Answers · UK 2025/26
Is rental income from renting a room in my house taxable?
Not always. Under the Rent a Room scheme, you can earn up to £7,500 per year tax-free from letting a furnished room in your own home. Income above this threshold is taxable.
Full answer
The Rent a Room scheme allows owner-occupiers and tenants with their landlord permission to earn up to £7,500 per year tax-free by renting out furnished accommodation in their main residence. The £7,500 threshold is halved to £3,750 if you share the rental income with a partner or spouse. If your gross rental income from the room exceeds the threshold, you have two options: pay tax only on the amount above £7,500 using the simplified method, or opt out of the scheme and declare all rental income less allowable expenses in the usual way. You must report the income on a Self Assessment tax return if it exceeds the threshold. The scheme does not apply to commercial lettings or rooms in a property that is not your main home.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.