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Landlord Rental Tax Calculator

2025/26
Rental Property Details
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Interest deductibility phase-in: 80% from Apr 2024, 100% from Apr 2025

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Your non-rental income affects marginal tax rate on rental

Rental Tax Summary

After-Tax Rental Income

$6,340.00

Tax on Rental

$2,760.00

Marginal Rate

33.0%

Effective Rental Rate

9.2%

Income Breakdown
After-Tax Rental(21%)
Tax on Rental(9%)
Deductible Interest(40%)
Other Expenses(30%)
Rental P&L
Gross Rental Income$30,000.00
Deductible Interest-$12,000.00
Other Deductions-$8,900.00
Total Expenses-$20,900.00
Net Rental Income$9,100.00
How is this Calculated?

Understanding rental property tax in New Zealand

How rental income is taxed

Rental income is added to your other income and taxed at your marginal rate. Deductible expenses reduce your net rental income. The calculator works out additional tax by comparing your tax with and without rental income.

Interest deductibility changes

The Government has been phasing back in interest deductibility for residential rental properties. From 1 April 2024, 80% of interest is deductible, rising to 100% from 1 April 2025. This applies to properties acquired on or after 27 March 2021.

Allowable deductions

Common deductions include mortgage interest (subject to limits), council rates, insurance, property management fees, maintenance and repairs, body corporate fees, and other costs directly related to earning rental income.

IRD-Aligned: Uses 2025-26 individual tax rates. Interest deductibility rules may vary based on property acquisition date.

More Information

Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms

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