Kenya Monthly Rental Income Tax Calculator

About the Kenya Monthly Rental Income Tax Calculator

Work out the monthly tax on rent in Kenya. A resident landlord — an individual or a company — whose residential rent is more than Ksh 288,000 and no more than Ksh 15,000,000 in a year pays residential rental income tax of 7.5% of the gross rent, with no expenses allowed, as a final tax (section 6A of the Income Tax Act). A non-resident landlord pays a final 30% on rent from property in Kenya (section 6B).

Enter the rent received in a month and pick the month: the calculator checks which rule applies to you, works out the tax, credits anything an appointed rental income tax agent withheld, gives the date the return and the payment are due, and — if you filed or paid late — the penalties and interest of the Tax Procedures Act. Nothing you type leaves your browser.

Without a pass the page shows a free preview of your own result: the month’s tax, the checks and the due date, with the first rows of each table, while every other figure stays hidden until you unlock it with a Pro pass.

Who pays residential rental income tax

Section 6A of the Income Tax Act charges it on a resident person’s income from the use or occupation of residential property in Kenya, when that income is more than Ksh 288,000 and not more than Ksh 15,000,000 in a year of income. The Third Schedule sets the rate at 7.5% of the gross rent received; the tax is final, and no expenses, losses or capital deductions are allowed (KRA).

It does not cover rent from commercial property, residential rent above Ksh 15,000,000 a year, or a landlord who elects in writing to the Commissioner not to be taxed under it: their rent is declared with their other income in the annual return. Residential rent of Ksh 288,000 a year or less is outside it too, and goes in the annual return under the Act’s general rules. KRA’s page prints the lower figure as Ksh 280,000; the calculator follows the Act.

Non-resident landlords

Under section 6B a non-resident pays non-resident rental income tax on rent from property in Kenya at the Third Schedule’s rate for rent of immovable property, 30% of the gross amount, as a final tax. The non-resident registers through KRA’s simplified framework and files and pays by the 20th of the month after the month of the rent — unless a resident person receives the rent on their behalf, who then deducts the tax under section 35(1)(c).

Agents and credits

KRA can appoint rental income tax agents, who withhold 7.5% of the rent they collect and pay it over within five working days. On your return the tax they withheld is credited against your tax for the month (KRA).

When it is due, and late penalties

The return and the payment are due on or before the 20th of the month after the month of the rent, and a month with no rent needs a nil return (KRA). Under the Tax Procedures Act a late return costs 5% of the tax payable under it or Ksh 2,000 for an individual (Ksh 20,000 for a company), whichever is higher (section 83(1)(d)); the tax already paid and the tax an agent withheld come off before the 5% is worked out, so a return filed late after the tax was paid costs the minimum; late payment costs 5% of the tax (section 83A), and interest runs at 1% a month or part of a month, simple, and never more than the tax (section 38).

Limitations

• One month’s rent at a time. Several properties count together for the yearly band: enter the year’s total residential rent under The year and credits.
• Rent from commercial property, rent above the band and an election out are not taxed here: they go in your annual return with your other income.
• Penalties are worked out on the dates you enter; KRA may waive them or work out interest to the day of its own notice.
• An estimate from the Income Tax Act, the Tax Procedures Act and KRA’s guidance, not tax advice: KRA decides what you owe.

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