Landlord tax calculator
Tax year 2026/27, for England and Northern Ireland, Scotland, Wales. Rent less expenses or the property allowance, taxed on top of your other income, this year and from 6 April 2027.
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Tax on your rental profit
£1,800a year
- Profit after tax
- £7,200
- Rental profit
- £9,000
- Effective rate on profit
- 20%
£9,000.00 of profit is taxed at 20%.
Under 2027/28 as announced so far, the same inputs give £2,160.00 of tax, £360.00 more than in 2026/27. The property basic rate moved from 20% to 24%; the property higher rate moved from 40% to 44%; the property additional rate moved from 45% to 49%.
The working
| Line | Rate | On | A year | Source |
|---|---|---|---|---|
| £12,000.00 | ||||
| Rent from all your lettings in the year: £12,000.00. | ||||
| −£3,000.00 | gov.uk | |||
| Expenses of £3,000.00 are more than the £1,000 property allowance, so they are deducted instead of it. Mortgage interest is not an allowable expense for an individual landlord. | ||||
| £9,000.00 | ||||
| £12,000.00 − £3,000.00 = £9,000.00. | ||||
| £30,000.00 | ||||
| Pay, pensions and other taxable income: £30,000.00. It is taxed first, so it sets where the profit sits in the bands. | ||||
| £0.00 | gov.uk | |||
| The standard allowance is £12,570.00. All of it is used by other income, so none is left for rental profit. | ||||
| 20% | £9,000.00 | −£1,800.00 | gov.uk | |
| Profit from £17,430.00 to £26,430.00 of taxable income: £9,000.00 × 20% = £1,800.00. | ||||
| £9,000.00 | −£1,800.00 | |||
| £9,000.00 of profit is taxed; the total is £1,800.00. | ||||
How this is calculated
- Profit. Rent received less either your allowable expenses or the £1,000 property allowance, never both. The tool deducts whichever is larger.
- Personal allowance. Your other income uses the £12,570 allowance first. Whatever is left goes against the profit at 0%. Above £100,000 of total income the allowance tapers.
- Rates. The taxable profit is stacked on top of your other income. In 2026/27 it is taxed at the main rates: 20% within the basic rate limit of £37,700, then 40% and 45%. From 6 April 2027 the property rates of 24%, 44% and 49% apply in England, Wales and Northern Ireland. Taxable amounts are rounded down to the pound.
- Scotland. Scottish taxpayers pay Scottish income tax on rental profit at the Scottish bands. Scotland gains the power to set its own property income rates from 2027/28; none set yet.
The rounding conventions are listed in the methodology, and the formulas run from the open rules file for 2026/27.
Rules used
- Tax year
- 2026/27 (6 April 2026 to 5 April 2027)
- Nation
- England and Northern Ireland
- Figures
- Checked between 7 November 2026 and 8 November 2026. Status: in force.
- Next scheduled change
- 6 April 2027: New tax year. Savings and property income rates rise to 24%, 44% and 49%, the trading allowance rises to £3,000, the Pension Tax Allowance begins and the mileage rate above 10,000 miles rises to 35p.
- Every figure
- Rates and allowances for 2026/27, each with its source and the date it was checked.
What changes on 6 April 2027
New tax year. Savings and property income rates rise to 24%, 44% and 49%, the trading allowance rises to £3,000, the Pension Tax Allowance begins and the mileage rate above 10,000 miles rises to 35p.
- The property basic rate: 20% to 24% (announced)
- The property higher rate: 40% to 44% (announced)
- The property additional rate: 45% to 49% (announced)
You can switch the tax year above to see the result under 2027/28 as announced so far.
What this does not do. It does not model mortgage interest relief, losses carried forward, furnished holiday lettings, the rent a room scheme, jointly owned property, or a tax code adjustment. Scotland is shown as not set from April 2027 until the Scottish rates are published. It never suggests what to do with the result.
Questions people ask
- How much rent can I receive before paying tax?
- The first £1,000 of property income in a tax year is covered by the property allowance. Above that, rent less allowable expenses is added to your other income and taxed in the band it lands in. Rent over £1,000 has to be reported to HMRC even when no tax is due.
- What changes for landlords in April 2027?
- From 6 April 2027 rental profit in England, Wales and Northern Ireland is taxed at the property rates of 24%, 44% and 49% instead of the main rates of 20%, 40% and 45%. The line under the figure shows the same rent under 2027/28.
- Can I claim expenses and the property allowance?
- No. You deduct either the £1,000 allowance or your actual expenses, whichever you choose. This tool deducts the larger of the two, and the ledger says which it used.
- Is mortgage interest an allowable expense?
- Not for an individual landlord. Finance costs are relieved separately as a reduction of 20% of the interest, which this tool does not model, so a landlord with a mortgage pays less than the figure shown.
- What about Scotland?
- In 2026/27 a Scottish taxpayer pays Scottish income tax on rental profit, which the tool shows. Scotland gains the power to set its own property income rates from 2027/28; none set yet. Until then the tool shows 2027/28 for Scotland as not set.
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