Botanica Accounting  |  Free calculator  |  2026-27 rates

Rental property deductions calculator

Your figures

The property and your share

All amounts in $ for the whole property for the year. Change any figure and the page recalculates. Yellow boxes are waiting for an entry.

Income year
$
Before the agent's commission, which you enter as a cost below.
%
Follows the legal title, not who paid. Joint tenants usually own equal shares.
days
days
$
Salary and other income before the property. This sets your tax rate. Include the 2% Medicare levy
Bought as an established home after 9 May 2017
If yes, plant and equipment that was already there when you bought cannot be depreciated.
Your costs

List each cost and choose what it is

Enter the full cost for the whole property. Effective life and months used matter only for new assets and building work. The examples are there to show how each type is treated: change or remove them.

$
Loan establishment fee, lender's valuation and legal fees, mortgage insurance, mortgage registration.
years
days
Over 100, borrowing costs are spread over 5 years (1,826 days) or the loan term if shorter. 100 or less is claimed in full in the year.
Results

Your rental result

Your share of the rent, less your share of the deductions for this year. Capital costs are not deducted now: they go into the cost base for capital gains tax when you sell.

Your share by type ($)

Things to know

What changes for you

Detail

Each cost, by type

About this calculator

Purpose. To help you sort the costs of a residential rental property you own as an individual into what you can deduct this year, what is deducted over time, and what is capital, then estimate your net rental result and how it changes your tax.

Assumptions and why we chose them. You can change every assumption above that is not a statutory rate.

  • Resident tax rates, the low income tax offset and the 2% Medicare levy for the year you choose, as in force at . The tax effect is worked out on your whole income with and without the property, so a loss that crosses a tax bracket is handled correctly.
  • Costs are reduced by your ownership share and by the share of the time the property was rented or available for rent. Rent is reduced by your ownership share only, because it is what was actually received.
  • Building work you paid for (capital works) is deducted at 2.5% of its cost a year, for the months it was in use. New plant and equipment over 300 uses the diminishing value method, cost times 200% divided by the effective life, for the months held. Items of 300 or less are deducted in full.
  • Borrowing costs are spread over the shorter of 5 years and the loan term, by days, as if this year falls inside the spread period.
  • The example costs are typical items for a house renting at about 575 a week. They show one cost of each kind, not a forecast.

Limitations and their effect.

  • It does not decide whether a cost is a repair or capital: that depends on the facts and on the ATO's rules for repairs. A different call moves the cost between this year's deductions and the cost base.
  • It does not prepare a depreciation schedule. A quantity surveyor's schedule gives the correct capital works and plant figures, and may be higher or lower than the estimates here.
  • It does not cover property held by a trust, company or self managed super fund, commercial or overseas property, a rental property business, holiday homes with private use, foreign residents, or GST on new residential premises.
  • It does not work out capital gains tax on a sale, the Medicare levy surcharge or HELP repayments. Rental losses are added back for the surcharge and HELP, so those do not fall.
  • Interest on a loan used partly for private purposes needs to be split on the loan balance. This page applies one share to all the interest you enter.
  • Botanica Accounting does not provide credit assistance. Speak with a licensed lender or broker about finance.