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Free instant rental income tax calculator for India FY 2025-26. Apply 30% deduction, loan interest & property tax. Accurate, no login. Calculate now!
Free rental income tax calculator India FY 2025-26. Apply 30% deduction, home loan interest & property tax. Supports new & old regimes. No login.
Rental income details
Enter annual rent and deductible expenses.
Annual municipal tax or property tax paid
Interest paid on loan for rental property (fully deductible u/s 24(b))
30% Standard Deduction: Applied automatically to Gross Annual Rent (u/s 24(a))
If you own a property that you rent out in India, this calculator works out your exact tax liability under FY 2025-26 rules. It applies the 30% standard deduction automatically, factors in property tax and home loan interest, and shows a full breakdown of your taxable rental income. Nothing you enter is sent to a server — the whole calculation runs in your browser.
A few worked examples showing how rental income tax actually plays out at different income levels under FY 2025-26 rules. Notice how the Section 87A rebate wipes out tax completely below ₹12 lakh of total taxable income.
These examples assume rental income is your only income source and you've opted for the new tax regime. Once you add salary, interest, or other income on top of rental income, your combined total decides whether the ₹12 lakh rebate threshold still applies — use the calculator above with your full income picture for an accurate number.
Calculates taxable rental income using the 30% standard deduction under Section 24(a)
Accounts for Section 24(b) home loan interest, including the loss-set-off difference between regimes
Applies FY 2025-26 new regime tax slabs, the seven-slab structure now in force
Applies the Section 87A rebate so tax is correctly shown as nil where it applies
Adds surcharge based on your total income level
Includes the 4% Health and Education Cess
Shows TDS adjustment under Section 194I or 194IB
Runs entirely in your browser, so your figures stay private
Replace advice from a practicing Chartered Accountant
Calculate old-regime tax in full detail (see our regime comparison tool below)
Calculate capital gains from selling the property
Handle commercial property rentals
Cover NRI-specific tax treatment
Handle multiple properties held in a partnership structure
Account for state-specific local taxes beyond municipal property tax
Most landlords either overpay because they miss deductions they're entitled to, or get the number wrong because they forget the Section 87A rebate cancels out tax entirely below ₹12 lakh. This calculator is built specifically around the rules for "Income from House Property" rather than being a generic income calculator, so every field maps to an actual deduction under the Income Tax Act.
Enter your annual rent, property tax paid, and loan interest. The calculator handles NAV, Section 24 deductions, slabs, rebate, and cess instantly.
Updated for the seven-slab structure, the ₹60,000 Section 87A rebate, and the revised TDS thresholds under Sections 194I and 194IB from the Finance Act 2025.
No login, no server calls. Your rental income figures stay on your device the entire time.
Designed around salaried employees and freelancers with one residential rental property, not adapted from a generic global tool.
A closer look at how rental income tax actually works in India under FY 2025-26 rules, section by section.
Rental income is any money you earn by letting out a property you own — an apartment, a house, or any other real estate leased to a tenant. Under the Income Tax Act, this is taxed under the head "Income from House Property."
The principle is simple: your rental income is added to your total income — salary, interest, anything else — and the combined figure is taxed at progressive slab rates. There's no special flat rate for rental income on its own; it's treated as part of your regular income.
When must you file an ITR? You're required to file once your gross total income exceeds ₹4,00,000 under the new tax regime, or ₹2,50,000 under the old tax regime. There's no separate exemption for rental income — it must be disclosed once you cross the basic exemption limit, regardless of the amount.
Step 1 — Start with gross annual rent. Add up everything received from April to March. A tenant paying ₹1 lakh a month gives you a gross annual rent of ₹12 lakh.
Step 2 — Work out the Net Annual Value (NAV). Subtract municipal or property tax you actually paid. ₹12 lakh rent minus ₹50,000 property tax gives an NAV of ₹11.5 lakh.
Step 3 — Apply the 30% standard deduction under Section 24(a). Deduct 30% of NAV automatically, no receipts needed. 30% of ₹11.5 lakh is ₹3.45 lakh, leaving ₹8.05 lakh.
Step 4 — Deduct home loan interest under Section 24(b). If you have a loan on the rental property, deduct the interest portion, not the principal. For a let-out property the interest itself has no statutory cap, though how much of any resulting loss you can set off differs by regime (more on that below).
Step 5 — Arrive at taxable rental income. This net figure joins your salary, interest, and any other income to form total taxable income.
Step 6 — Apply the new regime slabs. Total taxable income is taxed at progressive rates. Rental income carries no special rate of its own.
Step 7 — Apply the Section 87A rebate, if eligible. If total taxable income is ₹12 lakh or less under the new regime, a rebate of up to ₹60,000 brings tax down to nil.
Step 8 — Add surcharge, if total income exceeds ₹50 lakh. Surcharge sits on top of income tax for higher earners.
Step 9 — Add the 4% Health and Education Cess. This applies to every taxpayer, calculated on income tax plus surcharge.
This is the single biggest tax benefit available to rental property owners. It's automatic, needs zero documentation, and applies to every residential landlord.
What it is: a fixed 30% of your Net Annual Value, covering notional costs for maintenance, repairs, and upkeep.
Why it matters: without it you'd need actual expense receipts. The 30% deduction is automatic and carries no audit risk.
Available in the new regime? Yes — unlike most deductions such as 80C or 80D, Section 24(a) works in both regimes.
Calculated on: NAV, which is gross rent minus municipal taxes actually paid.
Documentation needed: none.
Can you claim more? Yes, if your actual documented expenses exceed 30% — but then you need proof.
Commercial properties: different rules apply; this calculator covers residential property only.
Every deduction is calculated on NAV, not on your gross rent. Getting this one number right prevents most calculation errors.
Gross rent received: ₹12,00,000
Less municipal tax actually paid: ₹50,000
NAV: ₹11,50,000
30% standard deduction = 30% × ₹11,50,000 = ₹3,45,000
Only municipal or property tax you physically paid reduces NAV. Vacancy periods and other running expenses don't reduce NAV directly — the 30% deduction is meant to absorb those.
If you have a home loan on your rental property, the interest portion of your EMI is deductible in addition to the 30% standard deduction — both apply together.
Key rule: only interest is deductible, not principal. Your EMI is interest plus principal — only the interest part qualifies under Section 24(b).
| Property Type | Old Regime | New Regime |
|---|---|---|
| Let-out (rental) property | Full interest deductible; loss set-off against other income capped at ₹2 lakh/year, balance carried forward 8 years | Full interest deductible, but only up to the rental income itself — no loss set-off against other income, and no carry-forward |
| Self-occupied property | Capped at ₹2 lakh/year | Not allowed |
Common misconception: there is no flat ₹2 lakh statutory cap on the interest itself for a let-out property in either regime. The ₹2 lakh figure only limits how much of a resulting loss you can set off against other income, and that limit applies under the old regime. Under the new regime, the deduction can't create a loss at all — it's capped at your rental income for that property.
Ask your bank for an annual interest certificate; banks issue this free of charge.
Check your loan statement, which breaks each EMI into interest and principal.
View Form 26AS on the official Income Tax e-filing portal.
Your rental income is added to total income and taxed at these progressive rates under the new tax regime for FY 2025-26:
| Income Range | Tax Rate |
|---|---|
| ₹0 – ₹4,00,000 | Nil |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Section 87A rebate, FY 2025-26: if your total taxable income is ₹12,00,000 or less under the new regime, a rebate of up to ₹60,000 brings your tax liability to zero. In practice, rental income that keeps your combined total at or below ₹12 lakh means no tax payable at all. Check your exact figure with our Section 87A Marginal Relief Calculator.
₹0 to ₹4 lakh at nil: ₹0
₹4 to ₹8 lakh at 5%: ₹20,000
₹8 to ₹12 lakh at 10%: ₹40,000
₹12 to ₹14 lakh at 15%: ₹30,000
Base tax: ₹90,000 (plus 4% cess of ₹3,600, for a total of ₹93,600 — no rebate applies above ₹12 lakh)
Surcharge and cess sit on top of income tax once income crosses certain thresholds. The 4% cess applies to every taxpayer without exception.
| Total Income Range | Surcharge Rate |
|---|---|
| Up to ₹50 lakh | Nil |
| ₹50 lakh – ₹1 crore | 10% on income tax |
| ₹1 crore – ₹2 crore | 15% on income tax |
| ₹2 crore – ₹5 crore | 25% on income tax |
| Above ₹5 crore | 37% on income tax |
Income tax on ₹60,00,000 at the slab rates above: ₹13,80,000
Surcharge at 10% (income between ₹50 lakh and ₹1 crore): ₹1,38,000
Cess at 4% on (₹13,80,000 + ₹1,38,000): ₹60,720
Total tax: ₹15,78,720
Once rent crosses a set threshold, the tenant is legally required to deduct TDS before paying you. Two separate sections apply depending on who the tenant is.
| Section | Applies To | Threshold | TDS Rate |
|---|---|---|---|
| 194I | Companies, firms, tax-audit entities | Rent above ₹50,000/month (₹6,00,000/year, revised by the Finance Act 2025) | 10% on land/building/furniture; 2% on machinery |
| 194IB | Individual or HUF tenants not subject to tax audit | Monthly rent above ₹50,000 | 2%, filed via Form 26QC, no TAN needed |
Change from Budget 2025: the old Section 194I threshold was ₹2,40,000/year (₹20,000/month). From 1 April 2025, this rose to ₹6,00,000/year (₹50,000/month), which takes many small landlords out of TDS compliance altogether.
Monthly rent ₹60,000, annual rent ₹7,20,000
TDS at 2%: ₹14,400
You receive: ₹7,05,600
TDS credit in your tax account: ₹14,400, adjustable when you file your ITR
No PAN means 20% TDS. If you don't share your PAN with the tenant, they're required to deduct at 20% under Section 206AA. Always hand over your PAN to any tenant paying rent above the threshold.
Verify every TDS credit in Form 26AS on the official Income Tax portal before filing your ITR.
For most landlords, the new regime works out better, but the gap is narrower than it looks once you factor in home loan interest. The 30% standard deduction under Section 24(a) is available in both regimes. The real difference is in how Section 24(b) interest losses are treated.
Lower slab rates, 0% to 30%
Section 24(a) 30% deduction available
Section 87A rebate up to ₹60,000
Standard salary deduction of ₹75,000
Section 24(b) interest on let-out property is capped at that property's rental income; no loss set-off against other income
No 80C or 80D deductions
Usually better if you have little or no home loan interest on the property
Section 24(a) 30% deduction available
Section 24(b) loss set-off against other income, capped at ₹2 lakh/year, balance carried forward 8 years
80C and 80D deductions available
Higher slab rates, 5% to 30%
Section 87A rebate capped at ₹12,500
No standard deduction add-on beyond the usual ₹50,000
Often works out better if loan interest creates a meaningful loss you want to offset against salary
Run the exact numbers for your situation with our Old vs New Tax Regime Calculator.
Any rental income must be reported in your ITR. Which form you file depends on your other income sources. File on the official Income Tax e-filing portal.
| ITR Form | When to Use |
|---|---|
| ITR-1 | Salaried, with rental income from exactly one house property, no capital gains, no business income |
| ITR-2 | Capital gains, multiple properties, or other complex income sources |
| ITR-4 | Self-employed individuals with business income alongside rental income |
31 July of the assessment year. Filing late attracts interest under Section 234A and a late fee under Section 234F, so it's worth not leaving it to the final congested week.
Bank statements or rent receipts showing rent received
Municipal or property tax receipts
Annual interest certificate from your bank, for Section 24(b)
Form 16A or Form 26QC, if TDS was deducted
Bank account details for a refund, if applicable
These are the errors that trip up landlords most often. Some of them can trigger a notice from the Income Tax Department.
Even if your tenant is a family member, rental income must be declared. The department cross-checks rent agreements, TDS filings, and property registrations, so an omission rarely stays hidden.
The standard deduction applies to Net Annual Value, which is gross rent minus municipal taxes paid. Using gross rent inflates the deduction and gets disallowed under scrutiny.
The ₹2 lakh figure caps the self-occupied property deduction and the old-regime loss set-off — not the interest itself on a let-out property. Many landlords under-claim because they assume the cap applies everywhere.
Section 24(b) allows only the interest portion of your EMI. Principal repayment isn't a deduction here, and first-time landlords who get this wrong often face a tax demand later.
Two rental properties or any capital gains means ITR-1 no longer applies. The wrong form makes your return defective and can hold up refunds.
If you pay your landlord more than ₹50,000 a month, you're required to deduct TDS at 2% and file Form 26QC. Skipping this attracts 1% interest per month plus a possible penalty under Section 271C.
Under the new regime, total taxable income up to ₹12 lakh means zero tax once the ₹60,000 rebate applies. Many landlords calculate from the slabs and stop there, forgetting the rebate, and end up overpaying.
You can only reduce NAV for municipal taxes you actually paid, and only with proof. No receipt means no deduction, even if you genuinely paid it.
This calculator processes everything in your browser. Your financial information never leaves your device.
Client-side processing: all calculations run locally in your browser
No data storage: we don't save or collect any of your financial information
No logging: your rental income data isn't tracked
No transmission: your property and income details never reach our servers
No login required: use it anonymously, no account needed
HTTPS secure: the site uses encryption throughout
Since all processing happens on your device, your rental income and property details never leave your computer. No third party has access to your financial information.
This calculator is for educational purposes. It's meant to help you understand how rental income taxation works, not to replace professional advice. For complex situations, consult a qualified Chartered Accountant.
Results are based on FY 2025-26 rules. Your actual liability varies with individual circumstances, state-specific taxes, municipal levies, actual expenses claimed, and other factors.
Your real liability depends on regime choice, whether you claim the 30% deduction or actual expenses, your total income from all sources, state and municipal property taxes, and any changes to tax law since this page was last updated.
We keep rates and rules updated, but can't guarantee complete accuracy. Tax law changes. Always verify with official sources or your tax advisor before making a financial decision.
We aren't responsible for errors, omissions, losses, or damages arising from use of this calculator. Use it at your own risk and verify critical figures with a professional.
For ITR filing, property tax planning, loan interest claims, or loss carry-forward, consult a qualified CA, a tax consultant, or the Income Tax Department directly.
A few other tools that pair well with rental income planning:
Salary Tax Calculator — combine salary and rental income into one total tax figure
Old vs New Tax Regime Calculator — compare your total tax outcome across both regimes
Section 87A Marginal Relief Calculator — check your exact rebate near the ₹12 lakh threshold
Capital Gains Tax Calculator — for when you sell the property rather than rent it
Section 80GG Rent Deduction Calculator — if you pay rent yourself and don't receive HRA
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
