Rental Income Tax Calculator
Estimate your taxable rental income after expenses and depreciation.
Understand your rental property tax obligation.
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Taxable Rental Income
Taxable rental income is your gross rental income minus all allowable expenses and depreciation.
Formula:
Taxable Rental Income = Gross Rent - Operating Expenses - Depreciation
Common deductible rental expenses:
- Mortgage interest (not principal)
- Property taxes
- Insurance
- Repairs and maintenance
- Property management fees (typically 8–12%)
- Utilities (if landlord pays)
- Advertising for tenants
- Travel to/from property
- Professional services (accountant, attorney)
Depreciation:
- Residential property is depreciated over 27.5 years
Annual depreciation = (Property value - Land value) / 27.5- Land is not depreciable (typically 15–25% of purchase price)
Important: This is a simplified estimate. Consult a tax professional for your specific situation, especially regarding passive activity loss rules and depreciation recapture.