How much tax do landlords pay on rental income?

How much tax do landlords pay on rental income? Rental profit is taxed at your usual rates outside Scotland: 20%, 40% or 45% in 2026-27. From 6 April 2027, England and Northern Ireland use property rates of 22%, 42% and 47%. Mortgage interest relief rises from 20% to 22%. Not as an expense, if you are an individual landlord. Instead you get a tax reduction worth 20% of the interest for 2026-27, rising to 22% from 2027-28. Companies paying Corporation Tax can still deduct it. Yes. The property allowance lets you earn up to £1,000 a year in property income tax-free. If you claim it, you cannot also deduct your actual expenses, so it suits landlords with very low costs. GOV.UK says you may be able to pay voluntary Class 2 contributions if letting counts as being gainfully employed, for example if it is your main job. If not, you may be able to pay voluntary Class 3 instead. Read the full answer, with every source, at rightotax.co.uk.