How next April's changes hit your rental income
From April 2027, rental profit is taxed 2p in the pound more. See what it costs you.
Your answer
Enter your rental profit and other income.
About this calculator
For individual landlords in England, Wales and Northern Ireland.
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How it’s worked out
From 6 April 2027, rental profit is taxed at 22%, 42% and 47%, instead of 20%, 40% and 45%. Relief on mortgage interest rises from 20% to 22%. We work out the tax on your rent on top of your other income, both ways.
Worked example
Tax on your rental profit goes from £5,746 to £6,026 a year from 6 April 2027: £280 more.
England, Wales and Northern Ireland · other income £45,000 · same profit both years
| Rental profit before mortgage interest | £20,000 |
|---|---|
| Tax on it now | £6,946 |
| Less mortgage interest relief at 20% | − £1,200 |
| Tax now | £5,746 |
| Tax on it at the new property rates | £7,346 |
| Less mortgage interest relief at 22% | − £1,320 |
| Tax from 6 April 2027 | £6,026 |
Worked out using today's rates and the property rates announced for 6 April 2027.
Questions people ask
Does this apply in Scotland?
Not as announced: Scotland and Wales can set their own rates for property income.
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