Autumn Budget 2026: What the New 24%, 44% and 49% Rental Income Tax Rates Mean for Landlords
UK tax · England, Wales & Northern Ireland
Source checked: 1 November 2026

From 6 April 2027, individuals pay Income Tax on rental profits at 24% (basic), 44% (higher) and 49% (additional) in England, Wales and Northern Ireland, four percentage points above the 20%, 40% and 45% paid today. Mortgage interest is relieved as a tax credit at the property basic rate of 24%. Limited companies are not affected by these rates.

ACTION CHECKLIST
- Confirm whether you own rentals personally, jointly, in a trust or through a company.
- Ask your accountant to project your 2027–28 tax using the 24%, 44% and 49% rates.
- List each mortgage and its interest cost, and check the 24% finance-cost credit.
- Check whether your other income pushes rental profit into a higher band.
- Review cash flow and set aside more for the 31 January 2029 balancing payment and payments on account.
- Collect arrears early, because unpaid rent now weighs more heavily on margins.
- Plan any rent review through the proper Section 13 and Form 4A process.
- Get advice before incorporating, transferring ownership or selling.


Read the full guide: https://help4landlords.co.uk/guides/autumn-budget-2026-landlord-tax/

Official sources:
HMRC: Income Tax – changes to tax rates for property and savings income (Budget 2026): https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-and-savings-income/income-tax-changes-to-tax-rates-for-property-and-savings-income
HM Treasury: Budget 2026 – overview of tax legislation and rates: https://www.gov.uk/government/publications/budget-2026-overview-of-tax-legislation-and-rates-ootlar/budget-2026-overview-of-tax-legislation-and-rates-ootlar
HM Treasury: Budget 2026 document: https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html
HMRC: Changes to tax rates for property, savings and dividend income (Budget 2025): https://www.gov.uk/government/publications/changes-to-tax-rates-for-property-savings-and-dividend-income
HMRC: Making Tax Digital for Income Tax: https://www.gov.uk/government/collections/making-tax-digital-for-income-tax

General information, not tax advice. Verify current requirements before acting.