2018 PAYE Income Tax Band in Kenya

The Finance Act 2017 amended the Third Schedule to the Income Tax Act by introducing revised individual tax rates. The revised rates have, when compared to the 2017 rates, brought about an expansion of approximately 10% in the tax bands and increased relief from KES 15,360 per annum to KES 16,896 per annum.

The 2018 rates are effective starting 1st January 2018. It is expected that the expansion of the tax bands coupled with the increase in relief will have an effect of lowering the tax burden for employees therefore increasing the net pay

​Taxable IncomeTax Rate
KSh0 – KSh147,58010%
KSh147,581 – KSh286,62315%
KSh286,624 – KSh425,66620%
KSh425,667 – KSh564,70925%
KSh564,710 and Above30%