What income is taxable in Kenya?

What is the minimum taxable income in Kenya?

It is worth noting that the tax relief introduced by the government effective April 2020 for persons earning a gross monthly income of up to KES 24,000 per month (currently the lowest tax band for individuals), as a means of cushioning the low income earners from the impact of the COVID-19 crisis, continues to apply.

What salary is taxable in Kenya?

How is PAYE calculated?

Taxable Income Tax Rate
KSh.0 – KSh.12,298 10%
KES 12,999 – KES 23,885 15%
KES 23,886 – KES 35,472 20%
KES 35,473 – KES 47,059 25%

Who is exempt from paying tax in Kenya?

Tax exemption in Kenya also extends to any ordinary person as well as individuals with disabilities. There are various forms of tax exemption, and all are dependent on the type of tax in discussion. For starters, tax exemptions can be made on value-added tax (VAT,) exercise duty, import duty to mention a few.

What income is tax exempt?

Certain groups of people who meet specific criteria don’t have to pay income taxes. For example, for the 2020 tax year (2021), if you’re single, under the age of 65, and your yearly income is less than $12,400, you’re exempt from paying taxes.

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How can I avoid paying tax in Kenya?

How to reduce your tax obligations in Kenya

  1. Pension with a registered retirement benefits scheme. This option allows you to both reduce your tax obligation and save for your retirement. …
  2. House Ownership Savings Plan (HOSP) …
  3. Life Insurance. …
  4. Investing in tax free instruments. …
  5. Disability relief.

How do I calculate my PAYE?


  1. Year-to-date regular income = R10,000.
  2. Annual equivalent = R10,000 x 12/1 = R120,000.
  3. Tax calculated on R120,000 as per tax tables = R7,533.
  4. PAYE payable on regular income = R7,533 x 1/12 = R627.75.

How much tax do I pay on secondary income?

If the income is to be between $48,000 and $70,000 a SH tax code is used and if income from all sources are going to be above $70,000 then an ST income tax code is used. Income from an SB tax code is taxed at 10.5%, for an S code the rate is 17.5%, for an SH code the tax is at 30% and for ST 33%.

How much do I take home if I earn 25000?

If your salary is £25,000, then after tax and national insurance you will be left with £20,640. This means that after tax you will take home £1,720 every month, or £397 per week, £79.40 per day, and your hourly rate will be £12.03 if you’re working 40 hours/week.

How much can you make without paying taxes 2019?

For single dependents who are under the age of 65 and not blind, you generally must file a federal income tax return if your unearned income (such as from ordinary dividends or taxable interest) was more than $1,050 or if your earned income (such as from wages or salary) was more than $12,000.

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Is tax Refund considered income?

First, federal income tax refunds are not taxable as income. Second, interest from both the federal and state governments is considered taxable income and should be reported. … If you did not itemize deductions on Schedule A and took the standard deduction, then the state refunds are not taxable.

What is taxable income example?

Reported in several forms, examples of taxable income include wages, salaries, and any bonuses you receive from your work which are documented on Form W-2. This extends to income reported on IRS Form 1099 from freelance work, retirement accounts, gambling, or other activities.

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