Company Car Benefit Calculator
Calculate the monthly taxable value of an employer-provided vehicle (2% of vehicle purchase cost).
How KRA Values a Company Car Benefit
When an employer provides a company car for personal use, KRA treats it as a non-cash benefit and taxes it accordingly. The monthly taxable value is 2% of the vehicle's initial purchase cost. This amount is added to your taxable income and taxed via PAYE — it increases your tax bill but does not change your cash salary directly, since no cash actually changes hands.
Does a company car increase my take-home pay?
No. A company car is a non-cash benefit — it raises your taxable income (and therefore your PAYE) but doesn't add any cash to your salary.
This calculator gives an estimate for guidance only and is not tax advice — confirm final figures with KRA or a licensed tax advisor.