Rental Income Tax Calculator
Estimate your federal income tax liability on rental property income after allowable deductions including mortgage interest, depreciation, repairs, and other expenses.
Formula
Net Rental Income = Gross Rent − (Mortgage Interest + Property Tax + Insurance + Repairs + Depreciation + Other Expenses)
Annual Depreciation = (Property Value − Land Value) ÷ 27.5
Federal Tax on Rental = Tax(Other Income + Net Rental Income) − Tax(Other Income)
Effective Rate = Federal Tax on Rental ÷ Gross Rental Income × 100
Net After-Tax = Gross Rent − Total Deductions − Federal Tax on Rental
Assumptions & References
- Uses 2024 IRS federal income tax brackets (IRS Rev. Proc. 2023-34).
- Residential rental property is depreciated over 27.5 years straight-line per IRS Publication 527.
- Land is not depreciable; only the building/improvement value is used.
- The $25,000 passive activity loss allowance applies to active participants with MAGI ≤ $100,000; phases out between $100,000–$150,000 (IRC §469(i)).
- Losses exceeding the allowance are treated as passive loss carryforwards to future years.
- This calculator does not apply the standard deduction to other income — for a full picture consult a tax professional.
- State and local income taxes on rental income are not included.
- The 3.8% Net Investment Income Tax (NIIT) (IRC §1411) may apply if MAGI exceeds $200,000 (single) / $250,000 (MFJ) — not included here.
- Self-rental and short-term rental rules may differ; consult IRS Publication 527 and 925.