Landlord Income Tax Calculator
Estimate the income tax on your rental profit for a UK property, including the basic rate finance cost reducer that replaced full mortgage interest relief.
Taxable rental profit
£11,200
Rent less allowable expenses
Tax before the reducer
£2,240
Finance cost reducer
-£960
20 per cent of the lowest of interest, profit and income above the allowance
Estimated tax on the rental
£1,280
Cash left after interest
£6,400
Net after tax
£5,120
Marginal rate 20%
Figures use the England, Wales and Northern Ireland income tax bands with a £12,570 personal allowance that tapers above £100,000. Scottish taxpayers pay Scottish rates on non savings income, so the totals will differ. This is an estimate, not tax advice.
Frequently asked questions
Can I deduct my mortgage interest from rental income?
No. Since April 2020 finance costs on residential lettings are not deductible from rental profit. Instead you get a basic rate tax reducer worth 20 per cent of the finance costs, capped by your rental profit and total income.
What expenses can I deduct?
Revenue costs wholly and exclusively for the letting, such as letting agent fees, repairs and maintenance, insurance, ground rent and service charges, safety certificates, accountancy and allowable travel. Capital improvements are not deductible against income.
Do I need to file a Self Assessment return?
You generally need to register for Self Assessment if your rental income before expenses is more than £1,000 in a tax year. Making Tax Digital for Income Tax is being phased in for landlords above set income thresholds, so keep digital records.
Is this calculator exact?
No. It gives an estimate using standard England, Wales and Northern Ireland income tax bands and the finance cost reducer. Scottish taxpayers have different bands, and allowances taper for higher incomes. Check with an accountant before filing.
This calculator gives general estimates for UK private landlords and letting agents, not legal or tax advice. Figures depend on your circumstances and the rules in your part of the UK. Check the detail or take advice before acting.