2026/27 Tax YearHMRC Rates
Rental Income Tax Calculator
Calculate how much tax you owe on your rental income as a UK landlord. Includes mortgage interest tax relief (Section 24) and property allowance.
Rental Income Details
Enter your rental income and expenses
You receive a 20% tax credit on mortgage interest (Section 24)
Repairs, insurance, letting agent fees, etc.
£1,000 tax-free allowance instead of expenses
Tax Summary
Total Tax on Income
£5,986
Effective Rate: 13.2%
Rental Income£12,000
Deductions-£1,500
Rental Profit£10,500
Total Taxable Income£32,930
Income Tax (before credit)£6,586
Mortgage Interest Tax Credit-£600
Section 24 - Mortgage Interest Relief
Since April 2020, landlords can no longer deduct mortgage interest from rental income. Instead, you receive a 20% tax credit on your mortgage interest payments.
This change particularly affects higher and additional rate taxpayers, as they previously could deduct interest at their marginal rate (40% or 45%).
Allowable Expenses for Landlords
You CAN Deduct
- ✓Letting agent fees and management costs
- ✓Building and contents insurance
- ✓Maintenance and repairs (not improvements)
- ✓Utility bills (if you pay them)
- ✓Ground rent and service charges
- ✓Accountancy fees
- ✓Legal fees for short leases
You CANNOT Deduct
- ✗Mortgage capital repayments
- ✗Property improvements (e.g., extensions)
- ✗Personal use costs
- ✗Purchase costs (add to CGT base cost)
- ✗Your own labour costs