Rental Income Tax Calculator
Calculate your net rental income or loss and estimate your tax liability — including passive loss allowance rules for rental property owners.
Rental Income
Total rent collected for the year
Your total AGI — affects passive loss allowance
Rental Expenses
Annual depreciation (residential: cost ÷ 27.5 years)
HOA fees, utilities, advertising, legal, etc.
Marginal Tax Rate
Select your federal marginal tax bracket
How Rental Income Is Taxed
Rental income is generally considered passive income by the IRS. You report all rental income and can deduct ordinary and necessary expenses to determine your net rental income or loss.
Common Deductible Expenses
- Mortgage interest on the rental property
- Property taxes
- Insurance premiums
- Repairs and maintenance (not improvements)
- Property management fees
- Depreciation (residential property: cost ÷ 27.5 years)
- Utilities paid by landlord, HOA fees, advertising
Passive Loss Allowance
If your rental expenses exceed income, you may deduct up to $25,000 in passive rental losses against other income — but only if you actively participate in managing the property and your AGI is under $150,000. The allowance phases out between $100K and $150K AGI ($1 reduction per $2 over $100K). Losses above the allowance are suspended and carry forward to future years.