Tax: am I responsible for taxes on rental income if I have a mortgage on the property? Tax: I will be taxed on my additional income with the rate of 33%, and this number comes from my W2 income. I have a property with a mortgage. I am planning to buy another property (with a mortgage), move to the new property, and rent the old one. Now, If I earn 3K per month for the rental on the property and I have a mortgage of 3K per month, I will be responsible for 1K per month tax for the rental income?