Rental income tax calculation
Calculate rental income tax for individuals under Azerbaijan Tax Code
Last updated: 19.06.2026
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In Azerbaijan, income earned by individuals from property rental is subject to tax. In 2026, the rental income tax rate is 14% when renting as an individual, not within the framework of business activity. Tax is calculated on the monthly rental amount. If the tenant is a legal entity, the tax obligation falls on the tenant — the legal entity acts as a tax agent. When renting to individuals, the landlord must submit a tax declaration themselves.
- –Tax Code — Article 96 (rental income tax)
- –Tax Code — Article 102 (income tax rates)
- –Tax Code — Article 149 (tax agent obligations)
- –State Tax Service — rental income declaration rules
Last updated: January 2026
What percentage of tax is paid on rental income?
In 2026, rental income tax as an individual is 14%. A different tax regime may apply when renting within the framework of business activity.
Is rental agreement registration mandatory?
Yes. According to the Tax Code, the rental agreement must be registered with tax authorities. Renting without registration is a violation of tax legislation.
How is tax paid if the tenant is a legal entity?
If the tenant is a legal entity, it acts as a tax agent — it withholds 14% tax from the rental amount and pays it to the budget. The landlord receives only the remaining 86%.
Are utility costs included in rental income?
If utility costs are included in the rental amount, tax is withheld from the total amount. If paid separately, they are not subject to taxation.
When must the annual tax declaration be submitted?
Individuals must submit a rental income declaration for the previous year by March 31 of each year.
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All results are for informational purposes only and do not replace official legal decisions.