Landlord tax calculator (2026 to 2027)
Estimate the Income Tax on your UK rental profit for the 2026 to 2027 tax year, including the 20% tax credit for mortgage interest. Uses GOV.UK rates for England, Wales and Northern Ireland.
Enter your rent to see an estimate.
Not tax advice. This site explains GOV.UK guidance in plain English. Your own position depends on your tax returns and circumstances. Check GOV.UK or ask an accountant before you act.
How the calculator works
- Profit = rent minus allowable expenses (or minus the £1,000 property allowance). A loss counts as zero this year.
- Income Tax is worked out on your other income plus your profit, with the Personal Allowance tapered over £100,000.
- The finance cost credit is 20% of the lowest of your finance costs, your rental profit and your income above the Personal Allowance. It cannot make your bill negative.
- The extra tax from your rent is the difference between your bill with and without your rental profit.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Sources (read 27 October 2026): GOV.UK: Income Tax rates, GOV.UK: renting out a property, paying tax, GOV.UK: tax relief for residential landlords, GOV.UK: property allowance. Not covered: Scottish rates, savings and dividends, student loans, pension and Gift Aid relief, Blind Person's Allowance, Marriage Allowance and payments on account. When the property allowance is used, this calculator does not apply the finance cost credit.
Keeping records for your rental?
If your rent is over the Making Tax Digital threshold, you will need HMRC-recognised software. Compare landlord software or read the landlord tax guide.
Questions
How is landlord tax calculated?
Rental profit (rent minus allowable expenses, or minus the £1,000 property allowance) is added to your other income and taxed at your Income Tax rates. Then 20% of your mortgage interest and other finance costs comes off your bill, within limits.
Why is my mortgage interest only worth 20%?
Individual landlords cannot deduct residential finance costs as an expense. They get a basic rate tax reduction instead, worth 20% of the lowest of finance costs, property profits and adjusted total income above the Personal Allowance. Source: GOV.UK.
Does this work for Scotland?
No. Scottish taxpayers have different rates and bands, so this calculator would be wrong for them. See GOV.UK: Income Tax in Scotland.
Does it include the 2027 property rates?
No. It covers the 2026 to 2027 tax year. Property rates of 22%, 42% and 47% start from April 2027 (HMRC policy paper). See the landlord tax guide.
Is my data saved?
No. The calculator runs in your browser. Nothing you type is sent to us or stored.