Uganda Rental Income Tax Guide 2026
Rental income in Uganda is subject to a 6% withholding tax on gross rent for resident landlords, which is a final tax. Landlords may opt to be taxed under the normal PAYE/CIT regime with allowable deductions. Non-resident landlords face 15% WHT on gross rent. Tenants must withhold the tax and remit it to URA.
Rental Income — 6% Withholding Tax
Rental income from property located in Uganda is subject to a 6% withholding tax on the gross rental amount. The tenant (or property manager) is responsible for deducting the 6% and remitting it to URA by the 15th of the following month. This 6% WHT is a final tax for resident landlords — no further filing or tax is required on the rental income. For example, a landlord receiving UGX 5,000,000/month in rent has UGX 300,000 withheld by the tenant.
Opting Into Normal Taxation
Landlords with significant allowable deductions (mortgage interest, maintenance, insurance) may choose to be taxed under the normal PAYE or CIT regime instead of the 6% final WHT. Under PAYE/CIT, the rental income is included in total income, and allowable deductions are claimed against the gross rent. The 6% WHT already paid is creditable against the final tax liability.
Allowable Deductions
- Mortgage interest: Interest on loans used to purchase or improve the rental property
- Repairs and maintenance: Costs of keeping the property in a habitable condition
- Insurance premiums: Buildings and landlord liability insurance
- Property management fees: Fees paid to managing agents
- Ground rent and property rates: Local government charges
- Service charges: Common area maintenance in apartment blocks
Non-Resident Landlords
Non-resident landlords receiving rental income from Uganda are subject to 15% withholding tax on gross rent. This is a final tax for non-residents unless they have a permanent establishment in Uganda.
Disclaimer
This guide provides general information. Tax laws may change. Consult a qualified Ugandan tax advisor or URA for your specific situation.