The financial core
- Rent: annual rent grows at your rent growth rate; the vacancy/void percentage is deducted to give rent collected.
- Management is a percentage of rent collected. Running costs grow at your cost growth rate.
- Net operating income = rent collected − management − running costs. Net yield (cap rate) = year-1 NOI ÷ price.
- Mortgage: a monthly schedule, either interest-only or repayment/amortizing over the term, aggregated by year. Interest and principal are kept separate because tax treats them differently, but both are cash.
- Cash flow = NOI − interest − principal − the tax caused by the property.
- Tax caused by the property = your tax with the property − your tax without it, using your other income. This captures bands, allowances and thresholds that a flat rate misses.
- Sale at the end of the period at the projected price, less selling costs, the outstanding loan and tax on the sale.
- After-tax IRR is the discount rate that makes the cash you invest (deposit + purchase taxes + fees), each year's after-tax cash flow and the net sale proceeds sum to zero.
- Break-even rent and rate are found by bisection: the rent or mortgage rate at which year-1 after-tax cash flow is zero.
- Hold vs sell compares final wealth at the same horizon: selling today and investing the net proceeds at your after-tax alternative return, versus holding (each year's cash flow reinvested at the same return) and selling at the end. The break-even return is where the two are equal.
Accuracy checks
The engine is tested on three levels: golden tests that reproduce published figures from official sources (HMRC's Section 24 example, GOV.UK's SDLT, CGT and Child Benefit charge examples, IRS Publication 527's depreciation example, the Rev. Proc. 2025-32 tax tables, the §469 phase-out, the ATO resident rates and capital works example, and the worked example in section 26-155 of the Australian Act); unit tests for each formula; and regression scenarios that freeze the outputs of standard cases so no result changes without an explanation on the changes page. A build that fails any test is not published.
UK rules in use
| Year | Rule | Value | Status | Source |
|---|---|---|---|---|
| 2026-27 | personalAllowance | 12,570 | Confirmed | Income Tax rates and Personal Allowances Personal Allowance £12,570 |
| 2026-27 | paTaperThreshold | 100,000 | Confirmed | Income Tax rates and Personal Allowances PA reduced by £1 for every £2 of adjusted net income above £100,000 |
| 2026-27 | basicRateBand | 37,700 | Confirmed | Capital Gains Tax: rates basic rate band £37,700 (2026 to 2027); FA 2026 s.10 freezes it to 2030-31 |
| 2026-27 | higherRateLimit | 125,140 | Confirmed | Income Tax rates and Personal Allowances additional rate on taxable income over £125,140 |
| 2026-27 | mainRates | 20% / 40% / 45% | Confirmed | Income Tax rates and Personal Allowances basic 20%, higher 40%, additional 45% |
| 2026-27 | hicbcThreshold | 60,000 | Confirmed | High Income Child Benefit Charge 1% of Child Benefit per £200 of adjusted net income over £60,000 |
| 2026-27 | hicbcStep | 200 | Confirmed | High Income Child Benefit Charge 1% per £200 |
| 2026-27 | cgtRates | 18% / 24% | Confirmed | Capital Gains Tax: rates 18% within the basic band, 24% above (gains from 6 April 2026) |
| 2026-27 | cgtAnnualExempt | 3,000 | Confirmed | Capital Gains Tax: allowances Annual Exempt Amount £3,000 |
| 2026-27 | sdltBands | 0% to 125,000; 2% to 250,000; 5% to 925,000; 10% to 1,500,000; 12%+ | Confirmed | Stamp Duty Land Tax: residential property rates residential rates, England and Northern Ireland |
| 2026-27 | sdltAdditionalSurcharge | 5% | Confirmed | Stamp Duty Land Tax: residential property rates usually 5% on top if you will own more than one residential property |
| 2026-27 | sdltNonResidentSurcharge | 2% | Confirmed | Stamp Duty Land Tax: residential property rates 2% surcharge for non-UK residents |
| 2026-27 | propertyRates | 20% / 40% / 45% | Confirmed | Income Tax rates and Personal Allowances no separate property rates before 2027-28 (FA 2026 s.6(8)) |
| 2026-27 | financeCostReliefRate | 20% | Confirmed | ITTOIA 2005 s.274AA — Reduction for individuals: calculation s.274AA(5): relief at the basic rate (BR) for 2026-27 |
| 2027-28 | personalAllowance | 12,570 | Confirmed | Income Tax rates and Personal Allowances Personal Allowance £12,570 |
| 2027-28 | paTaperThreshold | 100,000 | Confirmed | Income Tax rates and Personal Allowances PA reduced by £1 for every £2 of adjusted net income above £100,000 |
| 2027-28 | basicRateBand | 37,700 | Confirmed | Capital Gains Tax: rates basic rate band £37,700 (2026 to 2027); FA 2026 s.10 freezes it to 2030-31 |
| 2027-28 | higherRateLimit | 125,140 | Confirmed | Income Tax rates and Personal Allowances additional rate on taxable income over £125,140 |
| 2027-28 | mainRates | 20% / 40% / 45% | Confirmed | Income Tax rates and Personal Allowances basic 20%, higher 40%, additional 45% |
| 2027-28 | hicbcThreshold | 60,000 | Confirmed | High Income Child Benefit Charge 1% of Child Benefit per £200 of adjusted net income over £60,000 |
| 2027-28 | hicbcStep | 200 | Confirmed | High Income Child Benefit Charge 1% per £200 |
| 2027-28 | cgtRates | 18% / 24% | Assumption Held at 2026-27 CGT rates. | Capital Gains Tax: rates rates for gains from 6 April 2026; no announced change for 2027-28 |
| 2027-28 | cgtAnnualExempt | 3,000 | Assumption Held at £3,000. | Capital Gains Tax: allowances £3,000; no announced change for 2027-28 |
| 2027-28 | sdltBands | 0% to 125,000; 2% to 250,000; 5% to 925,000; 10% to 1,500,000; 12%+ | Confirmed | Stamp Duty Land Tax: residential property rates residential rates, England and Northern Ireland |
| 2027-28 | sdltAdditionalSurcharge | 5% | Confirmed | Stamp Duty Land Tax: residential property rates usually 5% on top if you will own more than one residential property |
| 2027-28 | sdltNonResidentSurcharge | 2% | Confirmed | Stamp Duty Land Tax: residential property rates 2% surcharge for non-UK residents |
| 2027-28 | propertyRates | 22% / 42% / 47% | Confirmed | Finance Act 2026 s.7 — Property rates of income tax for tax year 2027-28 FA 2026 s.7: property basic 22%, higher 42%, additional 47% for 2027-28 |
| 2027-28 | financeCostReliefRate | 22% | Confirmed | Finance Act 2026 Sch. 1 para. 40 — finance cost relief at the property basic rate FA 2026 Sch. 1 para. 40: s.274AA(5) BR → PBR (property basic rate) from 2027-28 |
| 2028-29 | personalAllowance | 12,570 | Confirmed | Income Tax rates and Personal Allowances Personal Allowance £12,570 |
| 2028-29 | paTaperThreshold | 100,000 | Confirmed | Income Tax rates and Personal Allowances PA reduced by £1 for every £2 of adjusted net income above £100,000 |
| 2028-29 | basicRateBand | 37,700 | Confirmed | Capital Gains Tax: rates basic rate band £37,700 (2026 to 2027); FA 2026 s.10 freezes it to 2030-31 |
| 2028-29 | higherRateLimit | 125,140 | Confirmed | Income Tax rates and Personal Allowances additional rate on taxable income over £125,140 |
| 2028-29 | mainRates | 20% / 40% / 45% | Confirmed | Income Tax rates and Personal Allowances basic 20%, higher 40%, additional 45% |
| 2028-29 | hicbcThreshold | 60,000 | Confirmed | High Income Child Benefit Charge 1% of Child Benefit per £200 of adjusted net income over £60,000 |
| 2028-29 | hicbcStep | 200 | Confirmed | High Income Child Benefit Charge 1% per £200 |
| 2028-29 | cgtRates | 18% / 24% | Assumption Held at 2026-27 CGT rates. | Capital Gains Tax: rates held |
| 2028-29 | cgtAnnualExempt | 3,000 | Assumption Held at £3,000. | Capital Gains Tax: allowances held |
| 2028-29 | sdltBands | 0% to 125,000; 2% to 250,000; 5% to 925,000; 10% to 1,500,000; 12%+ | Confirmed | Stamp Duty Land Tax: residential property rates residential rates, England and Northern Ireland |
| 2028-29 | sdltAdditionalSurcharge | 5% | Confirmed | Stamp Duty Land Tax: residential property rates usually 5% on top if you will own more than one residential property |
| 2028-29 | sdltNonResidentSurcharge | 2% | Confirmed | Stamp Duty Land Tax: residential property rates 2% surcharge for non-UK residents |
| 2028-29 | propertyRates | 22% / 42% / 47% | Assumption Property rates held at the 2027-28 levels. | Finance Act 2026 s.7 — Property rates of income tax for tax year 2027-28 property rates are set annually by Parliament; only 2027-28 is enacted |
| 2028-29 | financeCostReliefRate | 22% | Assumption Finance cost relief held at 22%. | Finance Act 2026 Sch. 1 para. 40 — finance cost relief at the property basic rate relief at the property basic rate; held at 22% |
US rules in use
| Year | Rule | Value | Status | Source |
|---|---|---|---|---|
| 2026 | brackets | single: 10% to 12,400; 12% to 50,400; 22% to 105,700; 24% to 201,775; 32% to 256,225; 35% to 640,600; 37%+; mfj: 10% to 24,800; 12% to 100,800; 22% to 211,400; 24% to 403,550; 32% to 512,450; 35% to 768,700; 37%+ | Confirmed | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.01 Tables 1 (MFJ) and 3 (unmarried individuals) |
| 2026 | standardDeduction | single: 16,100; mfj: 32,200 | Confirmed | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.14 standard deduction |
| 2026 | ltcgThresholds | single: 49,450 / 545,500; mfj: 98,900 / 613,700 | Confirmed | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.03 maximum zero-rate and 15%-rate amounts |
| 2026 | ltcgRates | 0% / 15% / 20% | Confirmed | Topic no. 409, Capital gains and losses 0% / 15% / 20% |
| 2026 | unrecaptured1250MaxRate | 25% | Confirmed | Topic no. 409, Capital gains and losses unrecaptured section 1250 gain taxed at a maximum 25% rate |
| 2026 | residentialRecoveryYears | 27.5 | Confirmed | Publication 527, Residential Rental Property GDS 27.5-year residential rental property, straight line, mid-month convention (Table 2-2d) |
| 2026 | passiveAllowance | 25,000 | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(2): $25,000 offset for rental real estate with active participation |
| 2026 | passivePhaseOutStart | 100,000 | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(3)(A): reduced by 50% of AGI over $100,000 |
| 2026 | passivePhaseOutRate | 50% | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(3)(A): 50 percent |
| 2026 | niitRate | 3.8% | Confirmed | 26 U.S.C. §1411 — Net investment income tax §1411(a)(1): 3.8 percent |
| 2026 | niitThreshold | single: 200,000; mfj: 250,000 | Confirmed | 26 U.S.C. §1411 — Net investment income tax §1411(b): $250,000 joint, $200,000 other (not indexed) |
| 2027 | brackets | single: 10% to 12,400; 12% to 50,400; 22% to 105,700; 24% to 201,775; 32% to 256,225; 35% to 640,600; 37%+; mfj: 10% to 24,800; 12% to 100,800; 22% to 211,400; 24% to 403,550; 32% to 512,450; 35% to 768,700; 37%+ | Assumption 2027 inflation adjustments not yet published; 2026 amounts held (no indexation). | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.01 Tables 1 (MFJ) and 3 (unmarried individuals) |
| 2027 | standardDeduction | single: 16,100; mfj: 32,200 | Assumption 2027 inflation adjustments not yet published; 2026 amounts held (no indexation). | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.14 standard deduction |
| 2027 | ltcgThresholds | single: 49,450 / 545,500; mfj: 98,900 / 613,700 | Assumption 2027 inflation adjustments not yet published; 2026 amounts held (no indexation). | Rev. Proc. 2025-32 — 2026 inflation adjustments §4.03 maximum zero-rate and 15%-rate amounts |
| 2027 | ltcgRates | 0% / 15% / 20% | Confirmed | Topic no. 409, Capital gains and losses 0% / 15% / 20% |
| 2027 | unrecaptured1250MaxRate | 25% | Confirmed | Topic no. 409, Capital gains and losses unrecaptured section 1250 gain taxed at a maximum 25% rate |
| 2027 | residentialRecoveryYears | 27.5 | Confirmed | Publication 527, Residential Rental Property GDS 27.5-year residential rental property, straight line, mid-month convention (Table 2-2d) |
| 2027 | passiveAllowance | 25,000 | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(2): $25,000 offset for rental real estate with active participation |
| 2027 | passivePhaseOutStart | 100,000 | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(3)(A): reduced by 50% of AGI over $100,000 |
| 2027 | passivePhaseOutRate | 50% | Confirmed | 26 U.S.C. §469 — Passive activity losses §469(i)(3)(A): 50 percent |
| 2027 | niitRate | 3.8% | Confirmed | 26 U.S.C. §1411 — Net investment income tax §1411(a)(1): 3.8 percent |
| 2027 | niitThreshold | single: 200,000; mfj: 250,000 | Confirmed | 26 U.S.C. §1411 — Net investment income tax §1411(b): $250,000 joint, $200,000 other (not indexed) |
Australian rules in use
| Year | Rule | Value | Status | Source |
|---|---|---|---|---|
| 2026-27 | medicareLevy | 2% | Confirmed | Tax rates – Australian resident “The above rates do not include the Medicare levy of 2%.” |
| 2026-27 | capitalWorksRate | 2.5% | Confirmed | Work out your capital works deductions residential construction started after 15 September 1987: 2.5% a year for 40 years |
| 2026-27 | cgtDiscount | 50% | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) 50% discount: still applies to pre-1 July 2027 (deferred) gains and to new residential dwellings (s.115-102) |
| 2026-27 | cgtMinimumRate | 30% | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) Div 119: minimum 30% tax on residential/non-residential capital gains (not deferred gains, not new residential dwellings) |
| 2026-27 | negativeGearingCutoff | 2026-05-12T19:30+10:00 | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) s.26-155(2)(a): dwellings last acquired before 7.30 pm ACT legal time on 12 May 2026 are exempt; contract date counts (s.26-155(3)) |
| 2026-27 | newResidentialDwellingDefined | false | Not yet settled “New residential dwelling” depends on a ministerial instrument not yet made (Treasury Tranche 2). New-build results assume the property will qualify. | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) s.26-160(3)-(4): requirements to be determined by the Minister by legislative instrument |
| 2026-27 | brackets | 0% to 18,200; 15% to 45,000; 30% to 135,000; 37% to 190,000; 45%+ | Confirmed | Tax rates – Australian resident Resident tax rates 2026–27 |
| 2026-27 | negativeGearingQuarantine | false | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) Sch. 2 item 5: s.26-155 applies from the 2027-28 income year |
| 2026-27 | cgtReformActive | false | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) Sch. 1 Part 4: CGT changes apply to CGT events on or after 1 July 2027 |
| 2027-28 | medicareLevy | 2% | Confirmed | Tax rates – Australian resident “The above rates do not include the Medicare levy of 2%.” |
| 2027-28 | capitalWorksRate | 2.5% | Confirmed | Work out your capital works deductions residential construction started after 15 September 1987: 2.5% a year for 40 years |
| 2027-28 | cgtDiscount | 50% | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) 50% discount: still applies to pre-1 July 2027 (deferred) gains and to new residential dwellings (s.115-102) |
| 2027-28 | cgtMinimumRate | 30% | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) Div 119: minimum 30% tax on residential/non-residential capital gains (not deferred gains, not new residential dwellings) |
| 2027-28 | negativeGearingCutoff | 2026-05-12T19:30+10:00 | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) s.26-155(2)(a): dwellings last acquired before 7.30 pm ACT legal time on 12 May 2026 are exempt; contract date counts (s.26-155(3)) |
| 2027-28 | newResidentialDwellingDefined | false | Not yet settled “New residential dwelling” depends on a ministerial instrument not yet made (Treasury Tranche 2). New-build results assume the property will qualify. | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) s.26-160(3)-(4): requirements to be determined by the Minister by legislative instrument |
| 2027-28 | brackets | 0% to 18,200; 14% to 45,000; 30% to 135,000; 37% to 190,000; 45%+ | Announced / legislated (secondary source) The 14% rate for 2027-28 is legislated but the ATO rates page only lists years to 2026-27. | Tax rates – Australian resident 15% → 14% on $18,201–$45,000 from 2027-28 (legislated 2025; not yet on the ATO rates page) |
| 2027-28 | negativeGearingQuarantine | true | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) s.26-155 applies from 2027-28 to dwellings acquired after the cut-off (except new residential dwellings) |
| 2027-28 | cgtReformActive | true | Confirmed | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) deemed sale at market value just before 1 July 2027 (s.112-155); indexation + 30% minimum after |
Australian state stamp duty and land tax
Stamp duty uses each jurisdiction's general (investor) rates; land tax uses the rates for an individual owner, applied to your total holdings in that state (the ACT charges each rented property separately). The full tables are on each state page.
| State | Rule | Status | Source |
|---|---|---|---|
| NSW | duty | Confirmed | Revenue NSW: How to calculate transfer duty (2026/2027 rates) 2026/2027 rates (premium duty above $3,870,000 for residential property); thresholds CPI-indexed each 1 July; min $20 |
| NSW | landTax | Confirmed | Revenue NSW: Land tax thresholds and rates general threshold $1,075,000 and premium $6,571,000, frozen from the 2025 land tax year |
| VIC | duty | Confirmed | State Revenue Office Victoria: Land transfer duty – non-principal place of residence (current rates) non-principal place of residence general rates, contracts from 1 July 2021 (not indexed) |
| VIC | landTax | Confirmed | State Revenue Office Victoria: Land tax (current rates) general rates for the 2024–2033 land tax years (site value); includes flat $500 and $975 bands |
| QLD | duty | Confirmed | Queensland Revenue Office: Transfer duty rates transfer duty rates for investment property (no home concession), per $100 or part |
| QLD | landTax | Confirmed | Queensland Revenue Office: Land tax threshold and rates for individuals individuals: liable from $600,000 of total taxable value at 30 June |
| WA | duty | Confirmed | RevenueWA: Transfer duty assessment general rate of transfer duty, per $100 or part thereof |
| WA | landTax | Confirmed | RevenueWA: Land tax assessment aggregated taxable value of land; $300 flat from $300,001 |
| WA | metroLevy | Confirmed | RevenueWA: Land tax assessment Metropolitan Region Improvement Tax (MRIT) for land in the Perth metropolitan region |
| SA | duty | Confirmed | RevenueSA: Rate of stamp duty conveyance rates, per $100 or part of $100 |
| SA | landTax | Confirmed | RevenueSA: Land tax rates and thresholds 2026-27 general rates (thresholds gazetted 4 June 2026, indexed each year) |
| TAS | duty | Confirmed | State Revenue Office Tasmania: Rates of duty rates for transfers on or after 21 October 2013, per $100 or part |
| TAS | landTax | Confirmed Tasmania's published scale is 'from 1 July 2025'; no later scale was published when checked. | State Revenue Office Tasmania: Rates of land tax rates from 1 July 2025 (latest published scale) |
| ACT | duty | Not yet settled The ACT Revenue Office page still shows rates for transactions from 1 July 2025; the ACT usually updates duty each 1 July, so 2026–27 rates may differ. | ACT Revenue Office: Conveyance duty for non-commercial property non-owner-occupier rates for transactions on or after 1 July 2025 |
| ACT | landTax | Confirmed | ACT Revenue Office: How land tax is calculated 2026-27 valuation charge on the average unimproved value (AUV) of each rented property |
| ACT | landTaxFixed | Confirmed | ACT Revenue Office: How land tax is calculated fixed charge from 1 July 2026 |
| NT | duty | Confirmed | NT Legislation: Stamp Duty Act 1978 (NT), Schedule 1 clause 1 Stamp Duty Act 1978 Sch 1 cl 1: D = 0.06571441V² + 15V (V = value/1000) to $525,000; then 4.95%, 5.75% from $3m, 5.95% from $5m of the whole value |
| NT | landTax | Announced / legislated (secondary source) The Northern Territory does not list a land tax among its revenues; the calculator applies none. | NT Department of Treasury and Finance: Territory Revenue Office no land tax is listed among Territory revenues |
Default inputs
The starting values in each calculator (prices, rents, rates, growth) are illustrative inputs, not forecasts or advice. Replace them with your own figures. Where a tax year has no published rules yet, the latest enacted rules are held constant and the calculator lists that assumption next to its results.
Limits
YieldAfter is a planning tool, not tax advice, and it is not a substitute for an accountant or a tax return. Each calculator lists what it leaves out. If something looks wrong, email contact@yieldafter.com — corrections are logged publicly.