Hundred SummersRental income tax calculator: including the April 2027 surcharge
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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Worked example
Computed when this page was built by the same engine that runs the calculator above, so the figures below and the live tool can never disagree. Change any input above to see your own.
| Inputs | |
|---|---|
| Other income | £40,000 |
| Rental profit | £12,000 |
| Scottish taxpayer | No |
| Results | |
|---|---|
| Tax on the rental profit now | £2,746 |
| April 2027 property surcharge | £240 |
| Tax from April 2027 | £2,986 |
| Kept | £9,254 |
| Effective rate | 22.9% |
The next question
What would a lodger make tax-free? →Rent a room calculator
Or answer it with everything else: the full Hundred Summers plan connects your pay, pensions, savings, property, tax and spending year by year, and stress-tests them across 500 simulated market histories.
Read the guide
- Buy-to-let in 2026: the tax, the surcharge, and the sale →Section 24 explained with real numbers, why a higher-rate landlord can lose money on a property that makes a cash profit, plus the additional-property stamp duty, the April 2027 surcharge, and capital gains tax when you sell.
Why landlord tax keeps surprising people
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).