How is rental income taxed?
Learn how the ATO treats rental income and what property investors may need to declare.
Summary
Rental income is generally investment income that needs to be declared in a tax return. The ATO provides guidance on rental income and expenses for residential rental properties.
What this means
Rental income can include rent and other payments connected to a rental property. Property investors may also have deductible expenses, but the rules depend on the type of expense and timing.
Good records are important for both annual income tax and later CGT calculations.
Typical actions
- Declare rental income.
- Keep rental statements and lease records.
- Track rental expenses separately.
- Check which expenses can be claimed now and which must be claimed over time.
- Keep CGT records for the property.
Official ATO sources
Last checked: 20 June 2026
Rental income you must declare
Explains rental income that must be declared.
Rental expenses you can claim now
Explains rental property expenses that may be deductible now.
Residential rental properties
ATO hub for residential rental property tax information.
Related questions
- What rental property expenses can be claimed?
- What is negative gearing?
- What records should investors keep?
- What is capital gains tax?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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