How much more tax will you pay on rent from April 2027?
From 6 April 2027 rental profit is taxed at 24%, 44% and 49%, four points above the rates on wages. Enter your figures to see what changes for you.
Your figures for one tax year
Extra income tax in 2027/28
£0
2026/27
2027/28
Tax on your rental profit
2026/27
2027/28
Rental profit
Tax before mortgage relief
Mortgage interest relief
Tax due on rental profit
Do you need to report quarterly?
Making Tax Digital for Income Tax replaces the yearly return with digital records and quarterly updates. It depends on your rent plus any self-employed sales, before expenses.
£
Turnover before expenses. Leave at 0 if none.
£
Rent received plus self-employed sales.
How this is worked out
Your Personal Allowance (£12,570, reduced above £100,000) is set against other income first, then against rental profit.
Rental profit sits on top of other income in the tax bands: basic rate up to £37,700 of taxable income, higher rate up to £125,140, additional rate above.
2026/27 uses 20%, 40% and 45%. 2027/28 uses the property rates of 24%, 44% and 49%.
Mortgage interest relief is a tax credit of 20% of your interest in 2026/27 and 24% in 2027/28, limited to your rental profit and your income above the Personal Allowance.
The 2027/28 rates were announced at the Budget on 28 October 2026 and still need Finance Bill 2026-27 to become law.
Built for taxpayers in England and Northern Ireland. Scotland and Wales can set their own property rates, so check before relying on these figures there.
Not included: savings and dividend income, the £1,000 property allowance, losses brought forward, pension contributions, National Insurance and furnished holiday lets.