🧾 Tax
Rental Income Tax
Calculator
Estimate your federal tax liability on rental income after all allowable deductions. Know your real after-tax returns before you invest.
Rental income is reported on Schedule E of your federal tax return. You can deduct mortgage interest, property taxes, insurance, repairs, depreciation, management fees, and more. This calculator estimates your net taxable rental income and the resulting tax liability.
⚠️ This is an estimate only. Rental tax law is complex — passive activity rules, material participation, the $25,000 rental loss allowance, and QBI deductions all affect your actual liability. Consult a CPA for your specific situation.
🔧 Deductible Expenses (Annual)
Net Taxable Rental Income
$0
Estimated federal tax: $0
Effective Gross Income
$0
After vacancy
Total Deductions
$0
All allowable expenses
Federal Tax Owed
$0
At your bracket
After-Tax Cash Flow
$0
Rent minus expenses minus tax
Schedule E Summary
Gross Rental Income—
— Vacancy Loss—
= Effective Gross Income—
— Mortgage Interest—
— Property Taxes—
— Insurance—
— Management, Repairs, Other—
— Depreciation—
= Net Rental Income (Loss)—
Federal Tax (at bracket)—
State Tax—
Track rental income and expenses automatically
Stessa is free landlord accounting software that tracks income, expenses, and depreciation automatically — making tax time much easier.
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Frequently Asked Questions
What expenses can I deduct on rental property taxes? ▾
Deductible rental expenses include: mortgage interest, property taxes, insurance premiums, property management fees, repairs and maintenance (not capital improvements), depreciation, advertising, professional fees (attorney, CPA), HOA dues, utilities paid by landlord, travel expenses for property management, and home office (if applicable). Capital improvements (new roof, addition, major renovation) must be depreciated over time, not deducted in the year spent.
What is the $25,000 rental loss allowance? ▾
If you actively participate in managing your rental (make management decisions) and your modified adjusted gross income (MAGI) is under $100,000, you can deduct up to $25,000 of rental losses against your ordinary income. The allowance phases out between $100k-$150k MAGI and disappears above $150k. Real estate professionals who spend 750+ hours/year in real estate activities can deduct unlimited rental losses.
How does depreciation reduce my rental taxes? ▾
Depreciation is a non-cash deduction that reduces taxable rental income without requiring you to spend money. If your property generates $5,000 in cash flow but your depreciation deduction is $9,000, you show a $4,000 paper loss on your taxes even though you received $5,000 in cash. This is one of real estate's most powerful tax advantages — you earn income but show a loss for tax purposes.