Rental income tax calculator with depreciation
Estimate taxable rental income after expenses, mortgage interest and straight-line depreciation, and the tax that might be due.
Rental Income Tax
Updates as you type
rough guide; your CPA has the final word
How this is calculated. In plain words.
- 1
Annual depreciation is the building basis divided by the recovery period (27.5 years residential, 39 years commercial), prorated for months in service.
- 2
Taxable rental income is rent minus operating expenses, mortgage interest and depreciation.
- 3
Estimated tax is taxable income times your marginal rate. A loss shows as a negative number; loss limits may apply.
Tax rules change and depend on your situation (for example the mid-month convention, passive loss limits and recapture). Talk to a tax professional. This calculator gives an estimate for planning only. It is not financial, tax or legal advice.
What the tax estimate leaves out.
Why does depreciation lower my taxable rental income?
The building (not the land) is deducted over its recovery period, 27.5 years for residential and 39 years for commercial, even though you spend no cash on it each year. That deduction can turn a cash profit into a taxable loss.
Can I deduct a rental loss against my salary?
Sometimes, within passive loss limits that depend on your income and how involved you are. The calculator shows the loss but does not apply those limits; ask a tax professional.
What is not included here?
The mid-month convention, depreciation recapture when you sell, state taxes and any credits. The estimate uses one marginal rate for the whole amount.
Is the result advice?
No. It is an estimate for planning, using only the numbers you type. Nothing is saved or sent anywhere; the calculation runs in your browser.
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