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Ethiopia vs Kenya
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇪🇹 Ethiopia
vs
🇰🇪 Kenya
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
10–35%
Ruto administration fiscal consolidation; rates stable
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% standard
No change
16%
16% maintained; exemption list under review
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30%; industrial parks offer incentives
No change
30%
30% stable; East Africa harmonization discussions
No change

Capital Gains Tax

Capital Gains Tax
15%
15% maintained
No change
15%
15% property CGT unchanged
No change

Social Security & Payroll

Social Security / Payroll
~17%
Pension expansion targeted
No change
~14%
Universal health coverage (SHA) replacing NHIF from 2024
No change
State, Regional & Local Taxes

🇪🇹 EthiopiaRegional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

🇰🇪 KenyaCounty & Local Authority Taxes

Kenya's 47 counties levy business permits (single business permit), property rates, and various local service charges. County governments have own-source revenue from markets, parking, land rates, and entertainment taxes. The Kenya Revenue Authority (KRA) administers national taxes. A housing levy of 1.5% of gross salary (employer+employee) was introduced in 2023. The digital service tax (DST) at 1.5% on digital marketplace revenues was replaced by a significant economic presence tax framework.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Ethiopia vs Kenya: Key Tax Differences (2026)

💰 Income Tax: Ethiopia and Kenya have similar top income tax rates (0–35% vs 10–35%).

🛒 VAT/Sales Tax: Kenya has a higher consumption tax (15% vs 16%).

🏢 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

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