Rental Income Tax Calculator
Updated on 22 Oct 2026 · Checked by Aotob
On $8,000 of rental profit you pay about $960 in tax.
That leaves $7,040 a year, on top of a $50,000 salary.
Tax on rental income
$960
Federal only. Depreciation (1/27.5 of the building a year) usually cuts this further; losses are limited if income is over $100,000.
Show the working
18,000 rent − 4,000 costs − 6,000 interest = 8,000
Tax on salary + profit − tax on salary alone = 960
By rent
| Rent a year | Profit | Tax | After tax |
|---|---|---|---|
| 13,500 | 3,500 | 420 | 3,080 |
| 18,000 | 8,000 | 960 | 7,040 |
| 22,500 | 12,500 | 1,500 | 11,000 |
| 27,000 | 17,000 | 2,090 | 14,910 |
| 36,000 | 26,000 | 4,070 | 21,930 |
Questions people ask
Is mortgage interest deductible?
In the US, Canada, Australia, Ireland and New Zealand, yes. In the UK it isn’t: you get a 20% tax credit instead, which costs higher-rate landlords more.
What expenses can I deduct?
Letting agent fees, repairs (not improvements), insurance, property taxes, service charges, accountancy and, in some countries, depreciation.
What if I make a loss?
In Australia and Canada it reduces tax on your salary. In the UK, Ireland and New Zealand losses are carried forward against future rental profits.
Updated 22 Oct 2026Source: National averages and published fee tables, checked October 2026Checked by AotobDefault tax settings for each country (US: federal only, no depreciation).Report an issue