Rental income annual tax computation
Enter the rent and costs of each property and compare monthly rental income tax with normal income tax to see which costs you less.
Landlords can often choose between a flat tax on rent and normal tax on profit. This workbook takes the rent and the running costs of each property, works out the net rent, computes the tax under the annual route using the bands and relief, computes the flat monthly rental income tax on the gross rent and tells you which is lower and by how much.
Landlords with one or several properties, and their accountants, who want to decide how to be taxed and to see the effect of repairs, interest and agent fees on the answer.
What is included
- Rent and six kinds of cost for each property
- Net rent worked out per property
- Annual-route tax using the bands and relief
- Flat monthly rental income tax on gross rent
- A clear cheaper-route result
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How to use it
- Check the rates and bands on the Rates sheet.
- List each property with its rent for the year and each type of cost.
- Add any other taxable income on the Tax sheet.
- Read both tax figures and the cheaper route.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
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What the rental income annual tax computation does
Landlords can often choose between a flat tax on rent and normal tax on profit. This workbook takes the rent and the running costs of each property, works out the net rent, computes the tax under the annual route using the bands and relief, computes the flat monthly rental income tax on the gross rent and tells you which is lower and by how much.
Who it is for
Landlords with one or several properties, and their accountants, who want to decide how to be taxed and to see the effect of repairs, interest and agent fees on the answer.
How to use the workbook
- Check the rates and bands on the Rates sheet.
- List each property with its rent for the year and each type of cost.
- Add any other taxable income on the Tax sheet.
- Read both tax figures and the cheaper route.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Rent and six kinds of cost for each property
- Net rent worked out per property
- Annual-route tax using the bands and relief
- Flat monthly rental income tax on gross rent
- A clear cheaper-route result
The workbook has these sheets: Instructions, Tax, Properties, Rates. 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
- Include only costs that relate to the rental property.
- Remember that loan interest on a rental loan is a cost, but the capital repayment is not.
- Check the conditions and limits for the flat tax before you rely on it.
- A landlord must file whichever route they use; electing is done in writing.
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, Withholding tax on rent 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
- Free calculator: Withholding Tax on Rent Calculator
- Guide: Withholding tax in Kenya explained: rates, agents and credits
- Guide: Monthly rental income tax or annual tax: which route is better for a landlord?
- Guide: The 30 June tax deadline
- Another template: MRI versus annual rental tax comparison
- Another template: Monthly rental income (MRI) tracker
- Another template: Rent receipt book
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