Here is a conversation that happens a lot in Kigali. A landlord has been renting out their property for three years. They know they should be paying tax on the income. They have never done it. Not because they are dishonest — because nobody ever explained the process clearly and they assumed it was complicated.
It is not that complicated. This guide gives you the actual rules from the Rwanda Revenue Authority, the real tax rates, and a step-by-step on how to file. No jargon, no guessing.
Tax laws change. The rates and rules in this guide are based on official RRA publications as of early 2026. Always verify current requirements at rra.gov.rw or consult a licensed accountant in Rwanda before filing.
Who has to pay rental income tax?
The Rwanda Revenue Authority is clear on this: any individual who earns income from renting out immovable property in Rwanda must pay rental income tax. This includes:
- Residents renting out a house, apartment, or commercial space
- Non-residents (diaspora landlords) earning rental income from Rwandan property
- Anyone renting out land, buildings, or improvements on land
The one exception: if your total annual rental income is below 180,000 RWF (15,000 RWF per month), you are in the zero percent band and owe no tax. But you are still required to declare.
The actual RRA tax rates for landlords
This is where most guides get it wrong. Rental income tax in Rwanda is not a flat rate. It is a progressive system with three bands, based on your annual gross rental income before the deduction:
| Annual gross rental income | Tax rate |
|---|---|
| RWF 1 – RWF 180,000 | 0% |
| RWF 180,001 – RWF 1,000,000 | 20% |
| Above RWF 1,000,000 | 30% |
Source: Rwanda Revenue Authority, rra.gov.rw — confirmed January 2026
The 50% deduction — this is important
Before applying the tax rate, the RRA allows you to deduct 50% of your gross rental income as expenses for maintenance and upkeep. You do not need to document actual expenses to claim this — it is a standard deduction that applies to every landlord.
This means your taxable income is always half of what you actually receive in rent.
If you earn 2,000,000 RWF per year in rent, you apply the 50% deduction first: taxable income = 1,000,000 RWF. Then you apply the 30% rate to the portion above the 1,000,000 RWF threshold. This is significantly less than paying 30% on your full rental income.
A worked example
Let’s say you rent out a 2-bedroom apartment in Kicukiro for 200,000 RWF per month. Your annual gross rental income is 2,400,000 RWF.
Tax calculation: 200,000 RWF/month rent
*The progressive bands apply to taxable income after the 50% deduction. Consult RRA or an accountant for exact band application.
Kigali’s residential market continues to grow — the RRA is actively increasing compliance enforcement
When is the deadline?
Rental income tax is declared and paid annually. The deadline is 31 January of the year following the tax period.
So: rental income earned throughout 2025 must be declared and paid by 31 January 2026. Income earned in 2026 must be declared by 31 January 2027.
For landlords with quarterly obligations (those above certain income thresholds), quarterly advance payments are also required. The second quarter is due by 30 April, the third by 31 July, and the fourth by 31 October.
How to actually file
- Register with RRA — if you are not already registered as a taxpayer. Go to rra.gov.rw or visit any RRA office. You need your national ID (or passport if you are abroad).
- Log in to the e-Tax portal at etax.rra.gov.rw. This is where all declarations and payments are done.
- Select “Declaration of Decentralized Taxes” — rental income tax is categorised as a decentralized tax, collected by local government entities.
- Enter your rental income for each property you own.
- Apply the 50% deduction to calculate your taxable income.
- Pay via MoMo or bank transfer — you can also use *800# on your phone, follow the prompts, and get a payment reference number.
The RRA requires that a copy of any rental agreement be submitted to the tax authority within 15 days of signing. If you have existing tenants and no written lease, this is worth fixing for both tax compliance and your own protection.
What happens if you don’t pay
The RRA has significantly increased enforcement of rental income tax in recent years, particularly in Kigali. An RRA official quoted in January 2026 specifically urged property owners to register their rented properties promptly and warned that the authority is actively auditing undeclared rental income.
The consequences of non-compliance:
- Late payment penalties and interest charges
- Back-dating of assessments — the RRA can audit multiple years at once
- In serious cases, liens placed on the property itself
The RRA’s own guidance is clear: landlords who come forward voluntarily are treated more favourably than those found during an audit. If you have not been declaring, the best time to start is now.
Three things that make filing easier
Keep a monthly payment record. The RRA wants to know your actual rental income. If you have been collecting cash and have no records, you are forced to estimate — which creates risk if you are ever audited. Digital payments via MoMo or bank transfer create an automatic record.
Use traceable payment methods. The RRA officially recommends this. An assistant commissioner of the RRA explicitly stated in January 2026: “We encourage property owners to receive payments through traceable methods, such as bank accounts, to provide evidence when needed.”
File on time even if you cannot pay immediately. The RRA treats timely declaration as a sign of good faith, even if the payment follows later. Missing the declaration deadline adds a separate penalty on top of any payment penalties.
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