Real Estate & Buy-to-Let Tax · 2026
Calculate Tax on Rental Income,for properties worldwide.
Accurately estimate property rental income tax, allowable deductions, mortgage interest relief, depreciation, and net after-tax cashflow across 111+ countries.
✓Section 24 & Mortgage Interest: Specialized relief rules for UK, US, Germany & India.
✓Building Depreciation: 27.5-year US straight-line, German AfA (2-3%), Canada CCA & Aussie Division 43.
✓Australian Negative Gearing: Immediate tax offset against active employment income.
✓Special Flat Tax Regimes: Italy Cedolare Secca (21%), France Micro-BIC & Spanish 50% discount.
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Calculate Rental Tax
Per Year
Allowable Deductions & Operating Expenses
#1 Net Annual Cashflow
$14,495
Net Monthly Cashflow: $1,208/mo
Gross Revenue:$36,000
#2 Effective Rental Tax Rate
10.8%
Tax on Net Profit: 30.3%
Total Tax Payable:$3,905
#3 Net Rental Cashflow Yield
40.3%
Operating Expense Ratio: 48.9%
Total Deductions:$23,100
🇺🇸 United States Real Estate Tax Rules (2026)
- Mortgage interest, property taxes, repairs, and management fees are 100% deductible against rental income.
- Residential property can be depreciated over 27.5 years (3.636% per year on structure value).
- Net Investment Income Tax (NIIT) of 3.8% applies on net rental income if MAGI exceeds $200,000 ($250,000 married).
- Pro Tip: Passive Activity Loss rules: Rental losses up to $25,000 can offset active W-2 income if MAGI is under $100,000.
Rental Income & Expense Breakdown
| Item Description | Category | Annual Amount | Monthly Equivalent |
|---|---|---|---|
| Gross Annual Rental Revenue | income | $36,000 | $3,000 |
| Property Taxes / Municipal Rates | expense | $3,200 | $267 |
| Repairs, Maintenance & Insurance | expense | $2,400 | $200 |
| Management & Letting Fees | expense | $2,800 | $233 |
| Other Operating Expenses | expense | $1,200 | $100 |
| Mortgage Interest Paid | expense | $8,000 | $667 |
| Building Depreciation / Capital Allowances | deduction | $5,500 | $458 |
| Net Taxable Rental Profit | net | $12,900 | $1,075 |
| National / Federal Rental Tax | tax | $2,838 | $237 |
| State / Provincial Rental Tax | tax | $1,067 | $89 |
| Total Rental Income Tax Payable | tax | $3,905 | $325 |
| Net After-Tax Annual Cashflow | net | $14,495 | $1,208 |
Global Rental Tax Comparison
Compare effective tax rates, interest deductibility, and depreciation policies across premier property investment markets.
| Country | Rental Tax Regime | Interest Deductible? | Building Depreciation | Top Marginal Rate |
|---|---|---|---|---|
| 🇺🇸 United States | Ordinary federal + state | 100% Deductible | 27.5 yrs (3.636%/yr) | 37% + State |
| 🇬🇧 United Kingdom | Section 24 (Finance Act) | 20% Basic Tax Credit | None on structure | 45% |
| 🇩🇪 Germany | Einkünfte aus Vermietung | 100% Deductible | 2% to 3% linear AfA | 45% + SolZ |
| 🇦🇺 Australia | Negative Gearing active | 100% Deductible | 2.5% Capital Works | 45% + 2% Med |
| 🇫🇷 France | LMNP / Micro-BIC / Réel | Deductible under Réel | Component LMNP | 45% + 17.2% |
| 🇪🇸 Spain | 50% residential reduction | 100% Deductible | 3% of construction | 47% |
| 🇮🇹 Italy | Cedolare Secca option | No (under flat tax) | No (under flat tax) | 21% Flat |
| 🇮🇳 India | Section 24 (NAV) | Full let-out / ₹2L cap | 30% standard ded. | 30% + cess |
| 🇦🇪 UAE | Zero Tax Haven | N/A (0% tax) | N/A | 0% |
| 🇸🇬 Singapore | Net rental or 15% deemed | 100% Deductible | Industrial only | 24% |