Written by James Nicholson, landlord and founder of The Landlord Alliance · Last updated 8 September 2026
England, Wales and Northern Ireland. Scottish taxpayers pay Scottish rates on rental profit and this calculator will not be accurate for them.

An estimate, not tax advice. This works out the income tax on rental profit for an individual landlord using 2026/27 allowances. It does not handle companies, jointly held property with unequal shares, losses brought forward, capital allowances, or anything unusual. Use it to understand the shape of your position, then check the number with an accountant.

What this does

It applies your other income first, then taxes your rental profit in whatever bands are left, adds back mortgage interest as Section 24 requires, and subtracts the 20% credit. Then it does the same calculation at the April 2027 property income rates of 22, 42 and 47% so you can see what is coming.

The calculator

How the calculation works

  1. Taxable rental profit = rent minus running costs. Mortgage interest is not deducted — that is the whole of Section 24.
  2. Your other income uses up your personal allowance and basic rate band first. The rental profit is taxed in whatever bands remain, which is why the same profit costs different landlords different amounts.
  3. The Section 24 credit is 20% of the mortgage interest, capped at the lower of the interest, the property profit, and your income above the personal allowance.
  4. From April 2027, property income is taxed at 22, 42 and 47% rather than 20, 40 and 45%. The calculator shows both.

What it deliberately ignores. The personal allowance taper above £100,000 is applied, but the high income child benefit charge, student loan repayments and the effect on other means-tested entitlements are not — and Section 24 can push you over those thresholds on profit you never received. If your total income is near £60,000 or £100,000, get proper advice.

Read next

Landlord tax in 2026What you pay on rental profit, the calendar, and the April 2027 rate rise. Section 24 explainedThe restriction this calculator applies, with the three caps on the credit. Allowable expensesWhat counts as a running cost, and what does not. All free calculatorsDeposit caps, notice periods, yields and arrears thresholds.
Rental income tax calculator: It applies your other income first, then taxes your rental profit in whatever bands are left, adds back mortgage interest as Section 24 requires, and subtracts the 20% credit.
The short version at a glance — free to share with a link to this page.

Why is my mortgage not deducted?

Because since April 2020 it cannot be. You get a tax reducer worth 20% of the interest instead, which is what the calculator applies.

Does this work for a limited company?

No. Companies pay corporation tax and deduct interest in full — see limited company buy-to-let.

What about jointly owned property?

Enter your share of the rent and costs. Married couples are taxed 50/50 by default unless a Form 17 declaration says otherwise.

Are the April 2027 rates certain?

They were announced at the Autumn Budget in November 2025 and are government policy, but announced is not enacted. Plan for them; do not treat them as immovable.

Does it include National Insurance?

No. Rental income from an ordinary property business is not subject to National Insurance.

What if I made a loss?

The calculator floors the profit at zero. Rental losses carry forward against future rental profits — they cannot be set against employment income.

Sources. HMRC guidance on property income and finance cost relief; GOV.UK income tax rates and allowances for 2026/27; House of Commons Library briefing CBP-10450 on the Budget 2025 property income rates. Checked 8 September 2026.

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