LANDLORD MONEY · GUIDES & TOOLS

Landlord tax in 2027/28

Calculate the enacted property-income rates, and see the Budget increase that is not yet law.

FROM RENT TO REAL INCOME

Your landlord take-home calculator.

Start with one property. The estimate updates as you type.

Tax year

Estimates only, not professional advice. Check the assumptions and current HMRC rules, and obtain qualified advice before filing tax returns or making property, finance or dividend decisions. Read our terms and limits of responsibility.

Legislative notes for 2027/28

Enacted property rates for 2027/28 are 22%, 42% and 47% (Finance Act 2026, section 7). Finance-cost relief is the property basic rate of 22% (Finance Act 2026, Schedule 1, paragraph 40). The Personal Allowance is used against income that is not property, savings or dividend income before it is used against property or dividends (Finance Act 2026, section 6).
Not yet law: Budget 2026 on 28 October 2026 announced property rates of 24%, 44% and 49%, and savings rates of 24%, 44% and 49%, from 6 April 2027. They are to be included in Finance Bill 2026-27, which had not received Royal Assent on 4 November 2026. This calculator does not use 24/44/49. If that Bill is enacted, the finance-cost relief rate follows the new property basic rate.
Main Income Tax rates of 20%, 40% and 45% for 2027/28 are the rates Budget 2026 says Finance Bill 2026-27 will set. They are not yet enacted. The £12,570 Personal Allowance and £37,700 basic-rate limit are enacted by Finance Act 2026 section 10 through 2030/31. The £125,140 higher-rate limit is the figure in Budget 2026 OOTLAR Annex A for both 2026/27 and 2027/28.
Class 1 National Insurance for 2027/28 uses the weekly thresholds and rates in Budget 2026 OOTLAR Annex A. The annual director thresholds are the annual equivalents HMRC already publishes for those same weekly amounts. No separate 2027/28 employer-rates instrument was identified on 4 November 2026.
Wales: SI 2026/1023 brought the Senedd's power to set 2027/28 property rates into force. No confirmed Senedd property-rate resolution was found, so a Welsh resident cannot be calculated. Scotland is unsupported. Savings income and the Pension Tax Allowance in Finance Bill 2026-27 are not modelled. The trading allowance increase to £3,000 does not change the £1,000 property allowance.

Import properties from a saved file

Import action Choose a property export (JSON, max 256 KB)

What is saved in the file?

Property references, ownership, rent, mortgage and cost inputs are saved in a JSON file. Personal income, company extraction settings and transfer-planner budgets are not included. Files contain financial information and are not encrypted; keep them private. Importing sends the file to this calculator session for processing, without saving it to a database.

Your properties

1 property

Edit one property at a time. Your whole portfolio stays in the estimate.

PERSONALLY OWNED

Property reference Ownership

Monthly rent £ / month

Void period % of year

Property value & mortgage

Property value £

Mortgage balance £

Interest rate % per year

Mortgage type Enter actual annual interest

Actual mortgage interest £ / year

Your beneficial income share %

For repayment mortgages, use actual annual interest from your lender. Balance × rate is only a simple estimate. Capital repayment reduces cash, not taxable profit.

Running costs £3,000 / year

Enter costs

Management fees £

Insurance £

Repairs & maintenance £

Service charges £

Ground rent £

Licensing £

Accountancy / professional £

Utilities you pay £

Other allowable costs £

Non-allowable cash costs £

Enter positive amounts. Exclude mortgage interest and principal here. Changing frequency reinterprets the entered amounts.

Your wider income & tax position

Other employment / PAYE income £ / year, gross

Tax residence

Other income, allowances & limitations

Other non-savings income £ / year

Taxable pension income £ / year

Other net property profit £ / year

Other dividends £ / year

Savings income (not supported) £ / year

Unused finance costs brought forward £

UK property loss brought forward £

Personal expense treatment

Eligible for property allowance (no excluded connected-party/employer receipts or Rent a Room treatment) I have non-residence, trusts, partnerships, mixed-use property, pension contributions, Gift Aid, benefits or other complex reliefs

Other property profit affects your tax bands but is not included in portfolio cash. Enter all modelled personal finance costs in the property cards. Only simple UK property losses are supported.

Figures update when you change an input. Use non-identifying property labels only.

YOUR ESTIMATED TAKE-HOME2027/28

£495.00/ month

£5,940.00 per year · personal cash

Retained inside your company£0.00 / year

Company cash is separate from money in your pocket.

Where your rent goes

Annual portfolio cash flow

Rent received: £24,000.00
Running costs: −£3,000.00
Mortgage interest: −£8,000.00
Mortgage capital repaid: −£0.00
Cash profit before tax: £13,000.00
Personal property tax: £7,060.00
Corporation Tax: £0.00
Employer NI: £0.00
Employee NI & extraction tax: £0.00
Total tax & NI: £7,060.00
Personal cash + company cash: £5,940.00

Personal cash
Company cash
Tax and NI

For every £100 of cash profit

£54.31 tax · £45.69 personal · £0.00 company

Tax calculation breakdown

Personal taxable property profit (incl. other property): £21,000.00
Tax before finance relief (incremental): £8,820.00
Finance-cost reduction: £1,760.00
Unused finance costs carried forward: £0.00
Property losses carried forward: £0.00
Personal Allowance (before extraction): £12,570.00
Total personal Income Tax after finance relief (before extraction): £18,492.00
Company taxable profit: £0.00
Corporation Tax effective rate: 0.00%
Gross salary: £0.00
Employer NI: £0.00
Total salary company cost: £0.00
Incremental salary Income Tax: £0.00
Employee NI: £0.00
Net salary: £0.00
Gross dividend: £0.00
Incremental dividend-related tax: £0.00
Net dividend: £0.00

Personal bands before extraction

Employment, pensions and other non-property income: £37,700.00 at 20% = £7,540.00

Employment, pensions and other non-property income: £9,730.00 at 40% = £3,892.00

Property income: £21,000.00 at 42% = £8,820.00

Why is taxable profit higher than actual profit?

For personal residential lettings, mortgage interest reduces cash but is not deducted from taxable property profit. A separate finance-cost tax reduction applies within limits. Mortgage principal never reduces taxable profit. Explore Section 24.

View assumptions

Tax year 2027-28; England tax residence. UK residential property, annual estimates, no savings income, Gift Aid or pension relief. Property shares are applied before aggregation. Personal expense treatment: ActualExpenses.

Extraction: Dividends. Employment Allowance: NotSure (Not sure means none). Company model: 365 days within financial year 2027; 0 other associates. Standard full-year director NI; no NI deferral for other employments. Other income affects taxes but is excluded from displayed take-home.

Decimal calculations; display rounds to the nearest penny, midpoint away from zero. Capital growth, buying/selling/transfer costs and tax payment timing are excluded. Full methodology · Sources

Tax rates checked 04 Nov 2026 · Sources

Portfolio & property dashboard

Total value £250,000.00Mortgage debt £150,000.00Equity £100,000.00Portfolio LTV 60.0%

Property estimates using your beneficial share. Tax and take-home are allocated from aggregate results; see methodology.
Property	Value / debt / equity	LTV	Rent / month	Annual rent	Costs / interest	Cash profit	Taxable profit	Allocated tax	After-tax cash	Personal / month	Gross / net yield	ROE / after-tax ROE
Property 1 Personal	£250,000.00 £150,000.00 £100,000.00	60.00%	£2,000.00	£24,000.00	£3,000.00 £8,000.00	£13,000.00	£21,000.00	£7,060.00	£5,940.00	£495.00	9.60% 8.40%	13.00% 5.94%

TRANSFER COSTS & PAYBACK

Would moving to a company pay back?

Open transfer costs, savings and ROI planner

Compare transferring all personally owned properties to one company, with no director salary. Existing rent, borrowing and company tax settings are the starting point.

Landlord Money cannot currently model this situation accurately. Transfer estimates currently support 2026/27 only.

THE DETAIL BEHIND THE NUMBERS

What this means for your calculation

From 6 April 2027, Finance Act 2026 taxes property income at 22%, 42% and 47% and gives residential finance-cost relief at the 22% property basic rate. The Personal Allowance is used against employment, pensions and other non-property income before property income or dividends. Budget 2026 has announced 24%, 44% and 49%. That increase is in Finance Bill 2026-27 and is not used here.

Worked example

The same £24,000 rent, £3,000 costs, £8,000 interest and £60,000 salary that leave £6,200 in 2026/27 leave £5,940 under the enacted 2027/28 rates. The £260 difference is the extra 2 points of property tax on £21,000 of profit, less the extra 2 points of finance-cost relief on £8,000 of interest.

Which 2027/28 rate is the law?

22%, 42% and 47% are enacted by Finance Act 2026 section 7. 24%, 44% and 49% were announced on 28 October 2026 and had not received Royal Assent on 4 November 2026. Wales and Scotland are not calculated for 2027/28.

Primary sources

Tax rates last verified: 04 November 2026 · Official sources

Information, not advice. Landlord Money provides estimates for general information and educational purposes only. It does not provide tax, accounting, financial, investment, mortgage or legal advice. Tax treatment depends on individual circumstances and may change. Check calculations with HMRC and consider professional advice before making financial, ownership or tax decisions.