Renting out property tax 2026: 10% cost ratio or itemised? (with calculator)

If you rent out a flat as a private individual, you pay personal income tax (PIT) on the income. The big question is almost always the same: choose the 10% cost ratio, or itemised, invoice-based cost accounting? On the same income the two give a different tax base — and so a different tax due. The calculator below compares them with your own numbers in seconds. (The rules and rates here follow the Hungarian system; adapt to your market.)

Work out your own

Rental income tax — calculator

Private landlord, personal income tax. Compare the 10% cost ratio and itemised accounting.

Monthly rent

Ft / mo

Itemised cost input

Invoiced cost (renovation, repairs, depreciation, etc.).

How utilities are handled

The tenant pays the provider directly
Not your income — not counted in the tax base. They pay me and I forward it to the provider
The amount passing through you counts as income.

Monthly utilities (passed through)

Ft / mo

Yearly invoiced cost

Ft / yr

Recommended

10% cost ratio

Yearly income–

Tax base (income × 90%)–

PIT due / yr–

…per month–

Net (income − PIT)–

Recommended

Itemised (invoice-based)

Yearly income–

Tax base (income − cost)–

PIT due / yr–

…per month–

Net (income − PIT)–

💡Enter your figures for a recommendation.

Indicative calculation, not tax advice. It covers a private landlord's personal income tax (15% PIT, 10% cost ratio). Always verify the current rates, thresholds and rules that apply to you — including any other levies — on the tax authority's official site.

How the calculator works

The logic is deliberately simple and transparent:

Yearly income = monthly rent × 12. If the tenant pays utilities through you, that pass-through amount is also income, so it’s added.
10% cost ratio: the tax base is 90% of income (the 10% is deducted as cost, no invoices). Tax = base × 15%.
Itemised accounting: the tax base is income minus your invoiced yearly costs (can’t go below 0). Tax = base × 15%.

Rule of thumb: if your invoiced costs are more than 10% of income, itemised accounting usually wins — in exchange for keeping an invoice and records for every cost.

What not to forget

Treat utilities as income only if they pass through you. If the tenant pays the provider directly, that’s not your income.
Social contribution: long-term residential letting is generally exempt from social contribution tax — you usually don’t pay it on top of PIT. Verify the rule that applies to you with the tax authority.
The return is filed within the annual personal income tax return (the individual filing deadline is typically 20 May); for the itemised method, keep the invoices.
Clean records are worth a lot: RentTab helps you track rents, meter readings and charges transparently — but always prepare the actual tax return per the official rules, with an accountant if needed.

Important: this article and the calculator are indicative, not tax advice. Verify the current rates, thresholds and the rules that apply to you on the tax authority’s site, or ask an accountant.