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Rental Income Tax Calculator

Rental Income Tax Estimator

Calculate taxable rental income after expenses and depreciation

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Formula

Net Rental Income = Gross Rent - Expenses - Depreciation (building value / 27.5 years)

Frequently Asked Questions

How is rental income taxed?
Net rental income (gross rent minus expenses and depreciation) is taxed as ordinary income at your marginal rate. Depreciation allows you to deduct the building cost over 27.5 years, often creating a paper loss even when cash flow is positive.
What is the $25,000 rental loss allowance?
If you actively participate in managing your rental property and your AGI is under $100,000, you can deduct up to $25,000 of rental losses against ordinary income. This phases out completely at $150,000 AGI.

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