Tax on rental income (UK): how the estimate works

This is an explainer page for tax on rental income searches. The actual calculation happens on the main landlord tax calculator.

Input net rental profit and optional other income.
See Income Tax without rental vs with rental and the difference.
Includes a clear assumptions and sources section.

How tax on rental income is calculated (simplified)

Rental profit is added to your other non-savings income. We estimate the incremental tax due as IncomeTax(other + rental) - IncomeTax(other), using the selected tax-year bands.

Quick steps

1) Work out your annual net rental profit (rent received minus allowable expenses). 2) If you have salary, enter your annual taxable pay (often from your P60) as other income. 3) Use the result as a planning estimate, then verify when you complete Self Assessment.

Example

Example only: if your other income is already in a higher band, extra rental profit can be taxed at a higher marginal rate than you expect. The calculator shows both totals (with vs without rental) and the difference.

Not tax advice. This MVP does not model every rule (e.g., mortgage interest relief/Section 24, joint ownership, overseas property rules).

Open main landlord tax calculator How this is maintained

Last updated: 2026-04-20

FAQ

What should I use for other income?

Use your annual non-savings income before Personal Allowance is applied (for employees, your annual taxable pay from a P60 is a good starting point).

Do you include National Insurance (NIC) for landlords?

No. This tool focuses on incremental Income Tax due from rental profit.

Do you include CGT when selling a rental property?

No. Capital Gains Tax is separate from rental income tax.