iHow it is calculated
Rental profit is taxed at your income tax rate. Enter the profit and the rate for your band:
tax = rental profit × rate
£12,000 of rental profit at the 20% basic rate = £2,400. Switch to 40% for the higher band.
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Taxes · Updated 2026
Rental Income Tax Calculator
Estimate tax on rental profit at your income tax rate — 20%, 40% or 45% — or enter your own rate.
Enter the amount
£
%
Enter the rental profit and the tax rate. Tap a band chip or type your own rate.
=Tax
400.00£
Amount2,000.00 £
Tax 20.00%−400.00 £
Net1,600.00 £
UK rental profit is taxed at your income tax rate (20% / 40% / 45%), after the £1,000 property allowance. Mortgage interest gets a 20% tax credit rather than being deducted. Set the rate for your band.
Amount 2,000.00 £ × 20.00% = Tax 400.00 £, Net 1,600.00 £Indicative tax figures, not advice. This applies a single rate you set — real income tax may be progressive or banded. Check the rate in force for your case. Instant in-browser calculation, no account.
Last updated: 11 July 2026 Source: HMRC — Income Tax rates
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
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?Frequently asked questions
How is rental income taxed in the UK?
Rental profit (rent minus allowable expenses) is added to your other income and taxed at 20%, 40% or 45% depending on your band, after the £1,000 property allowance.
What is the property allowance?
£1,000 of gross rental income is tax-free. Above it you pay tax on the profit, or you can deduct the allowance instead of expenses.
What about mortgage interest?
Since 2020 mortgage interest is not deducted from profit; instead you get a 20% tax credit on the interest. Adjust the rate you enter to reflect your position.
Can I set my own rate?
Yes — type any rate or tap a band chip, so the tool fits your band and any rule changes.
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