LANDLORD MONEY · GUIDES & TOOLS
Landlord tax rates
Review the 2026/27 and 2027/28 tax configuration, including what is enacted and what is only announced.
THE DETAIL BEHIND THE NUMBERS
What this means for your calculation
Rates are stored outside the UI with dates and official source links. The source table records what was checked. A band boundary refers to taxable income after the modelled allowance, so it should not be read as a universal gross-income threshold.
In practice
A person with only £50,270 non-savings income and the full £12,570 allowance has £37,700 taxable income and £7,540 estimated Income Tax in the configured year.
Are Scottish rates included?
Not yet. Scotland is an explicit unsupported selection. Tax jurisdiction follows the individual, rather than the address of the rental property.
Configured 2026/27 rates
Dataset 2026-11-04.1.
- Checked on 4 November 2026 against Finance Act 2026 and Budget 2026 OOTLAR Annex A. The 2026/27 main rates, dividend rates, National Insurance and Corporation Tax figures below are unchanged. Property income is still taxed at the main rates. Dividend ordinary and upper rates of 10.75% and 35.75% are enacted by Finance Act 2026 section 4; the dividend additional rate remains 39.35%.
| Rule | Configured value |
|---|---|
| Standard Personal Allowance / taper starts | £12,570 / £100,000 |
| Main rates on non-property income | 20% / 40% / 45% |
| Property income rates | Same as the main rates |
| Taxable basic / higher band upper limits | £37,700 / £125,140 |
| Dividend allowance / rates | £500 / 10.75% / 35.75% / 39.35% |
| Employee NI primary threshold / upper limit | £12,570 / £50,270 |
| Employee NI main / upper rates | 8% / 2% |
| Employer NI secondary threshold / rate | £5,000 / 15% |
| Employment Allowance (if eligible) | £10,500 |
| Property allowance / finance-cost reduction rate | £1,000 / 20% |
| Corporation Tax small / main rate | 19% / 25% |
| Company lower / upper profit thresholds, before adjustments | £50,000 / £250,000 |
| Corporation Tax financial year used | 2026 |
Source register for 2026/27
| Rule / official source | Effective period | Status | Verified |
|---|---|---|---|
| HMRC — Income Tax, Class 1 NI and Employment Allowance | 06 Apr 2026 – 05 Apr 2027 | Published HMRC employer rates for 2026/27 | 04 Nov 2026 |
| HMRC — Income Tax rates and Personal Allowance | 06 Apr 2026 – 05 Apr 2027 | Main rates 20/40/45; allowance £12,570; taper from £100,000 | 04 Nov 2026 |
| Finance Act 2026 s.4 — dividend ordinary and upper rates | 06 Apr 2026 – 05 Apr 2027 | Enacted for 2026-27 and subsequent years. Additional rate unchanged at 39.35% | 04 Nov 2026 |
| HMRC — Tax on dividends | 06 Apr 2026 – 05 Apr 2027 | Allowance £500; ordinary 10.75%, upper 35.75%, additional 39.35% | 04 Nov 2026 |
| HMRC — Corporation Tax rates and allowances | 01 Apr 2026 – 31 Mar 2027 | Financial year 2026: 19% / 25%, limits £50,000 / £250,000 | 04 Nov 2026 |
| HMRC — Marginal Relief | 01 Apr 2026 – 31 Mar 2027 | Standard fraction 3/200. Model assumes no exempt distributions | 04 Nov 2026 |
| HMRC — Property allowance | 06 Apr 2026 – 05 Apr 2027 | £1,000. Cannot be combined with the finance-cost reducer | 04 Nov 2026 |
| HMRC — Residential finance costs, and ITTOIA 2005 s.274AA | 06 Apr 2026 – 05 Apr 2027 | Reducer at the basic rate (20%) for 2026/27. Adjusted total income excludes dividend and savings income | 04 Nov 2026 |
| Budget 2026 OOTLAR Annex A — 2026/27 column | 06 Apr 2026 – 05 Apr 2027 | Confirms 2026/27 main, dividend, NI and Corporation Tax figures. Property rates are not separate until 2027/28 | 04 Nov 2026 |
Configured 2027/28 rates
Dataset 2026-11-04.1.
- 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.
| Rule | Configured value |
|---|---|
| Standard Personal Allowance / taper starts | £12,570 / £100,000 |
| Main rates on non-property income | 20% / 40% / 45% |
| Property income rates | 22% / 42% / 47% |
| Taxable basic / higher band upper limits | £37,700 / £125,140 |
| Dividend allowance / rates | £500 / 10.75% / 35.75% / 39.35% |
| Employee NI primary threshold / upper limit | £12,570 / £50,270 |
| Employee NI main / upper rates | 8% / 2% |
| Employer NI secondary threshold / rate | £5,000 / 15% |
| Employment Allowance (if eligible) | £10,500 |
| Property allowance / finance-cost reduction rate | £1,000 / 22% |
| Corporation Tax small / main rate | 19% / 25% |
| Company lower / upper profit thresholds, before adjustments | £50,000 / £250,000 |
| Corporation Tax financial year used | 2027 |
Source register for 2027/28
| Rule / official source | Effective period | Status | Verified |
|---|---|---|---|
| Finance Act 2026 s.7 — property rates for 2027-28 | 06 Apr 2027 – 05 Apr 2028 | Enacted: property basic 22%, higher 42%, additional 47%. Subject to the unenacted Budget 2026 increase | 04 Nov 2026 |
| Finance Act 2026 s.6 — property income ordering and allowance rule | 06 Apr 2027 – 05 Apr 2028 | Enacted for 2027-28 and subsequent years | 04 Nov 2026 |
| Finance Act 2026 Sch. 1 para. 40 — finance-cost relief at the property basic rate | 06 Apr 2027 – 05 Apr 2028 | Enacted for 2027-28. Relief rate is whatever the property basic rate is | 04 Nov 2026 |
| Finance Act 2026 s.10 — Personal Allowance and basic rate limit frozen | 06 Apr 2027 – 05 Apr 2031 | Enacted: £12,570 and £37,700 through 2030-31 | 04 Nov 2026 |
| Finance Act 2026 s.4 — dividend ordinary and upper rates | 06 Apr 2026 – 05 Apr 2028 | Enacted for 2026-27 and subsequent years. Additional rate remains 39.35%. Allowance remains £500 | 04 Nov 2026 |
| Finance Act 2026 ss.11–12 — Corporation Tax for financial year 2027 | 01 Apr 2027 – 31 Mar 2028 | Enacted: main rate 25%, small profits rate 19%, fraction 3/200 | 04 Nov 2026 |
| Budget 2026 OOTLAR Annex A — rates and allowances | 06 Apr 2027 – 05 Apr 2028 | Official table. Its 24/44/49 property column is the announced, not yet enacted, rate | 04 Nov 2026 |
| HMRC — Income Tax: changes to tax rates for property and savings income | 06 Apr 2027 – 05 Apr 2028 | Announced, not enacted: Finance Bill 2026-27 would replace s.7 rates with 24/44/49 | 04 Nov 2026 |
| UK Parliament — Finance Bill 2026-27 | 06 Apr 2027 – 05 Apr 2028 | Introduced. No Royal Assent on 4 November 2026 | 04 Nov 2026 |
| HMRC technical note — property, savings and dividend income (Budget 2025 measure, as enacted) | 06 Apr 2027 – 05 Apr 2028 | Original 22/42/47 policy, now enacted by Finance Act 2026. Later Budget 2026 proposal is separate | 04 Nov 2026 |
| SI 2026/1023 — Scottish and Welsh property-rate power in force for 2027-28 | 06 Apr 2027 – 05 Apr 2028 | Power in force. No confirmed Welsh or Scottish property rate was found | 04 Nov 2026 |
| HMRC — property allowance remains £1,000 (PIM4428) | 06 Apr 2027 – 05 Apr 2028 | Standing £1,000 under ITTOIA 2005 s.783BD. The trading-allowance increase is a different relief | 04 Nov 2026 |
| HMRC — Corporation Tax marginal relief limits | 01 Apr 2027 – 31 Mar 2028 | Lower £50,000 and upper £250,000, also shown for financial year 2027 in OOTLAR Annex A | 04 Nov 2026 |
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.