Rental Income Tax Calculator Kenya 2026

Kenya offers two ways to pay tax on residential rental income:

1. Monthly Rental Income (MRI) Tax — 7.5% of gross rent. This simplified regime applies to landlords earning between KES 288,000 and KES 15,000,000 per year from residential property. You pay 7.5% of gross rent received each month — no deductions, no expenses to track. Tax is due by the 20th of the following month via KRA iTax.

2. Normal Tax — 30% of net rental income. Under the normal regime, you deduct allowable expenses (maintenance, insurance, rates, interest on loans) from gross rent, then pay 30% tax on the net amount. KRA allows a deemed 30% deduction if you don't have records of actual expenses.

Which is better? If your actual expenses are less than 75% of rent, MRI (7.5%) is cheaper. If you have a mortgage and high maintenance costs, the normal regime may save you money. Use the calculator above to compare both.

Filing: MRI taxpayers file monthly returns on KRA iTax. Normal regime taxpayers file annual returns. Both must have a KRA PIN and be registered for rental income tax.