Rental income tax calculator Ethiopia
Individuals who rent out a building, a home or a warehouse pay rental income tax under Schedule B. Enter your taxable rental income for the year to see the tax and your band.
How it's calculated
- The first ETB 24,000 of taxable rental income a year pays nothing.
- Then 15% up to ETB 48,000, 20% up to ETB 84,000, 25% up to ETB 120,000 and 30% up to ETB 168,000.
- Income above ETB 168,000 pays 35%.
- Enter the income after the deductions you are allowed. This calculator does not work out the deductions.
An example
ETB 100,000 of taxable rental income pays ETB 14,800 a year.
Frequently asked questions
What counts as rental income?
Income from renting out any building, residence or warehouse. Rent from industrial park buildings built by a developer, and some leases under the capital goods lease law, are left out.
Since when do these bands apply?
Proclamation 1395/2025 set them for income derived from 8 July 2025.
Do companies use these bands?
No. The bands are for individuals. Bodies such as companies are taxed differently.
Key terms
- Schedule B
- The part of the income tax law that covers rental income.
- Taxable rental income
- Rent for the year after the deductions the law allows.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
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