The Effect of Culture of Tax Payers on Monthly Rental Income Tax Compliance Among Landlords in Lower Kabete, Kenya

Purpose; Tax is the most important stream of revenue for government’s development projects and services including health care, infrastructure, education, and electricity. Efforts must be made by governments to ensure that it is accurately and efficiently collecting revenue to facilitate the government’s operations. Therefore, the purpose of this study was to determine the effect of culture of a taxpayer on monthly rental income tax compliance among landlords in Lower Kabete, Kenya. The theory that guided this study was Ability to pay theory and Behavioral Theory. Methodology; Explanatory research design was used in this study. The target population of the study was 2156 and a sample size of 337 landlords in Lower Kabete, Kenya. The response rate for the survey, was 70.9%, with 239 out of 337 respondents. Questionnaires were used to collect primary data and analysis included both descriptive and inferential statistics. Results; The study found that culture of taxpayers had a positive and significant effect on monthly rental income tax compliance β = 0.180, p = 0.002. Recommendation; The government should focus on fostering a positive culture of tax compliance by promoting awareness and community-level discussions on the importance of tax adherence.