Crown Real Estate

Property taxes and Statutory Fees in Kenya

If you are a property owner in Kenya, these are the taxes you should know about;

  1. Rental Income Tax

Residential Properties & Mixed-Use Properties Rent Taxes

This tax is payable by people with rental income of Kshs. 144,000 and Kshs. 10,000,000 per annum. The tax must be filled every month on or before the 20th of every month without expenses, losses or capital deduction.

Persons with rental income below Kshs. 144,000 or above Kshs. 10,000,000 per year is required to file annual tax returns and declare the rental income with income from other sources.

To calculate the residential tax income of income between Kshs. 144,000 and Kshs. 10,000,000, use the below calculator.

Residential Rental Income Tax Calculator

Annual Rent*Rental Income Tax

You can also calculate via the iTax platform by completing the monthly return on the platform. If for any reason you do not receive rent as the landlord, you shall file NIL return.

You can pay via Mpesa by using KRA PIN number 572572 and the account Number been the Payment Registration Number quoted at the top right corner of the generated payslip.

Failure to file and pay on or before the 20th of the following month attracts a penalty of Kshs. 20,000 or 5% of the due tax (whichever is higher) and subsequent interest of 1% per month on the unpaid tax until payment is made in full.

Commercial Property Rent Taxes

Value Added Tax (VAT) is chargeable on commercial rental income and is charged to the tenant at a rate of 16%. The VAT on the sale of commercial property was however declared illegal for the sale of commercial property.

Other commercial rental income is required to file annual returns and declare rental income.

2. Stamp Duty

Stamp duty is tax paid during the sale or purchase of a property. The stamp duty is based on the sale price of the property.

In urban areas, stamp duty is 4% and 2% of rural land

To determine the stamp duty charges, use the calculator below.

Stamp duty of Urban Land

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