Rental Income Tax Calculator (US)

This US rental income tax calculator estimates taxable rental profit after rental expenses and an estimated tax bill based on the rate you enter.

Rental income is not usually taxed on gross rent alone. Expenses such as repairs, insurance, property tax, mortgage interest, management fees, and depreciation may reduce taxable rental income if they qualify.

Use it for planning and comparison only. Passive activity rules, depreciation, cost basis, local taxes, personal use, and IRS reporting rules can make the real tax calculation more complex.

Suppose a property brings in $24,000 of rent during the year. If deductible expenses total $14,000, the estimated taxable rental income is $10,000 before any other limitations or adjustments.

At a 22% assumed tax rate, the estimated tax on that rental profit would be $2,200. If repairs are higher, vacancy increases, or depreciation is included differently, the taxable income can change.

Cash flow and taxable income are related but not identical. A property can have positive cash flow and still need tax planning, or it can show lower taxable income because of depreciation and other deductions.

Keep clean records for rent, repairs, mileage, management fees, insurance, tax, and major improvements. Good records make estimates more useful and reduce surprises at filing time.

Separate repairs from improvements, personal use from rental use, and mortgage interest from principal repayment. These categories can be treated differently for tax and cash-flow purposes.

Vacancy, late rent, deposits, insurance claims, and management fees can also change the picture. A useful estimate starts with clean rental records, not just the rent received.

Use this calculator for a simplified US rental income tax estimate from annual rental income, annual expenses, depreciable property value, and an entered tax rate.

The component estimates depreciation using a 27.5-year residential rental assumption, then subtracts expenses and depreciation before applying the entered tax rate to taxable rental income.

It does not model passive activity loss rules, at-risk rules, land allocation, repairs versus improvements, depreciation recapture, state tax, or full Schedule E treatment.

Use property tax when the question is annual property tax from value and rate, not rental income tax.

Label saved scenarios with income, expense categories, depreciable basis, land exclusion assumption, and tax rate used.

Entering the full property value as depreciable basis when land value should be excluded.

Deducting full mortgage payment as an expense instead of separating interest, principal, escrow, and other items correctly.

Assuming all repairs, improvements, travel, personal-use days, and vacancy periods are handled automatically.

Using this page to estimate cash-on-cash return or rental yield. It focuses on simplified taxable rental income and after-tax cash flow.

Forgetting that passive losses, depreciation recapture, state tax, and sale-of-property tax are outside the component.

Example: enter $24,000 of annual rental income, $6,000 of annual expenses, $300,000 of depreciable property value, and a 22% estimated tax rate.

The calculator estimates annual depreciation, taxable rental income after expenses and depreciation, estimated tax owed, and after-tax cash flow.

Change expenses and depreciable basis separately so you can see whether tax is moving because of operating costs or depreciation assumptions.

If your actual property has land value, improvement costs, or partial-year rental use, adjust the input before relying on the result.

Use property tax to estimate the annual property tax expense that may feed into rental expenses.

Use net investment income tax if rental income may be part of an NIIT question.

Use federal income tax when you need broader income-tax context before choosing a manual rate.

Use capital gains tax us only for a sale scenario; rental operations and sale gains are different calculations.

Check rent received, management fees, repairs, insurance, property tax, mortgage interest, HOA fees, and other operating costs.

Check building value separately from land value before entering depreciable property value.

Check whether passive loss limits, at-risk rules, personal-use days, or improvements require a more detailed Schedule E workflow.

Rerun this rental income tax calculator when rent, expenses, depreciable basis, or estimated tax rate changes.

Recheck after major repairs, new tenants, refinancing, reassessment, or year-end bookkeeping updates.

If this estimate differs from tax software, trace income, expenses, depreciation basis, land allocation, passive-loss treatment, and tax rate separately.