%, 40% or 45% depending on what else you earn. From 6 April 2027 rental profit has its own rates of 22%, 42% and 47% in England, Wales and Northern Ireland.

What changes in April 2027?

The government announced separate property income rates at Budget 2025: a 22% property basic rate, 42% higher rate and 47% additional rate from the 2027/28 tax year. Your Personal Allowance is used against salary, pension or trading income first, and rental profit is taxed as the next slice of your income. Relief for mortgage interest rises to 22% to match the new property basic rate. Rates can change at any Budget, so we recheck these figures after each one.

How does mortgage interest relief work?

For residential lets you cannot deduct mortgage interest from your rent. You get a tax credit at the basic rate instead: 20% now and 22% from April 2027. The credit is limited by your rental profit and by your income above the Personal Allowance, and anything you cannot use is carried forward. This is why higher-rate landlords often pay tax on more than their real profit.

Property allowance or actual costs?

You can take the first £1,000 of rent tax-free instead of claiming your actual costs. It tends to suit landlords with low costs and no mortgage, because you cannot claim mortgage interest relief if you use it. If you own a property jointly, each owner can use the allowance against their own share. The calculator works out both routes and uses the one that leaves less tax.

Do I need Making Tax Digital?

From 6 April 2026, landlords and sole traders with qualifying income over £50,000 must keep digital records and send HMRC quarterly updates. The threshold falls to £30,000 from April 2027, and HMRC has announced £20,000 from April 2028. Qualifying income is your share of gross rent plus any self-employment turnover, before expenses. Read our guide: Do I need Making Tax Digital for Income Tax?

When is the tax due?

Rental profit goes on your Self Assessment tax return. For 2025/26 the return and any tax owed are due by 31 January 2027. If your bill is £1,000 or more you may also have to pay towards next year in advance. Use the payments on account calculator to see your January and July figures.