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Landlord tax calculator

Estimate your UK rental income tax liability for 2025–26. Accounts for Section 24 mortgage interest relief, allowable expenses, and your overall income tax band.

Tax year 2025–26 (6 April 2025 – 5 April 2026)

Annual rental income (gross)— total rent received before any deductions

Allowable expenses (excluding mortgage interest)— repairs, insurance, agent fees, etc.

Mortgage interest paid (annual)— Section 24 gives a 20% tax credit on this

Other taxable income— employment, pensions, self-employment, etc.

How Section 24 mortgage interest relief works

Since April 2020, landlords can no longer deduct mortgage interest from rental income before calculating tax. Instead, you receive a 20% tax credit on your mortgage interest payments — regardless of your tax band.

This particularly affects higher and additional rate taxpayers. A landlord in the 40% band previously got 40% relief on mortgage interest — now they only get 20%, making leveraged property more expensive to hold.

What counts as an allowable expense?

Letting agent fees

Property repairs & maintenance

Buildings & contents insurance

Accountancy and professional fees

Ground rent & service charges

Council tax (if paid by landlord)

Utility bills (if paid by landlord)

Advertising costs

Travel to inspect or maintain property

Replacement of domestic items

Mortgage interest is not an allowable expense under Section 24 — it is replaced by a 20% tax credit.