Buy-to-let tax calculator

Property Information


Apply for a buy to let mortgage

Please note that this calculator is for guidance purposes only. It does not account for all possible circumstances or future changes in tax rates and allowances, and is meant to give only a general indication of tax liability now and in future years. For in-depth personal guidance, consult a professional accountant or tax advisor.

Working out tax on your buy-to-let income

The buy-to-let tax calculator will give you a good indication of the amount of tax you may need to pay on your rental income for the 2016–17 tax year. Checking your tax commitment is a sensible step and especially relevant post the section 24 judicial review update.

Are you up to date on buy to let & landlord taxation?

George Osborne made a massive change to buy-to-let mortgage interest tax relief which will reduce the allowance to 20% by 2020. 

Learn more about landlord tax

Read more about the potential impact of changes to buy to let tax relief from the 2015 Budget onwards. 2015 and 2016 were important years for rental property tax issues.

Can we find you a mortgage with lower monthly payments?

Using the Landlord tax calculator

First, input your annual rental income.

Next, input any other annual income you receive that is subject to UK tax, as well as any allowable expenses you intend to offset.

Allowable expenses include:

  • Accountancy
  • Agency and solicitor's fees
  • Council tax payments
  • General business expenditures (such as advertising, stationery, telephone calls and travel)
  • Ground rent
  • Landlord’s insurance premiums
  • Maintenance and general repairs
  • Service charges and utility bills

Finally, if you qualify for Married Couple’s Allowance and/or Blind Person’s Allowance, check the corresponding boxes.

Please note that this calculator makes standard assumptions to estimate your tax bill.

Landlord tax after buy to let interest relief withdrawal 

Starting in the 2017–18 tax year, HMRC will incrementally restrict tax relief for buy-to-let mortgage interest.

The amount on which you can claim relief will be reduced as follows:

  • 75% in 2017–18
  • 50% in 2018–19
  • 25% in 2019–20
  • 0% in 2020–21 onwards

In its place, individuals will be able to claim a tax reduction, which will be calculated as 20% of the lower of:

  • Finance costs not offset against income in the tax year
  • Total taxable profits of the property business in the tax year*
  • Total income (excluding that from dividends and savings) that exceeds the personal allowance and blind person's allowance (if applicable) in the tax year


* If this is the figure used, any excess mortgage interest may be carried forward to the following year

Use the 'tax year' field to get a general indication of the tax impact of the changes to buy to let mortgage interest relief in a given tax year.

Talk to an advisor about current buy to let mortgage options

Additional calculators

Buy to let mortgage calculator

Calculate your monthly repayments for an interest only or capital repayment Buy to let mortgage.

Load this calculator

Buy to let rent calculator

Calculate how much rent you may need to charge based upon the size of your mortgage loan.

Load this calculator

Rent affordability calculator

Find out if your tenant(s) will be able to comfortably afford your monthly rent using our Buy to Let rent affordability calculator

Load this calculator

Rental yield calculator

Establish if you will achieve a profitable return on investment from property purchase with our yield calculator.

Load this calculator

Stamp duty calculator

Most landlords need to pay extra stamp duty land tax (SDLT) on buy-to-let property acquisitions. Use our stamp duty calculator to find out how much you need to pay.

Load this calculator

LTV calculator

For buy-to-let investors, an LTV calculator can be an invaluable tool to check the ratio between the value of their property and the debt secured against it.

Load this calculator