Free tool
UK Rental Income Tax Calculator
Estimate the tax on your UK rental profit for 2026/27, including the mortgage-interest restriction that catches so many landlords out, and see what you actually keep.
Repairs, letting-agent and management fees, insurance, ground rent and service charges. Not mortgage interest.
Entered separately: it is not deducted from profit, but gives a 20% tax reduction.
Employment, pension or other income. Decides the tax band your rental profit falls into.
2026/27, rest-of-UK rates. Assumes you receive the full personal allowance (most landlords, including most non-residents, do). Indicative only.
Estimated tax on your rental income
£2,746
leaving £6,254 in your pocket after expenses, interest and tax
- Rent received
- £18,000
- Less allowable expenses
- - £3,000
- Taxable rental profit
- £15,000
- Income tax on profit
- £3,946
- Less mortgage-interest reduction (20%)
- - £1,200
- Tax due
- £2,746
Email me my full breakdown + what it means for me
We'll send your result, the reasoning, and a short note on the next steps for your situation. No obligation.
How rental income is taxed
Your taxable rental profit is the rent you receive less your allowable running costs: repairs, letting-agent fees, insurance, ground rent and similar. That profit is added to your other income and taxed at your marginal rate (20%, 40% or 45%).
Mortgage interest is treated differently. Since April 2020 you cannot deduct it from your profit. Instead you get a tax reduction worth 20% of the interest, which is why higher-rate landlords now pay noticeably more than they used to. If you live abroad, your rent stays within UK tax under the Non-Resident Landlord Scheme, and most non-residents still keep the personal allowance.
We handle landlord tax returns
From registering under the Non-Resident Landlord Scheme to filing your Self Assessment and claiming every relief, we take care of it on a fixed fee. Book a free clarity call.