Property Tax Calculator 2026
Quickly estimate how much tax you'll pay on rental income
Using the property tax calculator
You’ll need to enter a few details to get your estimate, including the tax year, your total rental income, any allowable expenses, and any other income you have – like a salary, pension, or investments.
The calculator uses this information to work out your profits (income minus expenses) and what tax rate applies in order to show how much property tax you owe, and what you get to keep!
Rental income is currently taxed using the standard Income Tax rates and bands. This is expected to change with the introduction of new dedicated property tax rates in April 2027. We’ll update the calculator when those rates come into effect.
How is property income taxed?
Rental income you get from letting out a property is usually subject to Income Tax. You’ll work out how much property income you earned, deduct any allowable expenses to calculate your profits, and then pay tax on that amount.
The rate of tax you pay on rental earnings depends on the total amount you earn in a year, because any other income (such as a salary) might ‘use up’ your tax bands and allowances.
It’s important to distinguish between ‘property’ income and ‘trading’ income though. Renting out property won’t normally count as ‘trading’ unless you’re doing it as a business, so it isn’t subject to National Insurance!
Airbnb tax calculator
Unless you offer hotel-type services – such as daily cleaning, meals, or reception – your Airbnb hosting income will usually count as ‘property’ income rather than the trading income you get from a business. It’s an important difference, because although property income is still subject to Income Tax, it doesn’t tend to incur National Insurance.
Our calculator will help you estimate how much tax you’ll pay on the profits you get from letting out a property through Airbnb. This will give you a rough idea of how much to put aside, ready to pay your tax bill to HMRC.
FAQs
Individuals currently pay tax on their rental or property income using the same rates as any other type of income. From April 2027, new property tax rates will be introduced for individuals in England, Wales, and Northern Ireland. The new rates will be:
- Basic rate: 22% (instead of 20%)
- Higher rate: 42% (40%)
- Additional rate: 47% (45%)
These rates will only apply to individuals, so if you own property through a limited company then your profits will continue to be subject to Corporation Tax as usual.
It’s worth speaking to an accountant sooner rather than later if you’re a landlord, especially if the new rates will push your tax bill up significantly.
You can deduct any allowable expenses that are wholly and exclusively for the purpose of renting out your property. For example, letting agent fees, landlord insurance, maintenance and repairs – as well as accounting fees.
You generally can’t claim for improvements to the property or for costs that relate to your own personal use.
You can combine the income and expenses from all your UK properties together for the purposes of using this calculator.
Note: If you own overseas rental properties, these must be kept entirely separate from your UK portfolio.
You might! If your gross rental income exceeds £1,000 in a tax year, you must register for Self Assessment. But, some landlords must use MTD Income Tax. We explain this in more detail in a separate article.
The property income allowance lets you earn up to £1,000 from property each year tax-free, without needing to report it. If your rental income is above this, you’ll need to declare it. You can’t claim the allowance and deduct expenses at the same time; so choose whichever is more beneficial!
It’s also worth noting that you won’t get an allowance for each property – just one allowance in a tax year.
Your property profit is your rental income minus your allowable expenses, and this is the bit you pay tax on. Your take-home pay is what remains after tax has been deducted from that profit.
Looking for more information?
We have a comprehensive range of free resources available
Bookkeeping Guide
Learn the basics of bookkeeping to help you stay on top of the finances and make well-informed decisions in your business.
4 minutes
Quick Tax Saving Tips Guide
Our guide to helping you and your business save money and operate in the most tax efficient way possible.
2 minutes
Making Tax Digital for Income Tax Guide
Learn everything you need to know about Making Tax Digital for IT.
2 minutes
Hot off the press
What Happens If I’m VAT Registered and Sell Through an Online Marketplace?
24 September 2026
Read More
