Residential Rental Income Tax Filing & KRA Rules
Property owners in Kenya earning residential rental income are subject to KRA's Monthly Rental Income (MRI) tax. This is a simplified tax model designed to encourage real estate compliance.
How to File Your 7.5% Monthly Rental Tax Returns:
- Flat Tax Rate: Charged at a simplified flat rate of 7.5% on the gross monthly rent collected. No deductions for expenses or renovations are allowed.
- Tax Threshold: Applies to residential landlords earning gross rental income between KES 288,000 and KES 15 million annually.
- Filing Deadline: Returns must be declared and the 7.5% tax paid on the KRA iTax portal on or before the 20th day of every month. Late filing attracts a 2,000 KES penalty for individuals.