Tax Rates

PAYE, LST and NSSF rates for 2015.

PAYE

PAYE rates in effect as from 1st July 2012:

Monthly Taxable Pay (Ush) Annual Taxable Pay (Ush) Rate of Tax (%)
Up to 235,000 Up to 2,820,000 0
235,001 - 335,000 2,820,001 - 4,020,000 10
335,001 - 410,000 4,020,001 - 4,920,000 20
410,001 - 10,000,000 4,920,001 - 120,000,000 30
Above 10,000,000 Above 120,000,000 40

PAYE rates in effect up to 30 June 2012:

Monthly Taxable Pay (Ush) Annual Taxable Pay (Ush) Rate of Tax (%)
Up to 130,000 Up to 1,560,000 0
130,001 - 235,000 1,560,001 - 2,820,000 10
235,001 - 410,000 2,820,001 - 4,920,000 20
Above 410,000 Above 4,920,000 30

LST

Employees are required to pay local service tax (LST) to the local government in the area where they reside. The tax is deducted by the employer in four equal installments between July and October and remitted to the respective local governments.

LST rates in effect from 1 July 2008.

Monthly Income (Ush) Amount Payable per Year (Ush)
Up to 100,000 0
100,001 - 200,000 5,000
200,001 - 300,000 10,000
300,001 - 400,000 20,000
400,001 - 500,000 30,000
500,001 - 600,000 40,000
600,001 - 700,000 60,000
700,001 - 800,000 70,000
800,001 - 900,000 80,000
900,001 - 1,000,000 90,000
Above 1,000,000 100,000

NSSF

Monthly employee contribution is 5% of gross pay, while employer contribution is 10% of gross pay. There is no upper limit for either contribution.