Key findings
- For most landlords the rise equals 4% of taxable rental profit. Mortgage interest softens it, because the credit also rises by 4 points.
- Landlords with no other income pay least extra. The Personal Allowance still shields their first £12,570 of profit. £10,000 of profit costs them +£0.
- A basic-rate employee with £10,000 of profit pays +£400. A higher-rate employee pays the same increase in pounds but at a 44% marginal rate.
- Landlords with income between £100,000 and £125,140 face the steepest marginal rates. With £100,000 of other income and £20,000 of profit, the increase is +£800.
The full grid: extra tax per year (no mortgage)
Each cell shows how much more income tax a landlord pays in 2027/28 than in 2026/27 on the same figures. Other income means salary, pension or self-employed profit.
| Other income ↓ / rental profit → | £5,000 | £10,000 | £20,000 | £30,000 | £50,000 | £75,000 |
|---|---|---|---|---|---|---|
| £0 | +£0 | +£0 | +£297 | +£697 | +£1,497 | +£2,497 |
| £12,570 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £20,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £30,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £40,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £50,270 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £60,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £80,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £100,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £125,140 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
| £150,000 | +£200 | +£400 | +£800 | +£1,200 | +£2,000 | +£3,000 |
With a mortgage
| Other income | Rental profit | Mortgage interest | Tax on rent 2026/27 | Tax on rent 2027/28 | Increase |
|---|---|---|---|---|---|
| £60,000 | £20,000 | £9,000 | £6,200 | £6,640 | +£440 |
| £45,000 | £15,000 | £6,000 | £3,746 | £4,106 | +£360 |
| £30,000 | £12,000 | £6,000 | £1,200 | £1,440 | +£240 |
| £90,000 | £40,000 | £20,000 | £17,271 | £18,071 | +£800 |
Interest reduces the increase by 4% of the interest, because the Section 24 credit rises from 20% to 24%.
Methodology
Individual landlord taxed in England, Wales or Northern Ireland. Rental profit means rent less allowable expenses, before finance costs. 2026/27: profit taxed at 20/40/45%, finance credit 20%. 2027/28: property rates 24/44/49%, credit 24%, Personal Allowance set against other income first. Bands of £12,570, £50,270 and £125,140, with the allowance tapered above £100,000. No savings, dividends, pension contributions or Gift Aid. Calculated with the same engine as our landlord tax calculator. Figures rounded to the nearest pound.
Free to use: please cite us
Sources
- GOV.UK: Income Tax rates and allowances, current and past
- HM Treasury: Budget documents, 28 October 2026
- GOV.UK: Tax relief for residential landlords, how it's worked out
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.