£9,000 Rental Income After Tax 2025-26
£60,000 salary · Buy-to-let landlord · UK 2025-26
Rental income breakdown 2025-26
| Gross rental income | £9,000 |
| Allowable expenses (15%) | -£1,350 |
| Rental profit (taxable) | £7,650 |
| Extra income tax on rental | -£3,060 |
| Net rental profit after tax | £4,590 |
Expenses assumed at 15% of gross rent (letting agent fees, repairs, insurance). Mortgage interest credit not included — deduct 20% of mortgage interest from your final tax bill.
Income tax comparison — salary vs salary + rental
| Item | Salary only (£60,000) | Salary + rental (£67,650) |
|---|---|---|
| Gross income | £60,000 | £67,650 |
| Income Tax | -£11,432 | -£14,492 |
| National Insurance | -£3,211 | -£3,211 (unchanged) |
| Extra tax from rental income | — | +£3,060 |
Marginal tax rate on rental income
Your rental profit pushes income into or above the Higher Rate band — taxed at 40%.
How is buy-to-let rental income taxed?
Rental profit is added to your other income and taxed at your marginal income tax rate. With £9,000 gross rental income and allowable expenses of £1,350 (15%), your taxable rental profit is £7,650. This is added to your £60,000 salary, giving a combined taxable income of £67,650.
The extra income tax you pay because of the rental income is £3,060, leaving a net rental profit of £4,590. Your effective rental tax rate is 40.0%.
Allowable expenses
HMRC allows landlords to deduct certain expenses from rental income before calculating tax. These include letting agent fees, repairs and maintenance (not capital improvements), landlord insurance, council tax (when paid by the landlord), accountancy fees, and travel costs to the property. Extensions and major refurbishments cannot be deducted but may reduce Capital Gains Tax when you sell. This calculator assumes 15% of gross rent as a representative allowable expense figure.
Mortgage interest relief — 20% tax credit
Since April 2020, landlords can no longer deduct mortgage interest directly from rental profit. Instead, you receive a tax credit equal to 20% (basic rate) of your mortgage interest payments. If your mortgage interest is, for example, £5,000 per year, you deduct £1,000 (20% of £5,000) from your final income tax bill. Higher-rate taxpayers are most affected: where they previously saved 40p per £1 of interest, they now only save 20p.
Self Assessment — mandatory for landlords
All landlords with gross rental income above £2,500 per year (after expenses) must file a Self Assessment tax return. Register with HMRC by 5 October following the end of the tax year. Tax is payable by 31 January (online return deadline) and may include payments on account for the following year.
Frequently asked questions
How much tax do I pay on £9,000 rental income?
With £9,000 rental income with a £60,000 salary, your rental profit after 15% allowable expenses is £7,650. The extra income tax on this rental profit is £3,060, leaving a net rental profit of £4,590. Your effective tax rate on the rental income is 40.0%.
Can I deduct mortgage interest on a buy-to-let property?
Since April 2020, mortgage interest is no longer fully deductible from rental income for individual landlords. Instead, you receive a tax credit equal to 20% of your mortgage interest payments. This means higher-rate taxpayers effectively pay 20% on the portion of rental profit covered by mortgage interest. The figures on this page assume no mortgage interest — deduct 20% of your actual mortgage interest from your final tax bill to get your true liability.
Do I need to file a Self Assessment for rental income?
Yes. If your gross rental income exceeds £2,500 per year (after expenses), you must register for Self Assessment and file a tax return by 31 January following the end of the tax year. Even below this threshold, you should report it via HMRC's Let Property Campaign if you have undeclared rental income. PAYE alone does not cover rental income.