Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
KSh 40,385
Income Tax
- KSh 739
National Hospital Insurance Fund (NHIF)
- KSh 1,800
National Social Security Fund (NSSF)
- KSh 2,400
Total tax
- KSh 4,939
Net pay
* KSh 35,447
Marginal tax rate
10.0%
Average tax rate
12.2%
87.8%
Net pay
12.2%
Total tax
Total tax
Net pay
The Taxberg
KSh 35,447
Net pay
KSh 2,400
Tax the employer pays
KSh 4,939
Tax you pay
Total tax paid
KSh 7,339
Did you know your employer also pays tax on your salary? It costs the employer KSh 2,400 to pay you KSh 40,385. In other words, every time you spend KSh 10 of your hard-earned money, KSh 1.82 goes to the government.
Real tax rate
17.2%
So, with you and the employer both paying tax, what used to be a 12.2% tax rate now rises to 17.2%, meaning your real tax rate is actually 5% higher than what it seemed at first.
Summary
If you make KSh 40,385 a year living in Kenya, you will be taxed KSh 4,939. That means that your net pay will be KSh 35,447 per year, or KSh 2,954 per month. Your average tax rate is 12.2% and your marginal tax rate is 10.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of KSh 100 in your salary will be taxed KSh 10, hence, your net pay will only increase by KSh 90.
Bonus Example
A KSh 1,000 bonus will generate an extra KSh 900 of net incomes. A KSh 5,000 bonus will generate an extra KSh 4,500 of net incomes.
NOTE* Withholding is calculated based on the tables of Kenya, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.