Rental income tax calculator for UK landlords

How to use the landlord tax calculator

1. Choose the tax year and where you live. Scotland has its own income tax bands, so choose it if your main home is there.
2. Enter your other income. This is your salary, pension and self-employment profit for the year, before tax. Rental profit is taxed on top of it.
3. Enter your rent and running costs. Use the rent you received in the tax year and your allowable expenses as one total, or open Itemise your expenses to add them one by one.
4. Add your mortgage interest. Enter only the interest, not capital repayments. It earns a tax credit rather than coming off your rent.
5. Open More options if you need them. They cover joint ownership, more than one property, a room in your own home, and losses or interest brought forward from earlier years.

The result shows the tax your rental income adds, how much you keep, how each part of your profit is taxed, and whether another relief would cost you less.

How the calculator works out tax on rental income

It follows the order HMRC uses. Your rent, less allowable expenses, gives your property profit. That profit sits on top of your other income, so it is taxed at the rate your salary or pension has already reached. Mortgage interest is not deducted; it earns a tax credit of 20% instead, limited by your profit and your income.

The headline figure is the tax your rental income adds: your total bill with the rent, minus the bill on your other income alone. For the example figures that is £3,586, and you keep £4,814 of £18,000 rent after costs and tax.

Each step is set out in the guide to tax on rental income, with examples at every tax rate.

Buy-to-let expenses you can include

Enter your running costs as one figure, or itemise them. The costs landlords claim most often are letting agent and management fees, repairs and maintenance, landlord insurance, ground rent and service charges, bills and council tax you pay for the property, accountancy fees, and the cost of replacing furniture and appliances.

Mortgage interest has its own box because it is not an expense. Capital repayments, the cost of buying the property and improvements such as an extension cannot be taken off rent. The guide to allowable expenses for landlords explains each cost.

What this buy-to-let tax calculator covers

• The 2025/26, 2026/27 and 2027/28 tax years, including the separate property income rates from 6 April 2027.
• England, Wales and Northern Ireland, and Scotland's own tax bands.
• Section 24 mortgage interest relief with all three limits, and interest carried forward.
• Allowable expenses, the £1,000 property allowance and Rent a Room relief, with the cheapest route recommended.
• Joint owners at any split, several properties, and losses brought forward.
• Former furnished holiday lets, which are taxed like other lettings.
• Whether Making Tax Digital for Income Tax applies to your rental income.

Using the calculator for a holiday let

Since 6 April 2025, furnished holiday lets have been taxed in the same way as other rental property. Mortgage interest on a holiday let now earns the tax credit instead of being deducted, and the profit no longer counts as earnings for pension contributions. Enter a holiday let's income, running costs and interest as you would for any other let. If you let a furnished room in a home you live in, tick the Rent a Room option under More options instead.

What taxes do landlords pay?

• Income tax on rental profit. This is what the calculator works out.
• Capital Gains Tax when you sell a rental property for more than it cost you.
• Stamp Duty Land Tax when you buy, usually at higher rates for an additional home. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax instead.
• Corporation Tax instead of income tax, if a limited company owns the property.

National Insurance does not normally apply to rental income.

What it does not cover

• Property owned through a limited company, which pays Corporation Tax instead.
• Landlords who live abroad, overseas property, and Capital Gains Tax when you sell.
• Savings and dividend income, pension contributions and Gift Aid, which can change your allowances.
• National Insurance, which does not normally apply to rental income.

Your figures stay with you

The calculator runs in your browser. Nothing you type is sent to us or stored. If you copy a shareable link, your figures are written into that link so whoever opens it sees the same result.