Tax Law (Amendment) act No 2 of 2020 was published on Dec 24th 2020.
Consequently, there are changes to the monthly PAYE tax bands issued for COVID19 relief.
Below are the new monthly tax bands effective January 2021. For more information, read KRA article here.
|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|
|Minimum Taxable Income: KES 24,001.00 per month|
For users of Wingubox Online Payroll Software, this formula will be automatically available in your account as well as older PAYE rates for 2020, 2018, 2017 through to 2007
Use our free PAYE tax calculator to see how your income has changed with the new act.