Rental income tax calculator

Rent received in the yearRent actually received for the year, for example ₹30,000 a month is ₹3.6 lakh.INR

Municipal property tax paidOnly the property tax you paid during the year counts.INR

Home loan interest on this propertyInterest only, not the principal. It is deducted in full for a let-out house.INR

Other taxable income for the yearSalary after the standard deduction, business profit, interest. Sets your slab.INR

Tax regimeThe new regime does not let a loss from the house lower your other income.

Your ageMatters only in the old regime, where the tax-free limit rises at 60 and 80.

Tax on your rental income

₹14,820

Effective rate 4.1 %

Net annual value (rent minus municipal tax)₹3,50,000
Standard deduction for repairs30 %-₹1,05,000
Home loan interest-₹1,50,000
Income from house property₹95,000
Extra income tax at slab rates, top slab15 %−₹14,250
Extra Health and Education Cess4 %−₹570
Rent left after municipal tax, interest and tax₹1,85,180

An estimate under the rules for the chosen year, for typical cases. It is not tax advice: check the result with the tax office or an adviser before you file.

How it is calculated

Start with the rent you received and subtract municipal property tax you paid. That gives the net annual value. You then deduct a flat 30 % for repairs and upkeep, whatever you really spent.

Interest on a home loan for the let-out property is deducted in full. If the result is positive, it is added to your other income and taxed at your slab rate, plus 4 % cess.

If interest makes the result negative, the old regime lets you set up to ₹2 lakh of the loss against your salary or other income and carry the rest forward for 8 years. The new regime does not allow that set-off.

You are a resident individual and own the whole property. For joint owners, enter your share.
Rent is what you actually received in the year. The fair rent or municipal valuation test for the annual value is not applied.
Municipal tax counts only if you paid it during the year.
Home loan interest is for the let-out property. Principal repayment (80C) and pre-construction interest are not included.
Other income is your taxable income after its own deductions, for example salary minus the standard deduction.
Tax year 2026-27 uses the same rates and rules as 2025-26: Budget 2026-27 left them unchanged.
The tax shown is the extra tax the rent adds on top of the tax on your other income.

Questions

Can I deduct repairs and maintenance from rent?

Not separately. The 30 % standard deduction replaces all repair and upkeep costs, even if you spent more or less.

Can I claim home loan interest on a rented house in the new regime?

Yes, against the rent from that property. But if that creates a loss, you cannot set it against your salary or other income under the new regime.

Is rent below ₹12 lakh tax free?

Under the new regime, if your income taxed at slab rates (salary, rent, interest, after deductions) is up to ₹12 lakh, the rebate brings your tax to zero. Rent counts towards that limit; capital gains do not.

Does my tenant deduct TDS?

Individual tenants paying more than ₹50,000 a month deduct TDS of 2 %. You claim it against your final tax.

Sources

Now keep it on track Set the result as a budget in Spendee and see each month how much is left.

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