Quick rental income tax estimator

What the quick rental income tax estimator does

Landlords can usually choose between a monthly tax on gross rent and an annual return on rent less expenses. Enter each property's yearly rent and its expenses, and your expected tax rate on net rent, and the estimator works out both and shows the cheaper route for each property and in total.

Who it is for

Landlords with one or several properties deciding how to be taxed, and accountants advising them.

How to use the workbook

1. Check the monthly rental tax rate on the Rates sheet and type your expected tax rate on net rent at the top.
2. List each property with its yearly rent.
3. Enter the yearly allowable expenses.
4. Read the tax under each route and the cheaper one.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Tax on gross rent worked out
• Tax on net rent worked out
• Cheaper route for each property
• Total saving at the top
• Rate kept in one cell

The workbook has these sheets: Instructions, Properties, Rates. The main table has the columns Property; Yearly rent; Yearly allowable expenses; Tax on gross rent (monthly route); Tax on net rent (annual route); Cheaper route; Saving. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• The annual route needs receipts for every expense.
• Your expected rate on net rent depends on your other income.
• Check the current rules with KRA before you choose.
• Revisit the comparison when your costs change.

Why keep this record

Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.

Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Rental income tax calculator. See more tax templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: Rental Income Tax Calculator
• Guide: Caretakers and property managers: roles, pay and oversight
• Guide: Understanding property valuation in Kenya
• Guide: Landlord and tenant communication: habits that prevent problems
• Another template: Individual tax return workpaper
• Another template: MRI versus annual rental tax comparison
• Another template: Monthly rental income (MRI) tracker

Need something different? Request a custom template, browse all guides or see every Excel template.