Tax on Rental Income in Uganda

How much rental income tax does an individual landlord pay?

An individual who rents out land or buildings in Uganda pays rental tax on gross rent, which means the rent received before any costs. Section 5 of the Income Tax Act, Cap. 338 charges rental tax on every person with rental income. Section 6(2) sends individuals to Part II of Schedule 4, which sets the rate at nil for gross rental income up to UGX 2,820,000 a year (UGX 235,000 a month) and 12% above that. PwC's Uganda tax summary, last reviewed on 22 October 2026, states the same rule and adds that an individual cannot deduct expenses against rental income. The Uganda Revenue Authority (URA) rental income tax page says the same thing: only the threshold comes off, and no other deductions are allowed.

The 12% applies to the part of the rent above the threshold, not to the whole amount. The table below is our own arithmetic from those rates. The UGX 6,000,000 and UGX 10,000,000 rows match worked examples published by URA and by the URA Commissioner Domestic Taxes.

A partnership is not taxed as a body. Under section 5(2)(d) the tax is worked out on each partner using the individual rate, and URA's page gives an example where two partners sharing in the ratio 2:3 are each taxed on their own share.

How is a company or other entity taxed on rent?

A company has no UGX 2,820,000 threshold. Section 7(2) charges a company's rental income at the company rate in Part III of Schedule 4, which is 30%. Section 22(1)(c) and (2) allow a company to deduct the costs of producing the rent, but only up to fifty percent of the rental income for the year. URA's page gives the example of a company with UGX 15,000,000 gross rent: after the 50% allowance, UGX 7,500,000 is chargeable, and 30% of that is UGX 2,250,000. That is an effective rate of 15% of gross rent when costs reach the cap.

The rental tax is separate from a company's other business tax. Section 5(3) says rent taxed under section 5 is left out of the gross income taxed under section 4. If you hold a rental block in a company, ask an accountant whether the company route helps. Individuals pay 12% on the excess over UGX 2,820,000 with no cost deduction, while companies pay 30% on rent after a capped deduction. The break-even depends on your real costs and your own tax position, so we do not give a rule of thumb here.

Do diaspora and non-resident landlords pay rental tax in Uganda?

Yes. Section 82 of the Income Tax Act imposes tax on a non-resident person who derives rent from sources in Uganda. Part V of Schedule 4 sets the rate at 15%, applied to the gross rent, and section 87 makes it a final tax: the rent is left out of the landlord's other Ugandan income and no expense is deducted. The liability is met if a withholding agent has withheld the tax and paid it to URA. Who counts as a withholding agent for a rented house, and how an individual tenant should handle it, is a point to confirm with URA before you set the rent, because we found no published URA guidance that settles it for private tenants.

Whether you are resident or not matters. Section 9(1) treats an individual as resident for a year of income if the person has a permanent home in Uganda, or is present for 183 days or more in a twelve-month period, or averages more than 122 days a year over three years. A diaspora Ugandan who keeps a permanent home here may therefore be treated as resident even while living abroad. If so, the resident rule of 12% above UGX 2,820,000 applies instead of the non-resident rule. Residence is decided on your facts, so ask URA or a tax adviser.

Uganda is only half of the picture for people in the UK or the US, because your home country may tax the same rent. See Uganda property tax UK resident and Uganda property US taxes. For Kenya, where a different monthly rule applies, see Landlord Tax in Kenya: Monthly Rental Income (MRI).

How do I register, file and pay?

URA's landlords page says landlords register with URA for taxes. For tax registration an individual needs a National ID or two other valid identification documents, and a company needs its certificate of incorporation. It also says to register with your local council for property rates, such as Kampala Capital City Authority in Kampala. Section 10 of the Landlord and Tenant Act, 2022 makes the landlord responsible for taxes and rates charged on the premises, and requires a landlord to refund a tenant who paid them.

The filing date has two sources, and you should check which applies to you. URA's rental income tax page says the annual return is due within six months after the end of the year of income, and the year of income runs from 1 July to 30 June. PwC's tax summary reports that from 1 July 2026 individuals may file and pay rental income tax monthly. The URA Commissioner Domestic Taxes has also written about paying in quarterly instalments or monthly through mobile money, with UGX 71,800 a month on a UGX 10,000,000 rent. That piece is an opinion article, not the statute. Pay after filing through banks, mobile money or the other payment channels listed on the URA landlords page.

Attach your tenancy agreements or the rent receipts you issued to your return, as URA's page asks. Rental tax paid in advance can be set against rental tax only, not against other taxes.

What are EFRIS receipts and withholding tax doing to rent?

Two newer points affect landlords as of November 2026. First, news reports of URA's notices say renting real estate was added to the sectors required to use the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) from August 2026, and that landlords earning below UGX 2,820,000 a year need not issue e-receipts. Pulse Uganda reported this on 8 September 2026, and the Daily Monitor reported in September 2026 that URA's Commissioner General told Kampala landlords EFRIS receipts must match tenancy agreements and declared income. Read the current URA notice before acting on these reports. In February 2026 the Office of the Prime Minister recorded a directive that landlords register with EFRIS to issue rental receipts.

Second, URA's landlords page says 6% withholding tax applies to rent over UGX 1,000,000 paid by a designated withholding agent, such as a company tenant. The amount withheld is credited against the tax you finally owe. If your tenant is a business, ask whether they will withhold. VAT can also apply to commercial rent, but the sources we opened give different registration thresholds, so ask URA about VAT before you rent shops or offices.

What records should a landlord keep?

The tax rules and the tenancy law point to the same habit. Section 25 of the Landlord and Tenant Act, 2022 requires a written receipt for rent, showing the amount and the period paid, and section 25(3) requires the landlord to keep a record of all receipts. Keep your signed agreement, receipts or EFRIS invoices, bank or mobile-money statements, and your URA return together for each year. Because individuals cannot deduct expenses, repair bills do not reduce the tax, but they still matter if a tenant disputes landlord repairs. If you charge extra for security or cleaning, see landlord service fee.

A landlord who uses a manager should still file the return in their own name. The Act lets a manager collect rent for you (section 49), but the tax liability stays with the person who owns the rent. Compare costs in What a Property Manager Does and Charges, and see Collect Rent Online in Uganda With Pesapal or Flutterwave for payment records.

Is income from short stays and subletting taxed the same way?

We found no URA page that sets a separate rate for furnished short stays, so we do not state one. Rent you receive for letting a house or flat is rental income under section 5, but how URA treats a short-stay business with services is a point to put to URA or an accountant. Owners who list a short-stay property should read Short-Let and Airbnb Rules and Tax in Uganda, Airbnb in Kampala: Areas, Hosting Rules and Tax and airbnb apartments Kampala income. A tenant who sublets must have written consent first, as explained at Subletting a Rental in Uganda. Building small units for rent is covered at muzigo rental business, and refunds at deposit refund landlord.

Homes to rent now are at homes to rent now, and you can list your rental with us. Tenants looking for houses for rent in Kampala can also read How to Avoid Rental Scams in Kampala.

Frequently asked questions

Related guides

• Houses and Apartments for Rent in Uganda
• Short-Let and Airbnb Rules and Tax in Uganda
• Service Fees Under the 2022 Act: What Landlords Can Charge
• UK Tax on Uganda Property for UK Residents
• US Tax on Uganda Property: FBAR, FATCA, Rental Income
• What a Property Manager Does and Charges