Updated for 2026/27

Rental Income Tax Calculator

Work out exactly what you'll owe on your rental income: your taxable profit, a full band-by-band tax breakdown, the Section 24 mortgage interest credit, and what's left in your pocket after tax.

Tax year

Your results: 2026/27

Net tax on rental income

£2,786

Income tax on your profit, minus the Section 24 credit

After-tax rental income

£9,814

Taxable profit minus net tax: what you actually keep

Taxable rental profit£12,600
Income tax before credit£3,986
Section 24 credit applied− £1,200
Effective rate on rental income22.11%

Income tax by band

£12,570–£50,270 at 20% (£5,270 taxable)£1,054
£50,270–£125,140 at 40% (£7,330 taxable)£2,932

2026/27 vs 2027/28, side by side

From April 2027, property income moves onto its own higher rates and the Section 24 credit rises to 22%. Here's how your same figures play out under each year's rules.

2026/27

Income tax£3,986
Section 24 credit− £1,200
Net tax£2,786
After-tax income£9,814

2027/28

Income tax£2,772
Section 24 credit− £1,320
Net tax£1,452
After-tax income£11,148
Extra annual tax under 2027/28 rules -£1,334 / yr

For the full picture, including how the Personal Allowance ordering change affects landlords with both a salary and rental income, try the 2027 Tax Impact Calculator.

Rates and thresholds verified against HMRC guidance as of June 2026. These figures are for general guidance only. Consider speaking to a qualified tax adviser before making financial decisions based on these results.

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Frequently asked questions

Your rental income minus allowable running costs gives your taxable rental profit. That profit is then added on top of any other income you have (salary, pension, self-employment) to work out which income tax bands it falls into, since UK income tax is progressive: each slice of income is taxed at the rate for the band it sits in, not a single flat rate on everything. Mortgage interest is not deducted as an expense; instead it earns a separate flat-rate credit (see Section 24 below).

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