How to Use the Rental Income Tax Calculator
Rental income in the US is reported on Schedule E and combined with your other taxable income — there is no separate flat-rate option like some countries offer. That means rental income is taxed at whatever your marginal federal tax bracket happens to be once it's added to your other earnings.
This calculator estimates the extra federal tax you'll owe because of your rental income by comparing your tax with and without the net rental amount (gross rental income minus expenses) added to your taxable income.
If your rental expenses exceed your rental income, you may have a deductible loss — active participants can generally offset up to $25,000 of other income per year, subject to phase-out at higher incomes.
Frequently Asked Questions
No. The US has no separate flat-rate option for rental income — it's reported on Schedule E and simply added to your other taxable income, taxed at your regular marginal tax rate.
A rental loss can offset up to $25,000 of other income per year for active participants, though this allowance phases out at higher incomes. Losses beyond that limit are generally carried forward to future years.