Calculators › Landlord Tax Calculator (UK Rental Income)
Landlord Rental Income Tax Calculator (UK)
Enter your rent, expenses and mortgage interest to estimate the tax on your rental profit, including the Section 24 mortgage interest credit.
Tax year 2025/26 · Last reviewed 20 October 2026 · Prepared by the accountants at Self Assessment Tax Return Accountants (a trading style of Accotax). About us
A landlord with £20,000 rent, £3,000 expenses and £5,000 mortgage interest, on top of a £30,000 salary, pays about £2,400 tax on the rental profit in 2025/26. Mortgage interest is not deducted from profit; it earns a 20% tax credit instead.
How landlord tax is worked out
Your taxable rental profit is your rent minus allowable expenses. Mortgage interest is not deducted from the profit. Instead you receive a basic-rate tax credit on the interest, a rule known as Section 24. The calculator adds the profit to your other income, works out the extra tax, and then subtracts the credit.
Property allowance
Instead of claiming actual expenses you can use the property allowance if it is higher. You cannot claim mortgage interest relief when you do.
Rates used
| Personal allowance | £12,570 (reduced above £100,000) |
| Basic rate | 20% on the next £37,700 of taxable income |
| Higher rate | 40% up to £125,140 of taxable income |
| Additional rate | 45% above that |
| Class 4 National Insurance | 6% on profits between £12,570 and £50,270, then 2% |
| Trading allowance | £1,000 |
| Property allowance | £1,000 |
Rates for 2025/26, England, Wales and Northern Ireland. Check current HMRC guidance.
Worked examples
Tax on rental profit is the extra tax your rent adds on top of your other income, after the mortgage interest credit.
| Rent | Expenses | Mortgage interest | Other income | Tax on rental profit |
|---|---|---|---|---|
| £12,000 | £2,000 | £0 | £30,000 | £2,000 |
| £20,000 | £3,000 | £5,000 | £30,000 | £2,400 |
| £30,000 | £4,000 | £9,000 | £45,000 | £7,546 |
Common mistakes
- Deducting mortgage interest from profit instead of claiming the basic-rate credit.
- Claiming capital improvements as repairs.
- Missing the property allowance when expenses are small.
Related services and guides
- Self Assessment for landlords
- Self Assessment for company directors
- Self Assessment tax return cost
- Latest guides
Official sources
- Working out your rental income (GOV.UK)
- Restricting tax relief for residential landlords (GOV.UK)
- Income Tax rates and Personal Allowances (GOV.UK)
Frequently asked questions
Can I deduct mortgage interest?
Not directly. You get a basic-rate tax credit on the finance costs instead, under Section 24.
What expenses can landlords claim?
Letting agent fees, repairs and maintenance, insurance, ground rent and some other running costs. Improvements are usually not deductible.
Does this include National Insurance?
No. National Insurance does not normally apply to rental income.
Does it work for jointly owned property?
Enter only your share of the rent, expenses and interest.
Do I need to file a tax return as a landlord?
Rental income above the thresholds normally must be reported on a Self Assessment tax return.
