Tax Rates

PAYE

In Kenya, workers in formal employment are taxed through a deduction named Pay As You Earn (PAYE).
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PAYE Calculator (Updated 2021 tax rates). This is what is currently being used in PAYE calculations 2023

Monthly Bands of Taxable Income (KES)	Tax Rate
0 – 24,000	10%
On the next 8,333	25%
Remaining amount over 32,333	30%
Personal Relief: KES 2,400.00 per month

PAYE rates in effect from 1 January 2018:

Monthly Taxable Pay (Ksh)	Annual Taxable Pay (Ksh)	Rate of Tax (%)
Up to 12,298	Up to 147,580	10
12,299 - 23,885	147,581 - 286,623	15
23,886 - 35,472	286,624 - 425,666	20
35,473 - 47,059	425,667 - 564,709	25
Above 47,059	Above 564,709	30

NHIF

NHIF rates in effect from 1 April 2015:

Gross Pay (Ksh)	Deduction (Ksh)	Gross Pay (Ksh)	Deduction (Ksh)
Up to 5,999	150	40,000 - 44,999	1,000
6,000 - 7,999	300	45,000 - 49,999	1,100
8,000 - 11,999	400	50,000 - 59,999	1,200
12,000 - 14,999	500	60,000 - 69,999	1,300
15,000 - 19,999	600	70,000 - 79,999	1,400
20,000 - 24,999	750	80,000 - 89,999	1,500
25,000 - 29,999	850	90,000 - 99,999	1,600
30,000 - 34,999	900	100,000 and above	1,700
35,000 - 39,999	950

Other PAYE parameters:

	Monthly Limit (Ksh)	Annual Limit (Ksh)	Effective Since
Personal Relief	1,408	16,896	1st January 2018
Insurance Relief	5,000	60,000	1st January 2007
Allowable Pension Fund Contribution	20,000	240,000	1st January 2006
Allowable HOSP Contribution	4,000	48,000	1st January 1999
Owner Occupier Interest	25,000	300,000	1st January 2017
Disability Exemption	150,000	1,800,000	10th March 2010