Rental profit is taxed as the top slice of your income, so your salary sets the rate it bears. This calculator charges it on the real bands (rest-of-UK or Scottish) — and shows what changes in April 2027, when the Autumn Budget 2025 adds two percentage points to property income for rUK taxpayers. Your figures never leave your browser.
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Three rules do the damage. Rental profit is the top slice of income, so it bears your highest rate, not your average one. Mortgage interest stopped being deductible for individuals in 2020 — the 20% credit leaves higher-rate landlords paying tax on money the bank keeps. And from April 2027, property income carries a +2pp surcharge for rUK taxpayers, which this page prices via the same engine function the Hundred Summers app charges in every projected year from 2027 on.
Reliefs worth knowing: the £1,000 property allowance (instead of expenses, if your costs are lower), the £7,500 rent-a-room scheme for lodgers in your own home, and the 20% interest credit itself. Selling is a different tax entirely — see the capital gains tax calculator (residential property pays CGT at 18%/24% with a 60-day reporting deadline).
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