Rental income tax calculator
Estimate the income tax on your rental profit for 2025/26, including the Section 24 mortgage-interest restriction landlords are caught by. England.
Your estimate
Tax on your rental profit
£0
- Tax before credit
- £0
- Section 24 credit (20%)
- −£0
- Profit kept after tax
- £0
Assumes a personally-held property and England rates. Mortgage interest is no longer a deductible expense, instead you get a 20% tax credit (Section 24). Holding property through a company can change this; we’ll advise on the right structure.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Rental profit
- Your rent received minus allowable expenses, but not mortgage interest (see Section 24).
- Section 24
- A rule that stops landlords deducting mortgage interest as an expense. Instead you get a 20% tax credit.
- Mortgage-interest credit
- The 20% credit that replaced the old deduction, worth less to higher-rate taxpayers.
- Allowable expenses
- Costs you can deduct, like repairs, letting fees, insurance and ground rent.
FAQ
Rental income tax calculator, your questions answered
How is rental income taxed?
Your rental profit (rent received minus allowable expenses) is added to your other income and taxed at your usual rate. Mortgage interest is handled separately as a 20% tax credit under the Section 24 rules, the calculator factors that in.
What is Section 24 for landlords?
A rule that stopped landlords deducting mortgage interest as an expense. Instead you get a basic-rate (20%) tax credit, which hit higher-rate landlords hardest, many now pay tax on rent that barely covers the mortgage.
How can I reduce tax on rental income?
Claim every allowable expense, use your allowances, and consider whether holding property through a limited company suits you. We advise landlords on the most tax-efficient structure for their portfolio.
What expenses can landlords claim?
Repairs and maintenance, letting agent and management fees, landlord insurance, ground rent and service charges, and other running costs. You can’t deduct the mortgage capital or property improvements (those may count for Capital Gains Tax instead).
Do I need to file a tax return for rental income?
Yes, once your rental income passes the thresholds HMRC sets you must report it through Self Assessment. We prepare and file the whole return for you.
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