Rental Income Tax Calculator

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Rental Income Tax Calculator

Tax payable

It is worth noting that you should always refer to the government website to find the most up to date information on rental income tax and personal income tax and the above calculator is based on the tax bands as if you had your property listed in your personal name.

*your total earned income should include what you make per month with your rental income and personal income from a job and any other income sources combined.

How to use our rental income tax calculator

Our Rental Income Tax Calculator is designed to help landlords and property owners estimate their tax liability on rental income. By providing a few key details about your rental property, income, and expenses, this calculator will calculate an estimate of the amount of tax you may need to pay. 

It's important to note that this is a simplified calculation, and your actual tax liability may vary based on your specific circumstances and any additional income or deductions you may have.

Don't want to deal with rental income yourself?

Reach out to a member of the Cozee team and we'll help you sort out your rental tax

However, this calculator can serve as a useful tool to help you understand your potential tax obligations and plan accordingly. Also, there are other taxes you should be aware of when buying and selling house such as Stemp Duty that you can read about here and here.

Gather all the information about the property

Before using the calculator, make sure you have all the necessary information about your rental property and income handy. This includes details about your rental income, total earned income, mortgage payments, and allowable expenses. Read more about this directly here.

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Input your rental income

In the first input box labelled "Monthly Rental Income," enter the amount of rental income you receive from your tenants each month. This should include any payments for the use of furniture, charges for additional services such as cleaning, hot water, heating, and repairs to the property.

Input your total earned income

In the second input box labelled "Total Earned Income," enter your total earned income for the year. This should include your rental income, as well as any income from employment, self-employment, pensions, or other sources.

Input your monthly mortgage repayments

In the third input box labelled "Monthly Mortgage Interest," enter the amount you pay in mortgage interest for your rental property each month. This represents the interest portion of your monthly mortgage payment, which is an allowable expense.

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Think about your allowable expenses

In the fourth input box labelled "Other Monthly Rental Expenses," enter the total amount of other allowable expenses you incur each month in relation to your rental property. Allowable expenses should include:

Insurance: Landlord insurance, buildings and contents insurance, rent protection

  • Letting agent fees
  • Ground rent and service charges
  • Service fees: Cleaning and gardening fees, decorating fees, and ground rent and service charges for leased properties
  • Professional fees: Cost of accountants, surveyors, and solicitors. Any legal fees for lets of a year or less, for renewing a lease of fewer than 50 years, for rent collection or for any evictions are claimable. However, you cannot claim any legal fees in relation to the purchase of the property.
  • Marketing: The cost of advertising for tenants
  • Office costs: Stationery, broadband and phone calls, directly used for your property business
  • Travel costs: Petrol, trains
  • Repairs: These can only include repairs or replacements that are not classed as improvements to the property and which will not add value
  • Property taxes and bills: These include council tax charges and utility bills

Unsure what your allowable expenses are?

Allow Cozee to help you with calculating tax

Calculate using the calculate button

Once you have entered all the necessary information in the input boxes, click the "Calculate" button. The calculator will then use the entered values to calculate your tax payable and display the result in the "Tax Payable" field. It will also display your total earned income in the "Total Earned Income" field.

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Remember, this calculator provides a basic estimate based on the inputs you provide. It's always advisable to consult with tax professionals or refer to official government resources for more accurate and up-to-date information on rental income tax calculations. Once you're sure about the figure you must pay, visit the government website using this link to make a tax self asessment.

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