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TaxesRental Property Income Tax Calculator
By Cedrick Reese, Property Rental Calculator
Free calculator that estimates your federal tax on rental income, or your deductible loss, instantly.
Rental & other income
$
$
Mortgage interest, taxes, insurance, repairs, management, everything Schedule E allows except depreciation.
$
From the Depreciation Calculator.
$
Taxable income from everything else, after your standard or itemized deduction, not counting this rental.
Enter your other taxable income to see an estimate.
Results
Estimated federal tax on this rental income–
Loss allowed this year–
Net rental income–
Total deductions–
Suspended, carries forward–
A simplified federal estimate: a marginal-rate stacking calculation, not a full return. It doesn't model the Section 199A (QBI) deduction, state tax, self-employment tax, AMT, or the more favorable rules for a qualifying real estate professional. Educational only, not tax advice. Last reviewed September 2026.
How to use this calculator
Enter your annual rental income, expenses, and depreciation, plus your other taxable income and filing status. The tool shows the estimated federal tax on rental profit, or the loss you can deduct this year, as you type.
How this is calculated
Net rental income (rent minus expenses minus depreciation) is taxed at your ordinary marginal rate, the same brackets as your job or any other income, stacked on top of what you'd owe without it. If expenses and depreciation exceed rental income, you have a passive loss instead. Active participants can generally deduct up to $25,000 of that loss against other income each year, but the allowance phases out for income between $100,000 and $150,000 of modified adjusted gross income (used here as an approximation of your "other taxable income"), phasing out 50 cents for every dollar over $100,000. Anything not allowed this year carries forward. See how rental income actually gets taxed for the full mechanics.
A worked example
$24,000 of rental income, $9,000 of expenses, and $8,700 of depreciation nets to $6,300 of taxable rental income. Stacked on top of $90,000 of other taxable income (single filer), that $6,300 falls entirely in the 22% bracket, for an estimated $1,386 in federal tax.
Common questions
Is rental income taxed differently than my job's income?
No. Net rental income is ordinary income, taxed at your regular marginal rate. It isn't a capital gain, and for a typical passive landlord it isn't subject to self-employment tax.
What if my rental loses money on paper?
If you actively participate, you can generally deduct up to $25,000 of the loss against your other income, phased out between $100,000 and $150,000 of MAGI. Real estate professionals who materially participate have different, generally more favorable rules not modeled here. See the full explanation.
Does this include state tax?
No, federal only. Add your state's rate on top for a fuller picture.
Does this account for the 20% QBI deduction?
Not modeled. Many rental activities qualify for the Section 199A qualified business income deduction, which could meaningfully lower this estimate, but qualifying depends on your specific facts. Confirm with a CPA.
How this is built and kept current
Cedrick Reese, a web developer, built this calculator on the same bracket-stacking math the IRS uses to tax ordinary income, using the Tax Foundation's published 2026 bracket tables and IRS Publication 925 for the passive-loss allowance rules. The bracket figures and the $25,000 allowance's phase-out range get rechecked and updated whenever the IRS releases new numbers or the underlying law changes.
Sources
- Tax Foundation, "2026 Tax Brackets and Federal Income Tax Rates": taxfoundation.org
- IRS Publication 925, "Passive Activity and At-Risk Rules": irs.gov