KRA offices. PHOTO | BMS
KRA offices. PHOTO | BMS

The new KRA Tax calculator 2020 denotes the changes in the taxman system. There are slight changes in taxation as the institution increased other levies.

This year 2020, the lowest income segments pay is a PAYE rate of 10% while the highest earners give 30% of their income to KRA. The other distinguished change is that the personal/tax relief increased by 10% to Ksh. 1,408 per month from Ksh. 1,280. Adding up the numbers to come up with your final payment can be daunting. For this reason, the KRA tax calculator is your best solution for determining your tax in 2020.

Pay as You Earn (PAYE) refers to income tax deductions from wages and salaries from employment. PAYE in Kenya applies to bonuses, salaries, commissions, wages, directors’ fees, or any other income from employment. PAYE also incorporates housing value as long as it is employer-provided. However, the PAYE deductions do not apply to anyone who is engaging in casual employment (employed for less than a month).

There are five tax zones or also referred to as tax brackets. From one tax band to the other, the taxable income increases by Ksh 11,587 except for the last group where the tax rate rises by 5%. The minimum taxable income comes from the lowest earners (Ksh 12,298 and below) who pay a tax rate of 10% while the highest band ( from Ksh 47,059 and above) give 30%.

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