Estimate federal tax on your net rental income. Rental profit is taxed at your bracket — with no Social Security or Medicare tax.
Net rental income (rent received minus deductible expenses and depreciation) is added to your ordinary income and taxed at your regular bracket (10%-37%). Unlike wages, rental income is NOT subject to Social Security/Medicare (FICA) tax. You report it on Schedule E.
Mortgage interest, property tax, insurance, repairs, maintenance, property management fees, HOA dues, utilities you pay, travel to the property, and depreciation (residential property depreciates over 27.5 years). These deductions often reduce taxable rental income to near zero or a paper loss.
Usually no. Ordinary rental income is passive and not subject to the 15.3% self-employment tax — a major advantage over active business income. Short-term rentals (like Airbnb) with substantial services can be an exception.
If your net rental profit is $20,000 and you're in the 22% bracket, you owe about $4,400 in federal income tax (no FICA). Depreciation and expenses typically lower the taxable amount well below gross rent.
Estimates for 2026 using IRS supplemental wage rules and FICA. Withholding shown is not final tax — actual liability is settled at filing. Not tax advice.
Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.
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