Should I Rent?

UK rental property tax calculator · 2026/27

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Tests pension rates 8–12% and rental amounts ±10% to find your optimal position. Your data stays in your browser.

UK Rental Property Tax Calculator 2026/27

Enter your salary, mortgage details, and expected rent to see your monthly cash flow, income tax liability, and wealth-building position — including pension optimisation and equity growth.

Is renting out your property worth it?
For higher-rate taxpayers (over £50,270), buy-to-let is significantly less profitable than it used to be. Section 24 restricts mortgage interest relief to a 20% basic-rate credit, meaning a 40% taxpayer pays tax on rental profit before deducting interest. If your income is between £100,000 and £125,140, rental income can push you into the 60% tax trap — losing £1 of personal allowance for every £2 earned.
How couples can reduce their tax bill
Putting the property in the lower-earning partner's name often reduces the overall tax bill. Married couples and civil partners can transfer property between themselves free of Capital Gains Tax (CGT). Unmarried partners face CGT on any gain, so a transfer only makes sense if the long-term tax saving exceeds the one-off CGT cost.

Frequently asked questions

Calculations are based on 2026/27 UK tax rates and rules. This tool is for illustrative purposes only and does not constitute financial or tax advice. Consult a qualified tax adviser for personal recommendations.