Table of Contents
- What is iTax?
- Types of Real Estate Taxes under iTax
- Step-by-Step: How to File Real Estate Taxes on iTax
- Common Mistakes to Avoid
- Benefits of Complying Early
- FAQs
- Conclusion & Call to Action
What is iTax?
iTax is KRA’s online system designed to simplify filing and payment of taxes. For real estate investors, it is the central platform for declaring income, filing returns, paying taxes, and generating compliance certificates.
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Types of Real Estate Taxes under iTax
1. Rental Income Tax
- Applies to landlords earning rental income.
- Residential landlords are taxed under the Monthly Rental Income (MRI) system at 5% of gross rent.
- Filing deadline: 20th of the following month.
👉 Related Blog: Understanding Rental Income Tax in Kenya
2. Capital Gains Tax (CGT)
- Charged when selling or transferring property.
- Rate: 5% of the net gain.
- Payable within 30 days after transfer.
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3. Stamp Duty
- Paid when transferring property ownership.
- Rate: 4% (urban)and 2% (rural) of property value.
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4. Withholding Tax
- Applies in real estate-related payments, e.g., to contractors or service providers.
Step-by-Step: How to File Real Estate Taxes on iTax
- Log into KRA iTax Portal.
- Go to Returnsand choose the relevant return type.
- Fill in property details— rent, sale value, transfer, etc.
- Attach supporting documents— agreements, leases, receipts.
- Generate Payment Slip (PRN).
- Pay via MPESA, bank, or approved channels.
- Download acknowledgment receipt.
Common Mistakes to Avoid
- Underreporting rental income.
- Missing filing deadlines.
- Ignoring capital gains tax after property sales.
- Choosing the wrong filing category (MRI vs annual returns).
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Benefits of Complying Early
- Avoid heavy penalties.
- Boost credibility when applying for mortgages.
- Peace of mind with compliance.
- Unlock access to government tenders and financing.
FAQs
- Do I pay tax if my rental house is vacant?
No. File a nil return if no income was earned. - What if my tenant pays rent late?
Declare rental income in the month you receive it. - Do I need a Tax Compliance Certificate as a property owner?
Yes. It’s required in transfers, mortgage applications, and many legal processes. - What’s the penalty for late filing?
The penalty is 5% of tax due or KSh 2,000 (whichever is higher).
Conclusion & Call to Action
Navigating iTax and real estate taxation in Kenya can be tricky, but compliance is key to protecting your investments. Whether you are a landlord, buyer, or seller, knowing your obligations under iTax saves you from costly mistakes.
At Realty Boris, we help you simplify property transactions — from tax compliance and legal support to buying and selling properties with confidence.
👉 Contact us today to get professional guidance on iTax and property taxes. | 🌐 Visit Realty Boris Website
