What amount of salary is taxable in Kenya?

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

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?

What are the New KRA tax rates?

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%

How much salary is exempt from tax?

Such basic exemption of Rs 2.5 lakhs is for your overall income for the year. You cannot claim this against various incomes separately. Therefore, you must sum up all your income during the year including the salary income from both your employers and then claim a basic exemption of Rs 2.5 lakhs from such income.

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What salary is not taxed in Kenya?

Personal relief

This means that individuals earning less than KES 24,000 monthly (KES 288,000 per year) continue to be exempt from income tax.

Who is exempt from paying tax in Kenya?

Tax exemption refers to the act of removing tax from goods or services offered by an organization. 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.

What is the minimum salary for PAYE?

If you are earning a salary of R75 750 (2017: R75 000) per year or R6 312.50 (2017: R6 250) per month before deductions, you should be paying PAYE monthly on the salary you receive. If you earn less than R6 312.50 (2017: R6 250) per month, you are not required to PAYE on a monthly basis.

How do I calculate my PAYE?

Example

  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 do I calculate my salary allowance?

Now, let’s calculate the same in the following three scenarios:

  1. Amount received as HRA from employer = Rs. 13,000 X 12 (months) = Rs. 1,56,000.
  2. Or, Actual rent paid less 10% of basic = (Rs. 10,000 X 12) – Rs. 36,000 = Rs. 84,000.
  3. 50% of basic salary since he lives in a metro = Rs. 1,80,000.

At what salary do you start paying tax?

Single, under the age of 65 and not older or blind, you must file your taxes if: Unearned income was more than $1,050. Earned income was more than $12,000. Gross income was more than the larger of $1,050 or on earned income up to $11,650 plus $350.

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Which month is tax deductible?

“The employer is required to deposit the tax deducted within 7 days of next month and for the month of March, tax shall be deposited by 30 April of the next financial year, informs Dr. Surana. In case an employee wants no deduction of TDS or deduction at a lower rate, it is still possible.

Do we need to pay tax every month?

Income tax is applicable to be paid by individuals, corporates, businesses, and all other establishments that generate income. … Even though income tax is paid every month from the monthly earnings, it is calculated on an annual basis. The amount of income tax an individual has to pay depends on a number of factors.

How do I become tax exempt?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)
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