Uganda Rental Income Tax Calculator
See the rental income tax on your property and exactly what you keep after tax.
Individuals cannot deduct expenses. The first UGX 2,820,000 of yearly rent is tax-free, then 12% on the rest.
Your rental tax, worked out
Enter your yearly rent to see the tax due and what you keep.
How Rental Income Tax Works in Uganda
Rental income tax is charged on the rent you earn from letting out property in Uganda. It is assessed once a year and is kept separate from your salary or business income, so it is worked out on its own rather than added to your monthly PAYE. The rules differ depending on whether the landlord is an individual or a company.
Rental Tax for Individuals
If you own property in your own name, the first UGX 2,820,000 of rent you earn in a year is tax-free. Above that, tax is charged at a flat 12% of the gross rent. Individuals are not allowed to deduct any expenses, so repairs, agent fees and mortgage interest do not reduce the tax.
- Take your total rent for the year.
- Subtract the tax-free threshold of UGX 2,820,000.
- Charge 12% on what is left. That is your rental income tax.
Rental Tax for Companies
A company that earns rent is taxed differently. It can deduct the expenses of earning that rent, but the deduction is capped at 50% of the rent. Tax is then charged at 30% on the balance. There is no tax-free threshold for companies.
Worked Example
Take an individual who earns UGX 12,000,000 in rent over the year. After the UGX 2,820,000 threshold, UGX 9,180,000 is chargeable. At 12%, the tax is UGX 1,101,600, leaving UGX 10,898,400. A company earning the same rent with UGX 8,000,000 of expenses can only claim UGX 6,000,000 (the 50% cap), leaving UGX 6,000,000 chargeable and UGX 1,800,000 in tax at 30%.