PAYE Calculator Kenya 2026
Work out PAYE, NSSF, SHIF, Housing Levy and your net pay from your gross salary.
Enter your figures above to see the result.
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What PAYE is
PAYE (Pay As You Earn) is the income tax your employer deducts from your pay each month and sends to the Kenya Revenue Authority on your behalf. It is not a separate tax from "income tax": it is simply the way income tax on employment is collected. Because the tax is taken at source, most employees do not pay anything extra when they file their annual return unless they have other income.
How the calculation works
The calculator follows the same order your payroll should use:
- Gross pay is your basic salary plus taxable cash allowances (house, transport and similar) plus the taxable value of non-cash benefits such as a company car.
- NSSF is worked out on gross pay in two tiers. Tier I applies up to the lower earnings limit and Tier II covers pay between that limit and the upper limit. At the moment the limits are KES 9,000 and KES 108,000, and the employee rate is 6%.
- SHIF is 2.75% of gross pay, with a minimum of KES 300 a month.
- The Housing Levy is 1.5% of gross pay.
- Allowable deductions are NSSF, other pension contributions (together with NSSF they are capped at KES 30,000 a month), SHIF and the Housing Levy, mortgage interest (capped at KES 30,000) and post-retirement medical contributions (capped at KES 15,000).
- Taxable pay is gross pay less those deductions.
- Tax is charged on taxable pay in bands, from 10% on the first slice up to 35% on the highest. The full band table is in the "Rates used" section on this page.
- Reliefs are subtracted from the tax. Everyone gets personal relief of KES 2,400 a month, and insurance premiums earn 15% relief up to a monthly cap.
- PAYE is what remains, and it can never be below zero.
Your net pay is gross pay less NSSF, SHIF, the Housing Levy, PAYE and any other deductions you enter.
A worked example
Take a monthly salary of KES 100,000 with no other income. NSSF is KES 6,000.00, SHIF is KES 2,750.00 and the Housing Levy is KES 1,500.00. After the reliefs, PAYE is KES 19,308.35, which leaves net pay of KES 70,441.65. Open the breakdown above to see each band, because the point of this tool is that every figure can be traced.
What changes the answer
- The date. NSSF limits rise each February, SHIF replaced NHIF in late 2024, and the Housing Levy only began in 2024. Use the "calculate for date" box to see an older or future month.
- Benefits. A company car or free housing is taxed even though you never receive cash. Enter its taxable value in the benefits box, or work it out with the benefits calculator.
- Tier II. If you are contracted out of Tier II through an approved scheme, untick the box.
- Disability exemption. A person with a disability and an exemption certificate has part of their monthly income exempt.
- Annual amounts. Switch the period to "per year" if you only know yearly figures. The result is divided by twelve, calculated, and multiplied back.
Common mistakes
Employees often compare this result with a payslip and find a difference. The usual causes are an employer using a different NSSF base, a benefit that is taxed on the payslip but not entered here, a loan or SACCO deduction (enter it as "other deductions"), or a payslip for a month when the rules were different. If the difference is large, ask payroll for the working.
Employer obligations
Employers deduct PAYE each month, pay it to KRA by the due date and file the monthly return. After the year ends they give each employee a P9 form showing total pay and tax, which you need for your annual return. You can estimate that return with the P9 calculator.
This calculator gives an estimate for information only. Your employer's payroll and KRA's records decide the figure that is actually deducted.
Guides, tools and templates for this topic
Read next: NSSF contributions explained: tiers, limits and what you pay, SHIF contributions explained: rate, minimum and who pays, The Affordable Housing Levy explained for employees and employers
Related calculators: Net to Gross Salary Calculator, NSSF Calculator, SHIF Calculator
Excel templates: Staff cost and headcount budget planner, Statutory remittance tracker (PAYE, NSSF, SHIF, Housing Levy), Gross-to-net salary table
More in the blog and the template shop, or ask for a custom template.
Rates used
| Rate | Value | Since |
|---|---|---|
| paye.monthly_bands | up to KES 24,000 at 10% up to KES 32,333 at 25% up to KES 500,000 at 30% up to KES 800,000 at 32.5% no limit at 35% | 1 Jul 2023 |
| paye.personal_relief | 2,400 | 1 Jan 2018 |
| paye.insurance_relief | rate: 15% monthly cap: 5,000 | 1 Jan 2018 |
| nssf.tiers | lel: 9,000 uel: 108,000 fixed amount: None employee rate: 6% employer rate: 6% | 1 Feb 2026 |
| shif.rate | 2.75% | 1 Oct 2024 |
| shif.minimum | 300 | 1 Oct 2024 |
| ahl.employee_rate | 1.5% | 1 Mar 2024 |
| ahl.employer_rate | 1.5% | 1 Mar 2024 |
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Frequently asked questions
Is PAYE the same as income tax?
PAYE is the way income tax on employment is collected. Your employer deducts it from each payslip and pays it to KRA, so it is income tax, paid as you earn rather than in one go after the year ends.
Why is my payslip different from this result?
Common causes are a different NSSF base, benefits that payroll taxes but you did not enter, loan or SACCO deductions, and a different pay month with different rates. Enter all of those and use the date box; if a gap remains, ask payroll for the working.
When is PAYE due to KRA?
Employers must pay PAYE to KRA and file the monthly return by the 9th of the month after the pay month, through iTax. The employee does nothing, but a P9 form at year end shows what was paid.
Do I still need to file a return if I only have a salary?
Yes. Every taxpayer with a KRA PIN must file an annual return by 30 June, even when PAYE covers the tax. If nothing else is owed, the return is quick to complete and can bring a refund if reliefs were missed.
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Related articles
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Estimates for information only. Not tax or financial advice. Confirm with the relevant authority or a registered professional. KenyaTax is independent and not affiliated with any government body.