Rental income tax (MRI) calculator for Kenya
Type in the rent you collected and see the tax you owe KRA. The rate is 7.5% of gross residential rent, filed and paid by the 20th of the following month.
Add up all the residential rent you received in the month, before any expenses.
How the calculation works
MRI is simple on purpose. Take the gross rent you received in the month and multiply it by 7.5%. You do not subtract repairs, agent fees, rates or loan interest. For example, if tenants paid you KES 120,000 in the month, the tax is 120,000 × 0.075 = KES 9,000.
| Rent collected in the month | MRI at 7.5% |
|---|---|
| KES 30,000 | KES 2,250 |
| KES 60,000 | KES 4,500 |
| KES 120,000 | KES 9,000 |
| KES 250,000 | KES 18,750 |
| KES 500,000 | KES 37,500 |
Who has to pay MRI
- Resident landlords (individuals and companies) who rent out residential property.
- Total yearly rent above KES 288,000 and up to KES 15,000,000.
- Not for commercial premises, and not for rent below the lower limit.
When and how to file
- Add up the month’s rent collected from all your residential houses.
- Log in to iTax with your KRA PIN and file the Monthly Rental Income return for that month.
- Generate the payment slip (PRN) and pay through M-Pesa or your bank before the 20th.
- File a NIL return for any month in which you collected no rent, so you are not penalised.
Tip: the hardest part is knowing exactly what was collected in the month. In Kodi every payment is on the record, and the landlord report shows the month’s rent and the MRI on it, so the number is ready the day you file. See how.
Frequently asked questions
What is the rental income tax rate in Kenya?
Monthly Rental Income (MRI) tax is 7.5% of the gross rent you collect from residential property. It applies when your total rent for the year is more than KES 288,000 and not more than KES 15,000,000. There are no deductions for expenses under MRI.
When is MRI tax due?
The return and the payment are both due by the 20th of the month after you collected the rent. For example, rent collected in March is declared and paid by 20 April. If you collected no rent in a month, you still file a NIL return.
Does MRI apply to commercial property?
No. MRI is for residential rental income. Rent from commercial property is treated differently, for example under VAT once it passes the VAT threshold. Check with KRA or a tax adviser for your case.
Is the tax charged on rent I am owed or rent I received?
MRI is worked out on the gross rent you actually receive in the month. This calculator multiplies the rent you enter by the rate, so enter what was collected.
What if my rent is more than KES 15 million a year?
Above KES 15 million a year, residential rent falls outside MRI. You then declare the rental income in an annual return with your other income, and the allowable expenses can be deducted.
Can Kodi work out my MRI for me?
Yes. Kodi’s reports show your monthly rent collected and the MRI worked out on it, so you have the figure ready when it is time to file. See landlord reports.
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