Rental Income Tax Calculator (Kenya)
Work out 7.5% Monthly Rental Income (MRI) tax on gross residential rent, and see whether you sit in the Ksh 288,000–15 million band.
Gross rent
All residential units combined. No expense deductions.
MRI is 7.5% of gross residential rent from 2024-01-01, for resident landlords whose annual rent is above Ksh 288,000 and not more than Ksh 15,000,000. File by the 20th of the following month. Subject to change.
MRI due this month
Ksh —
Enter gross rent.
- Gross rent
- Ksh —
- Annualised rent
- Ksh —
- MRI rate
- —
- Tax at 7.5%
- Ksh —
- Net after MRI
- Ksh —
- Annual MRI (if this continues)
- Ksh —
How MRI works in Kenya
Monthly Rental Income tax is a simplified 7.5% of gross residential rent for resident landlords. Repairs, agent fees, rates and loan interest are not deductible. It is a final tax — you do not add that rent to your annual PAYE return if you stay in the MRI band.
Example: collect Ksh 50,000 in a month. Tax is 7.5% × 50,000 = Ksh 3,750. You keep Ksh 46,250. File and pay by the 20th of the next month (e.g. January rent → 20 February). Commercial rent, non-resident landlords, and landlords above Ksh 15,000,000 a year use the ordinary income-tax rules instead.
Frequently asked questions
What is the MRI tax rate in Kenya? +
Monthly Rental Income tax is 7.5% of gross residential rent, from 1 January 2024 (Finance Act 2023). No repairs, agent fees or other expenses are deducted. It is a final tax for landlords who stay in the MRI band.
Who must pay MRI? +
Resident individuals or companies that earn residential rental income in Kenya, with annual gross rent above Ksh 288,000 and not more than Ksh 15 million. Commercial rent, non-resident landlords, and landlords above Ksh 15 million use ordinary income tax instead. You may elect out of MRI by notice to the Commissioner.
When is MRI due? +
File and pay by the 20th of the month after you received the rent (January rent → 20 February). If a tax agent withholds MRI, they remit within five working days of the deduction. Late filing and late payment attract KRA penalties and interest.
Can I deduct expenses from MRI? +
No. MRI is a flat percentage of gross rent. If you need to deduct expenses you must be outside MRI (above Ksh 15 million, or an election into the annual regime) and file ordinary income tax.
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