Airbnb and Short-Stay Income Tax Calculator Kenya 2026

Short-stay income is a business

Renting out a room, apartment or house on Airbnb, Booking.com or a similar platform is often treated differently from a traditional long let. Short stays usually involve services such as cleaning, linen, check-in and sometimes meals, and the income is closer to hospitality business income than to passive rent. The correct tax regime therefore depends on how you run the property, and there is not always a single clear answer. This calculator shows the figures under two possible approaches so you can see the range.

Route one: income tax on your profit

Under the annual income tax route you add up your gross booking income, deduct platform fees and the expenses of running the let, and pay income tax on the profit at your usual bands. If you have a salary or other income, the profit sits on top of it, so the calculator measures the extra tax the short-stay profit causes. Expenses can include cleaning, utilities, internet, furnishing and repairs, platform commission and insurance. Keep invoices.

Route two: turnover tax

Small businesses with annual sales between KES 1,000,000 and KES 25,000,000 can be taxed under turnover tax at 3% of gross sales. No expenses are deducted. For a host with high costs, route one is usually cheaper, and for a host with low costs, turnover tax can be simpler. Not every activity qualifies for turnover tax: the rules exclude certain income, and you must register for it with KRA.

A worked example

Take gross booking income of KES 1,200,000, with KES 100,000 of platform fees and KES 100,000 of other expenses. The profit is KES 1,000,000, and the extra income tax is KES 208,600.20. Turnover tax on the gross income would be KES 36,000.00.

VAT and other charges

If your short-stay sales are VAT-taxable and you are registered, VAT is charged on accommodation. A host with other VAT-taxable sales needs to watch the registration threshold. The calculator has a box for VAT registration, and it shows the VAT on your income. County governments and the tourism sector can have separate licences, levies and registration requirements, such as a tourism levy and a business permit, which this tool does not calculate.

Withholding by platforms

Some platforms and payment providers report host income or withhold tax. Whatever the platform does, you remain responsible for declaring your income. Keep platform statements for every month, since KRA can match them with your return.

Which route should I use?

That depends on the facts: whether you provide hotel-type services, how large your costs are, whether you are the owner or a sub-letter, and your other income. A tax practitioner can look at your circumstances. The calculator is meant to give you the numbers for each route so you can have an informed conversation.

Limits of the estimate

The calculator does not decide which regime the law requires for your activity, and it does not include the county levies and licences that may apply. The result is an estimate for information only, so confirm the correct regime before you rely on it.

Records worth keeping

Short-stay hosts are easy to audit because platforms keep a complete history of every booking. Export the payout report each month, and match it to the money that reached your account, so that the income on your return agrees with the platform's figures. Keep receipts for supplies, laundry, repairs and furnishing, with the date and the property they relate to. If you share a property with a co-host or lease it from a landlord, keep the agreement, because it decides whose income the bookings are. Finally, note any nights you used the property yourself: expenses for private use are not deductible, so apportion costs sensibly, and be prepared to explain the method if asked.

Guides, tools and templates for this topic

Read next: Monthly rental income tax or annual tax: which route is better for a landlord?, How to file a Monthly Rental Income return, Withholding tax in Kenya explained: rates, agents and credits

Related calculators: Rental Income Tax Calculator, Turnover Tax Calculator, VAT Calculator

More in the blog and the template shop, or ask for a custom template.