Work out home loan interest deduction instantly with clear inputs, formula shown and shareable results.
A self-occupied property allows interest up to a statutory cap; a let-out property sets interest against rental income first and any resulting loss is deductible up to the same annual cap. Excess loss is carried forward against future property income.
Property interest relief
Self-occupied: min(interest, cap). Let out: min(interest - rent, cap), remainder carried forward
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Because interest is set against the rent it produces first, so the full economic cost enters the computation.
Commonly eight years, and only against income from house property.