If you make 18,000 KWD a year living in Kuwait, you will be taxed 1,890 KWD. That means that your net pay will be 16,110 KWD per year, or 1,343 KWD per month. Your average tax rate is 10.5% and your marginal tax rate is 8.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of 100 KWD in your salary will be taxed 8 KWD, hence, your net pay will only increase by 92 KWD.
A 1,000 KWD bonus will generate an extra 920 KWD of net incomes. A 5,000 KWD bonus will generate an extra 4,600 KWD of net incomes.
NOTE* Deductions are calculated based on the tables of Kuwait, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.
NOTE** Since January 1st, 2015, employee contributions to Kuwait's social security have increased by 2.5%, for a total of 10.5%. After a certain salary cap, the contribution goes back to 8%.