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Rental Income Tax Calculator

A landlord wondering how much IRS your rents pay? This calculator estimates the autonomous taxation of Category F income: it applies your contract’s rate to the net income (the rents you receive minus the expenses you can deduct) and shows what you keep.

IRS is charged on the net rent (rents received minus deductible expenses: IMI, condominium fees, maintenance works and insurance, among others). The autonomous rate depends on the purpose and length of the contract: 28% for non-residential and, for housing, from 25% down to 5% by term. Alternatively, you can opt for aggregation and pay the progressive IRS rates.

IRS due (per year)
€2,100.00
Net income (per year)
€6,300.00

How the tax is reached

Gross annual rent (rent × 12)€9,600.00
− Deductible expenses€1,200.00
Taxable income€8,400.00
IRS (25%)−€2,100.00
Net income (effective rate 21.88%)€6,300.00

Educational estimate, not tax or financial advice. It computes the autonomous taxation of rents (Category F) in mainland Portugal. It does not cover the aggregation option, the new moderate-rent regime (10%) still pending regulation, or non-residents.

Video: how to use the calculator

What rental income is taxed on

The tax is not charged on the gross rent but on the net income: the rents received during the year minus the expenses incurred to obtain them. Deductible items include IMI and the additional AIMI, condominium fees, conservation and maintenance works (with invoices), insurance and other property upkeep. Not deductible are mortgage interest, furniture, appliances and works that increase the property’s value. The calculator asks for the monthly rent (which it multiplies by 12) and the yearly total of deductible expenses.

The rate depends on the type and length of the contract

Rents have a special (autonomous) rate, not the progressive rates of employment income. For residential lettings, the longer the contract, the lower the rate: 25% up to 5 years, 15% from 5 to 10 years, 10% from 10 to 20 years and just 5% on contracts of 20 years or more. For non-residential lettings (shops, offices, garages), the rate is 28%. Pick your case in the selector and the calculator applies the correct rate.

The alternative: aggregation (englobamento)

You can choose not to use the autonomous rate and instead add the net rents to your other income (employment, pensions), paying the progressive IRS rates, which is called aggregation. It mainly pays off for people on low incomes or with large deductible expenses. This calculator estimates the autonomous taxation (the default, without aggregation). Rents are always declared in Anexo F of the IRS return.

Worked example

You let a flat for €800 a month (€9,600 a year) on a 3-year residential contract (25% rate). During the year you paid €1,200 of deductible expenses (IMI, condominium fees and insurance). The taxable income is €9,600 − €1,200 = €8,400, the IRS is €8,400 × 25% = €2,100 and you keep €6,300. The effective rate on the rent is about 21.9%. On a 5-to-10-year contract (15%), the IRS would fall to €1,260.

Frequently asked questions

How is tax on rental income calculated?
Add up the rents received in the year, deduct the eligible expenses (IMI, condominium fees, conservation, insurance) and apply your contract’s rate (from 28% to 5%) to that net income. IRS = (rents − expenses) × rate.
What is the rental income tax rate in 2026?
For residential lettings, the autonomous rate falls with the contract length: 25% up to 5 years, 15% from 5 to 10 years, 10% from 10 to 20 years and 5% from 20 years. For non-residential lettings it is 28%.
Which expenses can I deduct from rent?
You can deduct the expenses incurred to obtain the rent: IMI and AIMI, condominium fees, conservation and maintenance works (with invoices), insurance and other property costs. You cannot deduct mortgage interest, furniture or works that increase the property’s value.
Is it worth opting for aggregation of rents?
It can pay off if your total income is low or you have large deductible expenses, because the first progressive IRS rates may be below the autonomous rate. On medium or high incomes the autonomous rate is usually better. This calculator shows the autonomous taxation.
Where do I report rental income for IRS?
Rental income is reported in Anexo F of the Modelo 3 IRS return, stating the rents received, the deductible expenses and the contract details (including its length, which sets the rate).
Do I pay Social Security on rental income?
No. A private landlord’s rents are property income (Category F) and pay no Social Security contributions, only IRS. It is different for those who let property as a business activity (Category B).

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-08