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Rental Income Tax Calculator

The tax your rent adds, in both regimes.

Your inputs

Rent and income
this year
salary etc., gross
Tax regime
Salaried
Adjust old-regime deductions
e.g. section 123 (80C)

Your result

Indicative
Tax on your rent
₹ 41,860

In the new regime; 11.6% of the rent.

₹ 2,45,000
Taxable rent income
₹ 76,440
Tax on rent, old regime
₹ 41,860
Tax on rent, new regime
₹ 3,08,140
Rent left after tax
Tax year 2026-27.

Quick answer: Rent less property tax paid, minus a flat 30% and any home loan interest, is taxed at your slab plus 4% cess. On ₹ 30,000 a month with no loan and a ₹ 15 lakh salary, the rent adds ₹ 41,860 of tax in the new regime and ₹ 76,440 in the old for tax year 2026-27. In the old regime, a loss of up to ₹ 2 lakh can be set off against other income.

How your rent is taxed

Updates as you type
Income from house property, tax year 2026-27, with 4% cess.
StepAmount
Rent for the year₹ 3,60,000
Less property tax paid₹ 10,000
Annual value₹ 3,50,000
Less 30% standard deduction₹ 1,05,000
Less home loan interest₹ 0
Income from house property₹ 2,45,000
Loss set off against other income (old regime)₹ 0
Loss carried forward (old regime)₹ 0
Tax on rent, old regime₹ 76,440
Tax on rent, new regime₹ 41,860

How do you use the rental income tax calculator?

  1. Enter the rent you receive in the year, the property tax you paid on the home, and any home loan interest for the year.
  2. Enter your other income before deductions, say if it is salary, and pick your tax regime. Old-regime deductions such as section 123 (the old 80C) are under “Adjust old-regime deductions”.
  3. Read the extra tax your rent adds, in both regimes, and how much rent is left after tax.

How is rental income taxed in India?

Rent from a home you let out is taxed as income from house property under section 22 of the Income-tax Act, 2025, in force from 1 April 2026. Start with the rent, take off the property tax you actually paid that year, and you get the annual value. You then deduct a flat 30% for repairs and upkeep, whatever you really spent, and the interest on any home loan for that property.

What is left is added to your other income and taxed at your slab rate, plus 4% cess. If the interest is more than the rent after the 30% deduction, you have a loss. The old regime lets up to ₹ 2 lakh of it reduce your other income and carries the rest forward for 8 years. The new regime allows interest only up to the rent income and does not set off a loss.

How the tax is worked out

1
Annual valueRent − property tax paid
2
House property incomeAnnual value × 70% − home loan interest
3
Tax on rentTax on (other income + house property income) − tax on other income
4
LossOld regime: set off up to ₹ 2 lakh, rest carried forward; new regime: not set off

Worked example: ₹ 30,000 a month, no loan, ₹ 15 lakh salary

Rent of ₹ 3,60,000 less ₹ 10,000 of property tax gives an annual value of ₹ 3,50,000. After the 30% deduction, ₹ 2,45,000 is taxable. Under the new regime this adds ₹ 41,860 to your tax, 11.6% of the rent. With ₹ 1.5 lakh of other deductions, the old regime adds ₹ 76,440.

Worked example: the same flat with ₹ 6 lakh of interest

The house property income is − ₹ 3,55,000, a loss. The old regime sets ₹ 2 lakh of it off against your salary, saving ₹ 62,400 of tax, and carries ₹ 1,55,000 forward. The new regime charges no tax on the rent but does not set off the loss.

Tax on ₹ 3.6 lakh of rent at different incomes

Salaried, no home loan, ₹ 10,000 property tax, ₹ 1.5 lakh old-regime deductions. Tax year 2026-27.
Other incomeOld regimeNew regime
₹ 8,00,000₹ 50,960₹ 0
₹ 12,00,000₹ 76,440₹ 88,920
₹ 15,00,000₹ 76,440₹ 41,860
₹ 25,00,000₹ 76,440₹ 76,440

What should you keep in mind?

Frequently asked questions

Rent less property tax, minus a flat 30% and any home loan interest, is added to your income and taxed at your slab. On ₹ 30,000 a month with no loan and a ₹ 15 lakh salary, the rent adds ₹ 41,860 of tax in the new regime and ₹ 76,440 in the old.

After taking off property tax paid, you deduct a flat 30% of the annual value for repairs and upkeep. You get it whatever you actually spend, and you cannot claim repairs or maintenance separately on top of it. It applies in both tax regimes.

Yes. Interest on a loan for a let-out home is deducted in full from its rent income. In the old regime, a resulting loss is set off against other income up to ₹ 2 lakh a year, with the rest carried forward for 8 years. Under the new regime interest is allowed only up to the rent income.

The slabs differ and a house-property loss cannot be set off against your other income. The 30% deduction and interest up to the rent income are allowed in both regimes. The calculator shows both, so you can see which costs less on your figures.

Possibly not. The new regime charges no tax if your total income, including the rent after deductions, stays within ₹ 12 lakh, thanks to the rebate. Crossing that line by a little can cost more than you expect, so check your total. Please verify with your Chartered Accountant before acting.

Property tax you actually paid in the year comes off the rent first, before the 30% deduction. Tax that is due but unpaid does not count. Keep the Bengaluru property tax receipt for the year with your rent records, as you may need it if your return is questioned.

Sources

Indicative only. Verify your tax position with your Chartered Accountant before acting.

Buying a home in Bengaluru? Talk to an acre&key advisor.

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