Tax on £6,000 of Rent a Room income with a £30,000 salary (2026-27)
£6,000 of rent from a lodger is below the £7,500 Rent a Room threshold, so it is tax-free and the exemption is automatic. Your £30,000 salary is taxed as usual.
| Rent received in the year | £6,000 |
| Rent a Room tax-free threshold | £7,500 |
| Taxable rent | £0 |
| Salary | £30,000 |
| Income Tax on the rent | £0 |
| Rent kept after tax | £6,000 |
How this is worked out
The Rent a Room Scheme lets you earn up to £7,500 a year tax-free from furnished accommodation in your own home, or half that if you share the income with someone else. Below the threshold the exemption is automatic.
Above it you complete a tax return and either opt in, paying tax on rent above £7,500, or opt out and deduct your actual expenses instead. Opting out only lowers the bill if your expenses are more than £7,500.
The tax shown is the extra Income Tax once the taxable rent is added to your salary, so it uses your marginal band. Assumptions: England, 2026-27 rates, tax code 1257L, sole recipient of the rent, no other income.
Sources: Rent a room in your home: the Rent a Room Scheme (GOV.UK), Income Tax rates and allowances (GOV.UK)