Home Back

Rent Increase Calculator California 2025 Tax

Rent Increase Formula:

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

USD
%

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is the Rent Increase Calculator?

This calculator determines the maximum allowable rent increase for California in 2025 based on current rent, CPI (Consumer Price Index), and California's rent control laws that cap increases at CPI + 5%, with a maximum of 10%.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

Where:

Explanation: The calculation ensures the rent increase doesn't exceed California's legal limits while accounting for inflation.

3. California 2025 Rent Control Rules

Details: Under California's Tenant Protection Act (AB 1482), annual rent increases are capped at 5% + CPI (local or regional), with a maximum of 10% regardless of CPI. This applies to most rental properties more than 15 years old.

4. Using the Calculator

Tips: Enter current monthly rent in USD and the relevant CPI percentage. The calculator will determine the maximum legal rent increase for 2025 under California law.

5. Frequently Asked Questions (FAQ)

Q1: What CPI measure should I use?
A: Use the regional CPI for your area as published by the Bureau of Labor Statistics. For statewide calculations, use the California CPI.

Q2: Are all rental units covered?
A: Most are covered, but exceptions include units built within last 15 years, single-family homes (unless owned by corporations), and some duplexes where owner occupies one unit.

Q3: How often can rent be increased?
A: No more than once every 12 months for covered units under AB 1482.

Q4: What about local rent control laws?
A: Some cities have stricter limits (e.g., Los Angeles, San Francisco). Always check local ordinances which may override state limits.

Q5: Are there tax implications?
A: Increased rental income is taxable, but landlords may also qualify for additional deductions related to property maintenance and improvements.

Rent Increase Calculator California 2025 Tax© - All Rights Reserved 2025