Effective 1st January 2018 new income tax brackets will come into effect for all salaried workers. The tax rates/percentages will remain steadfast with the highest tax rates at 30%. However, the different income/salary bands at which these tax rates will change, favoring the lower-income earners.
The new income brackets and new KRA PAYE tax rates used to calculate the net pay will be as follows :
| 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% |
| KES 47,059 and above | 30% |
New KRA tax rates