Landlords
Draft: awaiting review by a qualified accountant
Landlord rental income tax calculator
Rental profit is added to your other income and taxed at your normal rates. Mortgage interest isn't deducted from your profit. Instead you get a tax reduction at the basic rate.
Tax year 6 April 2026 to 5 April 2027
£
Letting fees, repairs, insurance, etc. Don't include mortgage interest.
£
£
Salary, pension or self-employed profit
£
Your estimate
£2,946
extra tax a year because of your rental income
Taxable rental profit£15,500
MethodActual expenses
Mortgage interest tax reduction£1,200
Tax on rental income£2,946
Left after costs and tax£6,554
- Mortgage interest isn't deducted from rental profit. You get a tax reduction at the basic rate instead.
- If the £1,000 property allowance gives a lower bill, we use it, but then expenses and the interest reduction can't be claimed.
- Assumes you own the property in your own name, not through a company or jointly.
For guidance only, not tax advice. Based on 2026 to 2027 rates, last checked 3 November 2026.
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Common questions
- Can I deduct mortgage interest from rental income?
- Not directly for residential property owned personally. You get a tax reduction of 20% of your finance costs, limited by your rental profit and your income.
- What is the property allowance?
- If your rental income is small, you can deduct £1,000 instead of your actual expenses. You can't then claim the mortgage interest reduction. The calculator picks whichever is better.