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Rental income tax estimator
Estimate Income Tax on individual residential rental profit, with a 20% credit for finance costs.
Illustrative result
£1,200.00 extra tax from the rental profit
- Profit before finance costs
- £10,000.00
- Extra tax after the finance-cost credit
- £1,200.00
- Finance-cost credit
- £800.00
Assumptions
- For an individual landlord, finance costs are not deducted. A 20% credit is applied and cannot reduce the tax below zero in this estimate.
- Companies, furnished holiday lets and joint ownership splits are not modelled.
- This is a simplified individual-landlord estimate for 2026 to 2027.
Questions
Can I deduct the whole mortgage payment?
No. Capital repayment is not an expense. Finance costs for an individual residential landlord are restricted.
Use this in your own plan
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Related calculators
Estimates only. Tax and repayment rules can change, and this is not financial, tax or pension advice.
Extra tax from the rental profit£1,200.00See breakdown