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📑 Rental Income Tax Calculator

Calculate Schedule E taxable rental income, federal and state tax, after-tax cash flow, and effective tax rate on your rental property.

📍 Property Address (optional)
InputsYour Numbers
Annual Rental Income
Annual Rental Income?
$
Other Rental Income?
$
Deductible Expenses
Mortgage Interest (annual)?
$
Property Taxes (annual)?
$
Insurance (annual)?
$
Repairs & Maintenance?
$
Depreciation (annual)?
$
Management Fees?
$
Other Expenses?
$
Tax Rates
Federal Tax Bracket %?
%
State Tax Rate %?
%
Pro Forma (Higher Repair Year)
Pro Forma Repairs?
$
As-Is AnalysisCurrent
Enter values to see results
Net Taxable Income
--
schedule E result
Total Federal Tax
--
at your bracket
After-Tax Cash Flow
--
pre-tax CF minus tax
Effective Tax Rate
--
tax / gross income
Schedule E Calculation
Gross Rental Income--
Mortgage Interest--
Property Taxes--
Insurance--
Repairs--
Depreciation--
Management + Other--
Total Deductions--
Net Taxable Income (Loss)--
Tax & Cash Flow
Federal Tax (bracket x net)--
State Tax--
Total Tax on Rental Income--
Pro FormaAfter Plan
Enter pro forma values
Pro Forma Net Income
--
higher repairs
Tax Reduction
--
from extra repairs
Repair Tax Deduction Rate
--
Net After-Tax Repair Cost
--
actual out-of-pocket
Pro Forma Tax Impact
Base Case Tax--
Pro Forma Tax--
Tax Savings from Higher Repairs--

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1
Enter Annual Rental Income
Total rent collected plus any other income (late fees, laundry). This is your Schedule E gross income.
2
Enter All Deductible Expenses
Mortgage interest, taxes, insurance, repairs, depreciation, management fees, and other expenses all go on Schedule E. Each reduces taxable rental income.
3
Enter Depreciation
Annual depreciation is one of the most valuable deductions: (purchase price - land value) / 27.5. Even with positive cash flow, depreciation often creates a paper loss.
4
Read Net Taxable Income
If depreciation creates a negative Schedule E result, you have a paper loss. Whether that loss is currently deductible depends on your AGI and passive loss rules.
5
Check After-Tax Cash Flow
Pre-tax cash flow minus the tax on net rental income = your true after-tax return. A property with a $500/mo pre-tax cash flow may only net $380/mo after tax.
6
Model Repair Impact
The pro forma shows how much higher repair expenses reduce your tax bill. Repairs are deductible in the year incurred; improvements must be capitalized and depreciated.

Rental income is taxed on Schedule E of your federal return. The key advantage over ordinary income: you can deduct mortgage interest, depreciation, repairs, insurance, management fees, and other operating expenses before calculating taxable income.


Depreciation is the cornerstone tax benefit. On a $250,000 depreciable basis (purchase minus land), you deduct $9,090/year. If your cash flow is $600/mo ($7,200/yr) and depreciation is $9,090, you have a $1,890 paper loss on Schedule E even though you collected cash.


Important distinctions: Repairs are fully deductible in the year incurred (fixing a broken faucet). Improvements must be capitalized and depreciated (replacing the entire plumbing system). The line can be subjective -- document your decisions.

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