Rental Yield Calculator for Uganda
Updated 3 November 2026 · Land & Property editorial team
Gross yield is a year of rent divided by the price. Net yield also takes off vacancy, running costs and tax. As of November 2026 an individual landlord in Uganda pays 12% on gross rent above UGX 2,820,000 a year, with no expenses deducted. On a UGX 300 million flat renting at UGX 2.5 million a month, a 10% gross yield falls to about 7.3% net in our worked example.
- Individual rental tax
- 12% of gross annual rent above UGX 2,820,000 (as of Nov 2026)
- Expenses deducted for individuals
- None allowed (URA, PwC)
- Company rental tax
- 30% after an expense allowance of up to 50% of gross rent (URA)
- Monthly filing option
- Individuals from 1 July 2026 (PwC Tax Summaries)
How does the rental yield calculator work?
Enter what you pay and what you expect to earn, and the calculator on this page returns a gross and a net yield. Every step is shown so you can change one input and watch the result move.
- Purchase price and, if you want, buying costs such as stamp duty, which you can estimate with the property transfer cost calculator.
- Monthly rent you expect to charge.
- Vacancy in months a year with no rent. We do not preset it, because we found no sourced vacancy rate for Uganda. Use your own evidence.
- Running costs a year such as service charge, repairs, insurance, management and cleaning.
- Owner type: individual or company, because the tax rule differs.
Gross yield = annual rent / price. Net yield = (rent actually received - running costs - rental tax) / total cost of buying. If you want to embed the calculator on your own site, ask our team whether that is possible for your page.
How is rental income taxed in Uganda?
As of November 2026, an individual landlord pays rental income tax at 12% on annual gross rent above UGX 2,820,000. Rent at or below that amount is taxed at nil. Individuals cannot deduct expenses against rental income. URA's rental income pages and PwC's Uganda tax summary, last reviewed on 22 October 2026, both say so. The 12% applies to the part above the threshold, not to the whole amount.
| Owner | Rule | Source |
|---|---|---|
| Individual | Nil up to UGX 2,820,000 a year, then 12% of the excess. No expense deduction. | URA; PwC Tax Summaries |
| Company, trustee or retirement fund | Deduct up to 50% of gross rent for expenses, then tax the balance at 30%. | URA |
| Filing | Annual return within six months after the year of income, which runs 1 July to 30 June. From 1 July 2026, individuals can file and pay monthly. | URA; PwC Tax Summaries |
URA's worked example: rent of UGX 10,000,000 a year leaves UGX 7,180,000 above the threshold, and 12% of that is UGX 861,600 a year, or UGX 71,800 a month. The calculator follows the same method. Because costs do not reduce an individual's tax, a big repair bill lowers your net yield but not your tax. Dates and penalties are in property tax dates: rental tax, rates and ground rent, and the full rules are in tax on rental income in Uganda. A non-resident landlord or a landlord taxed abroad should check their own position with URA, and see US tax on Uganda property for the US side.
What does a worked example look like?
These examples are hypothetical. The price and rent are round numbers we chose to show the sum. They are not listings and not market evidence, and they do not predict what you will earn.
Example 1: a flat. Price UGX 300,000,000. Rent UGX 2,500,000 a month. One month vacant a year. Running costs UGX 2,400,000 a year. Buying costs UGX 4,530,000, being 1.5% stamp duty of UGX 4,500,000 plus UGX 30,000 of search and registration fees, as of November 2026.
- Gross yield: UGX 30,000,000 / UGX 300,000,000 = 10.0%.
- Rent received after vacancy: UGX 27,500,000.
- Tax: 12% x (27,500,000 - 2,820,000) = UGX 2,961,600.
- Net income: 27,500,000 - 2,400,000 - 2,961,600 = UGX 22,138,400.
- Net yield on price plus buying costs of UGX 304,530,000: about 7.3%.
Example 2: a small house. Price UGX 150,000,000. Rent UGX 1,200,000 a month, no vacancy, running costs UGX 1,200,000 a year. Gross yield 9.6%. Tax is 12% x (14,400,000 - 2,820,000) = UGX 1,389,600. Net income is UGX 11,810,400, which is 7.9% of the price before buying costs.
The next table shows how vacancy alone moves Example 1, using the same costs and tax method and the price only as the base.
| Vacant months | Rent received | Tax | Net income | Net yield on UGX 300M |
|---|---|---|---|---|
| 0 | UGX 30,000,000 | UGX 3,261,600 | UGX 24,338,400 | 8.1% |
| 1 | UGX 27,500,000 | UGX 2,961,600 | UGX 22,138,400 | 7.4% |
| 2 | UGX 25,000,000 | UGX 2,661,600 | UGX 19,938,400 | 6.6% |
What vacancy rate should I assume?
There is no published national vacancy rate we could verify, so the calculator does not preset one. A fair way to choose is to test three cases: no vacancy, one month a year and two months a year, as in the table above. Then look at what the property needs to earn to cover your costs in the worst case.
Evidence to gather before you buy: how long similar units near the property stayed empty, what rent the agent actually achieved rather than advertised, and whether the building has an owners' association with a service charge. For apartments, the service charge matters as much as vacancy, so ask for the latest figure in writing. Our guide to rental yields in Kampala by property type lists what we could source. Treat any yield you are quoted as an asking figure, because prices and rents in adverts are not sale prices.
Does it work for Airbnb and short-stay homes?
Yes, with care. For a short stay, enter the average nightly rate and the share of nights you expect to be booked, and the tool turns that into a yearly income. Then it applies your running costs, which are higher for a short stay because of cleaning, utilities, supplies and replacing items.
If you list a short stay with Land & Property, guests book and pay through us, and we pay the owner after taking our percentage. Enter the payout you receive, not the nightly rate the guest sees, otherwise your yield will look too high. The terms are on the host payouts and commission page, and the licensing and tax side is in short-let and Airbnb rules and tax in Uganda. We found no separate URA rate for furnished short stays, so the calculator uses the same rental tax rule as a planning assumption. Confirm with URA or an accountant before you rely on it. For a comparison of the two models, see short-let vs long-let in Kampala.
When should I not trust a yield figure?
A yield is a snapshot, not a promise. It does not include a fall in rent, a bad tenant, a long repair, a change in tax or the cost of selling later. It also ignores what you could earn elsewhere, which is why you should compare it with other options. See land vs treasury bonds vs rental property in Uganda for how to do that.
This is general information, not financial or tax advice, and no yield is guaranteed. If you want to see what is on offer, browse plot listings or ask our team on WhatsApp or by email. See also property costs, taxes and mortgages in Uganda.
Frequently asked questions
How is rental income taxed?
As of November 2026, an individual pays 12% on annual gross rent above UGX 2,820,000, with no expenses deducted. Rent up to that amount is taxed at nil. A company deducts up to 50% of gross rent and pays 30% on the balance. Check dates and rules with URA.
What vacancy rate should I assume?
We found no verified national vacancy rate, so the calculator does not preset one. Test no vacancy, one month and two months a year, then use evidence from similar units near your property, such as how long they stayed empty and the rent actually achieved.
What is the difference between gross and net yield?
Gross yield is a year of rent divided by the price. Net yield takes off the months with no rent, running costs and rental tax, and divides by the full cost of buying. Net yield is always lower, and it is the one that tells you what you keep.
Can I deduct repairs from my rental tax as an individual?
No. URA and PwC say an individual cannot deduct expenses against rental income, only the UGX 2,820,000 threshold. Repairs still reduce your net yield, but they do not reduce your tax. Companies may deduct up to 50% of gross rent.
Is the result a guarantee of income?
No. The result applies a formula to the numbers you enter. Rents, vacancy and costs change, and asking prices and rents in adverts are not what you will necessarily get. This is general information, not financial or tax advice.
Sources
- Guide on rental income tax, Uganda Revenue Authority (accessed 2026-11)
- Uganda: taxes on personal income, last reviewed 22 October 2026, PwC Tax Summaries (accessed 2026-11)
- Rental income tax: how to pay, Uganda Revenue Authority (Taxman) (accessed 2026-11)
- Service costs, Department of Land Registration, Ministry of Lands, Housing and Urban Development (accessed 2026-11)