Freelance Tax Calculator — Kenya (2026)
Estimate tax due on freelance income. Enter income, allowable expenses and withholding tax credit; optionally include statutory contributions.
2026 Rates
Last verified: Today
Assumptions & Notes
How we estimate freelance income tax (2026).
Allowable expenses
Method & Rounding
SHIF, Housing, NSSF & Pension
Personal & Insurance relief
How This Freelance Tax Calculator Works
Understanding freelance and self-employment tax in Kenya with 2026 rates
Step 1: Enter Your Freelance Income
Input your gross freelance income (before expenses) for the period. This is the total amount you invoiced or received from clients. Choose monthly or annual mode depending on how you track your income.
Step 2: Deduct Business Expenses
Enter allowable business expenses that reduce your taxable income. These include office rent, equipment, internet, software subscriptions, professional fees, and other costs directly related to earning your income. Keep receipts for KRA compliance.
Step 3: Apply Withholding Tax Credit
If clients withheld tax (5% for consultancy, 10% for professional fees), enter the rate. This WHT is credited against your final tax liability. You'll pay the difference or get a refund when filing your annual return.
Step 4: View Your Tax Liability
See your taxable income (after expenses), tax due (using progressive PAYE rates), WHT credit, and final tax payable. The calculator also shows net income after tax. Use this for quarterly advance tax payments and annual iTax filing.
Understanding Your Freelance Tax Results
What each component means and how self-employment tax works in Kenya
Gross Income
Your total freelance earnings before any deductions. This is what you invoice clients or receive as payments. All income must be declared to KRA, even if clients didn't withhold tax.
Allowable Expenses
Business costs you can deduct from gross income to reduce taxable income. Must be wholly and exclusively for business. Keep receipts and invoices. Common expenses: office rent, equipment, internet, software, professional fees, travel.
Taxable Income
Gross income minus allowable expenses. This is what you pay tax on using progressive PAYE rates (10%, 25%, 30%, 32.5%, 35%). Lower taxable income through legitimate business expenses means lower tax.
Withholding Tax (WHT)
Tax deducted by clients when paying you. 5% for consultancy services, 10% for professional fees, 20% for non-residents. This is a credit against your final tax. You pay the difference or get a refund when filing your return.
Tax Payable
Final tax you owe after deducting WHT credit. Pay quarterly advance tax (due 20th of 4th, 6th, 9th, 12th month) to avoid penalties. File annual return in iTax by June 30th following the tax year.
Net Income After Tax
What you actually keep after paying tax. This is your take-home income. Use this for budgeting, pricing your services, and financial planning. Remember to set aside money for quarterly tax payments.
When to Use This Freelance Tax Calculator
Common situations where freelance tax calculations help with compliance and planning
1 Quarterly Tax Planning
Calculate quarterly advance tax payments due to KRA. Freelancers must pay tax quarterly (20th of 4th, 6th, 9th, 12th month). Use this calculator to estimate each payment and avoid penalties for underpayment.
2 Annual iTax Return
Prepare your annual income tax return for iTax filing (due June 30th). Calculate total tax liability, deduct WHT credits, and determine if you owe more tax or are due a refund. Essential for KRA compliance.
3 Service Pricing
When setting freelance rates, calculate how much tax you'll pay to ensure profitable pricing. If you want to net KES 150,000 after tax, work backwards to determine your gross income target and client rates.
4 Expense Optimization
See how business expenses reduce your tax liability. Compare scenarios with different expense levels to understand tax savings. Helps justify business investments like equipment, software, or office space.
5 WHT Reconciliation
Track withholding tax deducted by clients and reconcile against your total tax liability. Ensure you claim all WHT credits when filing your return. Helps identify if you'll owe more tax or get a refund.
6 Cash Flow Planning
Budget for tax payments throughout the year. Set aside the right percentage of income for quarterly tax. Avoid cash flow problems by planning for tax obligations in advance.
Official Data Sources
Our freelance tax calculations use official 2026 Kenya tax regulations and rates
- Kenya Revenue Authority (KRA) — Freelancers and self-employed individuals pay income tax using progressive PAYE rates as of 2026: 10%, 25%, 30%, 32.5%, 35%. Quarterly advance tax payments are mandatory. Annual return filing deadline is June 30th.
- Income Tax Act, Cap 470 — Governs taxation of business income in Kenya. Freelancers are taxed on profits (income minus allowable expenses). Withholding tax rates: 5% consultancy, 10% professional fees, 20% non-residents.
- Allowable Business Expenses — Expenses must be wholly and exclusively for business. Deductible: office rent, equipment, internet, software, professional fees, travel. Non-deductible: personal expenses, entertainment, fines, capital expenditure.
- Quarterly Advance Tax — Self-employed individuals must pay advance tax quarterly: 20th of 4th month (April 20), 6th month (June 20), 9th month (September 20), 12th month (December 20). Penalty for late payment: 5% of tax due.
- Turnover Tax Option — Businesses with annual turnover under KES 5 million can opt for turnover tax at 15% of gross income (no expense deductions). Simpler compliance but may result in higher tax if you have significant expenses.
- Last Verified: . We verify our calculations against official KRA tax rates and regulations. All rates are current for 2026.
Real-World Freelance Tax Examples (2026)
See comprehensive freelance tax calculations for common self-employment scenarios in Kenya with 2026 rates
Freelance Consultant
Gross Income: KES 1,200,000
Business Expenses: KES 300,000
Taxable Income: KES 900,000
Tax Before Relief: KES 175,000
WHT Credit (5%): KES 60,000
Final Tax Payable: KES 86,200
Net Income After Tax
KES 1,053,800
Graphic Designer
Gross Income: KES 150,000
Business Expenses: KES 30,000
Taxable Income: KES 120,000
Tax Before Relief: KES 26,900
WHT Credit (5%): KES 7,500
Final Tax Payable: KES 17,000
Net Income After Tax
KES 125,500
Software Developer
Gross Income: KES 3,600,000
Business Expenses: KES 600,000
Taxable Income: KES 3,000,000
Tax Before Relief: KES 925,400
WHT Credit (10%): KES 360,000
Final Tax Payable: KES 536,600
Net Income After Tax
KES 2,703,400
Content Writer
Gross Income: KES 80,000
Business Expenses: KES 15,000
Taxable Income: KES 65,000
Tax Before Relief: KES 9,100
WHT Credit (5%): KES 4,000
Final Tax Payable: KES 2,700
Net Income After Tax
KES 73,300
Freelance Tax — FAQs
Short answers about freelance income tax in Kenya.
Yes. WHT deducted by your clients is a credit against your final tax. Enter the WHT amount (or rate) so we reflect it in the estimate.
Only business‑related expenses are allowable. Keep proper documentation for KRA. Personal expenses do not reduce taxable income.
SHIF is generally applicable; NSSF can be voluntary for self‑employed. We provide toggles to include/exclude them in the estimate.
Yes. From 27 Dec 2024, SHIF and Housing Levy contributions are deductible. We apply these deductions when toggled on.
No. Personal Relief applies to residents only. Ensure your Resident status is set correctly.
If you know the exact WHT amount, enter it under Advanced. Otherwise, select a rate and we estimate the credit from your income.
We use the monthly PAYE bands on monthly equivalent taxable income, then scale to annual if needed.
We apply the monthly equivalent of the statutory cap and restrict deductible pension to that amount for the period.
When toggled on, we estimate NSSF at 6% with current 2026 caps and deduct it from taxable income. This is an approximation for planning.
Yes. Use “Copy share link” to copy a URL with your inputs and toggles. Pasting the link will reproduce the same setup.
Turnover tax is 15% on gross income (no expense deductions) for businesses under KES 5M annual turnover. Income tax is on profits (income minus expenses) using progressive rates. Choose turnover tax if you have low expenses; income tax if you have significant deductible costs.
File through KRA iTax portal by June 30th following the tax year. Submit Form IT1 (individual return) with your income, expenses, and WHT credits. Pay any balance due or claim refund. Keep all receipts and invoices for 5 years.
Yes, if you work from home. Deduct a proportionate share of rent, electricity, internet based on space used for business. Keep documentation showing business use. KRA may query excessive home office deductions, so be reasonable.
KRA charges 5% penalty on unpaid quarterly advance tax plus 1% interest per month. You must still pay the full annual tax when filing your return. Pay quarterly (April 20, June 20, September 20, December 20) to avoid penalties.
Only if your annual taxable turnover exceeds KES 5 million. Below that, VAT registration is voluntary. If VAT-registered, charge 16% VAT on invoices and file monthly VAT returns. Most freelancers below KES 5M don't register.
Yes. Voluntary NSSF contributions (6% up to KES 36,000/month) and NHIF premiums are deductible from taxable income. This reduces your tax liability. However, you must actually pay these contributions to claim the deduction.
You still pay Kenyan income tax on worldwide income if you're a Kenyan resident. Foreign clients typically don't withhold Kenyan tax, so you'll pay the full tax when filing. Consider double taxation treaties if the client's country also taxes you.
Keep all receipts, invoices, bank statements, and contracts. Expenses must be supported by documentation showing: what was purchased, when, from whom, amount paid, and business purpose. Digital records are acceptable. Retain for 5 years.
Capital equipment (computers, furniture) is depreciated over time, not fully deducted in year of purchase. Claim annual depreciation allowance (e.g., 30% for computers). Small items under KES 20,000 can often be expensed immediately. Consult KRA guidelines.
Tax rates are typically confirmed in Kenya's annual Finance Act (July/August). PAYE rates have been stable for years. We update this calculator immediately when KRA announces any rate changes. Subscribe for 2027 rate alerts.