Landlord Tax Calculator — UK 2025/26 & 2026/27
Rental profits, the post-2020 mortgage interest relief (20% tax credit), and property expenses — know exactly what you owe on your buy-to-let income.
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HMRC 2025/26 & 2026/27 Rates
All tax bands, NI thresholds, and allowances verified against current HMRC published rates.
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Landlord Tax Calculator
UK 2025/26 & 2026/27
Rental profits, mortgage interest relief, property expenses — know exactly what you owe on your buy-to-let income.
How rental income tax works.
Rental profit = gross rent minus allowable expenses. Taxed at your marginal rate. Mortgage interest is a separate 20% tax credit.
Mortgage Relief
20%
Tax credit on interest
Personal Allowance
£12,570
Tax-free threshold
Tapering
£100k
Allowance reduces above
How does mortgage interest tax relief work for landlords?
Since April 2020 (the “Section 24” rule), landlords can no longer deduct mortgage interest from rental income before tax. Instead, you work out tax on the full rental profit and then reduce your tax bill by a 20% tax credit on the mortgage interest you paid. For basic-rate taxpayers the effect is broadly neutral, but higher- and additional-rate landlords now pay more than they did before the change — because relief is capped at 20% rather than their marginal rate. This calculator applies the 20% credit automatically.
Worked example · higher-rate landlord
- Rental income£18,000
- Less allowable expenses (repairs, fees, insurance)£3,000
- Taxable rental profit£15,000
- Tax on profit at 40%£6,000.00
- Less 20% credit on £6,000 mortgage interest−£1,200.00
- Tax due on rental income£4,800.00
Assumes the rental profit sits on top of other income that already uses your £12,570 personal allowance.
Built & maintained by Omkar Sarswat · figures reviewed against HMRC guidance, April 2026.
Common questions. Clear answers.
How much tax do landlords pay on rental income in the UK?+
Rental profit (income minus allowable expenses) is added to your other income and taxed at your marginal rate: 20% basic, 40% higher, or 45% additional rate. You also get a 20% tax credit on mortgage interest payments.
What expenses can landlords claim against rental income?+
You can claim letting agent fees, property maintenance and repairs, insurance, ground rent, service charges, accountancy fees, legal fees for tenancy agreements, advertising for tenants, and utility bills you pay. You cannot claim for property improvements or mortgage capital repayments.
How does mortgage interest relief work for landlords?+
Since April 2020, mortgage interest is no longer deductible from rental income. Instead, landlords receive a 20% tax credit on mortgage interest payments. This means higher-rate taxpayers pay more than before the rule change.
Do I need to file Self Assessment as a landlord?+
Yes, if your rental income exceeds £1,000 per year (the property allowance). You must register for Self Assessment and file a return. Rental income is reported on the SA105 property pages of your tax return.
What is the property income allowance?+
The property income allowance is £1,000. If your gross rental income is under £1,000 you don't need to declare it. If it exceeds £1,000 you can either deduct the £1,000 allowance or claim actual expenses — whichever is more beneficial.