Free FY 2025-26 rental income tax calculator with 30% deduction, home loan interest, and TDS rules — accurate, private, no login.
Calculate exact tax on your rental income for FY 2025-26 — 30% standard deduction, Section 24(b) home loan interest, Section 87A rebate, surcharge, cess, and TDS under 194I/194IB, all in one free tool.
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 rent out a property in India, this rental income tax calculator works out exactly what you owe under FY 2025-26 rules. It applies the 30% standard deduction automatically, factors in property tax and home loan interest, and breaks down your taxable rental income line by line. Nothing you type gets sent anywhere; the whole thing runs in your browser. If you also want to see how this compares against the old tax regime, the old vs new tax regime calculator runs both side by side.
Covers: New regime slabs for 2025-26, Section 24(a) and 24(b), the Section 87A rebate, and TDS under Sections 194I and 194IB.
Here's how the tax actually plays out at a few different rent levels under FY 2025-26 rules. Watch what happens below ₹12 lakh of taxable income: the Section 87A rebate wipes the tax out completely.
Gross rent ₹10,00,000 Property tax paid: ₹0. Taxable rental income: ₹7,00,000. Tax before rebate: ₹15,000. Section 87A rebate: −₹15,000. Total tax payable: ₹0.
Gross rent ₹12,00,000 Property tax paid: ₹0. Taxable rental income: ₹8,40,000. Tax before rebate: ₹24,000. Section 87A rebate: −₹24,000. Total tax payable: ₹0.
Gross rent ₹15,00,000 Property tax paid: ₹1,50,000. Taxable rental income: ₹9,45,000. Tax before rebate: ₹32,250. Section 87A rebate: −₹32,250. Total tax payable: ₹0.
Gross rent ₹20,00,000 Property tax paid: ₹2,00,000. Taxable rental income: ₹12,60,000. Tax above ₹12L (no rebate applies here): ₹69,000. Health and Education Cess (4%): ₹2,760. Total tax payable: ₹71,760.
These examples assume rental income is your only income and that you've picked the new regime. Once you add salary or interest on top, your combined total is what decides whether the ₹12 lakh rebate still applies, so plug your full income picture into the calculator above for an accurate figure. If you're weighing salary against rent, the salary tax calculator will give you the combined number.
It does:
It doesn't:
Use it to understand your rental tax and test how different deductions move the number before you sit down with your CA.
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 tax out entirely below ₹12 lakh. This tool is built specifically around "Income from House Property" rules rather than being a repurposed generic income calculator, so every field maps to an actual deduction in the Income Tax Act.
A result in under a minute. Enter your annual rent, property tax paid, and loan interest. The calculator handles NAV, Section 24 deductions, slabs, rebate, and cess for you.
Built on FY 2025-26 rules. That means 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.
Private by design. No login, no server calls. Your figures stay on your device.
Built for Indian landlords. It's designed around salaried employees and freelancers with one residential rental property, not adapted from some global template.
Rental income is money you earn letting out a property you own, whether that's an apartment, a house, or any other real estate leased to a tenant. The Income Tax Act taxes this under the head "Income from House Property."
The principle is simple: your rental income gets added to your total income (salary, interest, whatever else you earn), and the combined figure is taxed at progressive slab rates. There's no special flat rate just for rent; it's treated as part of your regular income.
When do you need to file an ITR? Once your gross total income crosses ₹4,00,000 under the new regime, or ₹2,50,000 under the old regime. There's no separate exemption for rental income specifically. It has to be disclosed once you cross the basic exemption limit, whatever the amount.
This is the single biggest tax benefit available to rental property owners, and it's automatic. No documentation required, and every residential landlord gets it.
It's a fixed 30% of your Net Annual Value, meant to cover notional maintenance, repair, and upkeep costs. Without it, you'd need actual expense receipts for everything, so the flat 30% saves you the paperwork and carries no audit risk.
Every deduction is calculated on NAV, not gross rent. Get this number right and most calculation errors disappear on their own.
NAV = Gross Rent Received − Municipal Taxes (Actually Paid)
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 costs don't reduce NAV directly; the 30% deduction is meant to absorb those instead.
If you've got a home loan on your rental property, the interest portion of your EMI is deductible on top of the 30% standard deduction. Both apply together. Only interest is deductible, never principal — your EMI is a mix of the two, and only the interest slice 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, no carry-forward |
| Self-occupied property | Capped at ₹2 lakh/year | Not allowed |
Common misconception: there's no flat ₹2 lakh statutory cap on the interest itself for a let-out property in either regime. That ₹2 lakh figure only limits how much of a resulting loss you can set off against other income, and it applies under the old regime. Under the new regime, the deduction simply can't create a loss at all; it's capped at your rental income from that property.
To find your interest amount: ask your bank for an annual interest certificate (they issue this free), check your loan statement (it breaks each EMI into interest and principal), or view Form 26AS on the official Income Tax e-filing portal.
Your rental income gets added to total income and taxed at these progressive rates:
| 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 zeroes out your tax liability. In practice, this means rental income that keeps your combined total at or below ₹12 lakh owes nothing at all. Check the exact figure with the Section 87A marginal relief calculator.
Example: taxable income of ₹14 lakh (above the rebate threshold) ₹0–₹4 lakh at nil: ₹0. ₹4–₹8 lakh at 5%: ₹20,000. ₹8–₹12 lakh at 10%: ₹40,000. ₹12–₹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 everyone, no exceptions.
| 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 |
Example: taxable income of ₹60 lakh Income tax at slab rates: ₹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. Which section applies depends on who your 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 that rose to ₹6,00,000/year (₹50,000/month), which takes a lot of small landlords out of TDS compliance altogether.
Example: Section 194IB, individual tenant 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. Hand over your PAN to any tenant paying rent above the threshold; it's a small thing that saves a lot of hassle later.
Verify every TDS credit in Form 26AS on the official Income Tax portal before you file.
For most landlords the new regime works out better, but the gap is narrower than it looks once home loan interest enters the picture. The 30% standard deduction under Section 24(a) is available in both regimes; the real difference is how Section 24(b) interest losses get treated.
New tax regime (default):
Old tax regime:
Run the exact numbers for your own situation with the old vs new regime comparison tool.
Any rental income has to be reported in your ITR. Which form you use depends on your other income sources. File through the official Income Tax e-filing portal.
| ITR Form | When to Use |
|---|---|
| ITR-1 | Salaried, 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 |
Filing deadline: 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 for the last congested week.
Documents worth keeping ready: bank statements or rent receipts showing rent received, municipal or property tax receipts, the annual interest certificate from your bank for Section 24(b), Form 16A or Form 26QC if TDS was deducted, and your bank account details in case a refund is due.
These are the errors that trip up landlords most often, and a few of them can trigger a notice from the Income Tax Department.
This calculator processes everything in your browser. Your financial information never leaves your device.
Since everything happens on your device, your rental income and property details never leave your computer, and no third party gets access to your financial information.
This calculator is built for educational purposes, to help you understand how rental income taxation works — it isn't a substitute for professional advice. For anything beyond a straightforward, single-property situation, talk to a qualified Chartered Accountant.
Results are estimates based on FY 2025-26 rules, and your actual liability will vary with your regime choice, whether you claim the 30% deduction or actual documented expenses, your total income from all sources, state and municipal property taxes, and any changes to tax law after this page was last updated.
We keep the rates and rules on this page current, but tax law changes, and we can't guarantee the figures here will always reflect the latest position. Always cross-check with official sources or your tax advisor before filing or making a financial decision. We also aren't responsible for errors, omissions, or losses arising from use of this calculator — use it as a planning aid and verify the final numbers 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.
Important: this calculator estimates tax based on typical scenarios. Before filing your ITR or making a tax decision, verify the figures with a qualified professional who can review your complete financial situation.
Yes, Section 24(a) is one of the few deductions available under both the old and new regimes, and it's automatic — no receipts needed, just 30% of your Net Annual Value. If your actual documented repair and maintenance expenses exceed 30%, you can claim the higher figure instead, but you'll need bills, receipts, or insurance statements to back it up. It's one or the other, not both, so go with whichever is higher and keep every receipt if you go the actual-expenses route.
No. NAV is gross rent minus municipal taxes actually paid. Collect ₹12 lakh in rent but pay ₹50,000 in property tax, and your NAV is ₹11,50,000. Every deduction is calculated on NAV, not gross rent.
Yes, you can deduct the full interest portion of your EMI under Section 24(b), and there's no statutory cap on the interest itself for a let-out property. The ₹2 lakh figure applies elsewhere: under the old regime it caps how much of a resulting loss you can set off against other income (with the rest carried forward 8 years); under the new regime there's no loss set-off at all, so the deduction is effectively limited to that property's rental income. Only interest qualifies, never principal, so get the breakdown from your annual loan statement.
For a rental property loan, interest is claimed against that property's rental income under Section 24(b). For a self-occupied property loan, it's a separate deduction capped at ₹2 lakh under the old regime, and not allowed at all under the new regime. Link each interest claim to the correct property in your ITR.
They're entirely separate. Rental income is annual income from rent, taxed under "Income from House Property." Capital gains is the profit on sale, taxed separately with different rates and holding-period rules. Use the capital gains tax calculator for sale scenarios.
ITR-1 works if you're salaried with rental income from exactly one house property and no capital gains. ITR-2 covers multiple properties or capital gains. ITR-4 is for self-employed individuals with rental income alongside business income. When in doubt, check the official IT portal or ask your CA.
TDS on rent is governed by Section 194I for companies and audited entities (10% for land or building, threshold ₹6,00,000/year) and Section 194IB for individual tenants (2%, threshold ₹50,000/month). The deducted amount gets credited to your income tax account and adjusted against your final tax when you file. You get a refund if TDS exceeds your tax, or pay the balance if it's less.
Under the old regime, yes. A rental loss can be set off against other income such as salary or interest in the same year, up to ₹2 lakh, with any unused balance carried forward for up to 8 years against future rental income. Under the new regime, this set-off and carry-forward isn't available; the Section 24(b) deduction is capped at that property's own rental income.
Surcharge applies once your total income, including rental income, exceeds ₹50 lakh. At ₹75 lakh, a 10% surcharge sits on top of your income tax, and the rate steps up further at ₹1 crore, ₹2 crore, and ₹5 crore. The 4% Health and Education Cess then applies on the combined income tax plus surcharge.
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Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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