KRA Rental Income Tax Calculator (Kenya)
Monthly Rental Income (MRI)
Multi-Property / Unit Calculator
Landlord's Monthly Summary
For landlords with multiple units. Add each unit's rent to calculate your total monthly rental income and tax liability.
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Rental Income FAQ
What is Monthly Rental Income (MRI) tax?
MRI is a tax payable by resident persons on their rental income from residential properties. It's a simplified tax, calculated at a flat rate on the gross rent received each month.
What is the current MRI tax rate in Kenya?
The current tax rate for Monthly Rental Income from residential properties is 7.5% of the gross rent received.
Who is exempt from paying MRI tax?
You are exempt from MRI if your annual residential rental income is below KSh 288,000 or above KSh 15,000,000. In such cases, the rental income must be declared with your other income in your annual tax return.
Can I deduct expenses like repairs or agent fees from my rental income?
No. For the simplified Monthly Rental Income (MRI) regime, no expenses are allowed for deduction. The 7.5% tax is calculated directly on the gross rent you receive from tenants.
What is the deadline for filing and paying MRI?
The deadline for filing and paying MRI is on or before the 20th day of the month following the month the rent was received. For example, rent for January must be filed and paid for by February 20th.
How do I pay my rental income tax on iTax?
You must generate a payment slip via the KRA iTax portal under the "Payments" tab and select "Payment Registration." Choose the tax head "Income Tax" and sub-head "Income Tax - Rental Income," then make the payment through a partner bank or mobile money.
What happens if I have both residential and commercial rental properties?
You must separate the two. The income from residential properties is taxed under the 7.5% MRI regime. The income from commercial properties must be declared in your annual income tax return and is taxed at the standard individual or corporate rates.
What are the penalties for not declaring or late payment of rental income tax?
Penalties include 2% of the principal tax due for late filing, 5% of the tax due for late payment, and a late payment interest of 1% per month on the unpaid tax.
Do I still need to declare rental income in my annual KRA return if I pay MRI monthly?
No. If your only source of income is residential rental income that falls within the MRI bracket (KSh 288k to KSh 15m annually), and you have been filing and paying the 7.5% tax monthly, you are not required to file an annual return for that income.
Is rental income from Airbnb subject to MRI?
Yes. Income from renting out residential property on a short-term basis, such as through Airbnb, is considered residential rental income and is subject to the 7.5% Monthly Rental Income tax, provided it falls within the required income brackets.