The purpose of this study was to determine the effect of tax system simplicity on tax compliance among rental income earners in Eldoret town. The study sought to find out whether the simplicity of the tax system has an effect on the compliance of the rental income earners of Eldoret Central Business District. The study adopted an explanatory design. The target population of this study comprisedrental income earners within Eldoret Central Business District. The target population was 332 of which a sample of 181 waschosen using simple random sampling method. A five scale likert scale questionnaire was designed and distributed to the respondents. The validity and reliability was established through a pilot test. Data analysis was done using both descriptive and inferential statistics by the help of the statistical package for social sciences.Hypotheses were tested at 0.05, level of significance (95% confidence level) from the Chi-Square values. From the study findings it was established that the level of income of the rental income earners influenced their level of tax compliance. The study recommended that the government needs to improve on the taxation system and ensure that the tax payers can easily understand it. The findings of this study are expected to be of great assistance to the revenue collection agents, who might use the recommendations to augment the collection of tax from the rental income earners. The government will also be able to generate more revenue from rental income tax which might boost their operations
Keywords: Compliance, Landlord, Rental Income, Tax; Tax System
