Rental Property Tax Calculator
Estimate the federal income tax on your rental property income with this free calculator built for US landlords and real estate investors. It accounts for all major Schedule E deductions — mortgage interest, property taxes, insurance, repairs, management fees, and straight-line depreciation over 27.5 years on the building value. The tool also applies the $25,000 passive activity loss allowance with the $100,000–$150,000 MAGI phase-out, so you get a realistic view of your taxable rental income, your marginal rate impact, and your annual cash flow before taxes.
How This Calculation Works
Rental income is reported on Schedule E. We subtract all deductible operating expenses (mortgage interest, property taxes, insurance, repairs, management fees, and other costs) plus annual depreciation, calculated as the building value divided by 27.5 years (residential straight-line method). The result is your net rental income or loss. If it's a loss, the IRS passive activity rules cap the deductible amount at $25,000, phased out between $100,000 and $150,000 of MAGI. The taxable amount is then applied at your marginal federal bracket to estimate the additional tax (or savings). Cash flow is computed separately, ignoring depreciation since it's a non-cash deduction.