Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
KSh 760
Income Tax
- KSh 12.54
National Hospital Insurance Fund (NHIF)
- KSh 34.62
National Social Security Fund (NSSF)
- KSh 46.15
Total tax
- KSh 93.31
Net pay
* KSh 667
Marginal tax rate
10.0%
Average tax rate
12.3%
87.7%
Net pay
12.3%
Total tax
Total tax
Net pay
The Taxberg
KSh 667
Net pay
KSh 46.15
Tax the employer pays
KSh 93.31
Tax you pay
Total tax paid
KSh 139
Did you know your employer also pays tax on your salary? It costs the employer KSh 46.15 to pay you KSh 760. In other words, every time you spend KSh 10 of your hard-earned money, KSh 1.84 goes to the government.
Real tax rate
17.3%
So, with you and the employer both paying tax, what used to be a 12.3% tax rate now rises to 17.3%, meaning your real tax rate is actually 5% higher than what it seemed at first.
Summary
If you make KSh 39,520 a year living in Kenya, you will be taxed KSh 4,852. That means that your net pay will be KSh 34,668 per year, or KSh 2,889 per month. Your average tax rate is 12.3% 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.