PAYE with reliefs and deductions calculator
Work out PAYE for each employee with pension, insurance relief and mortgage interest, from gross pay to take-home.
PAYE is more than a rate on pay. Enter each employee's gross pay, their pension contribution, insurance premiums and mortgage interest, and the workbook takes off the statutory deductions, applies the deduction limits, works out the tax in bands, applies personal and insurance relief and shows the PAYE and the take-home pay, using rates you can check and edit.
Payroll officers, accountants and employees who want to see exactly how reliefs and deductions change the tax.
What is included
- Statutory deductions worked out from gross pay
- Pension and mortgage interest within their limits
- Tax in bands, personal relief and insurance relief
- PAYE and take-home pay for each employee
- Rates and limits you can edit
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How to use it
- Check the Rates sheet against the current KRA figures.
- Enter each employee's gross pay and monthly pension, premiums and mortgage interest.
- Read the taxable pay, the relief and the PAYE.
- Compare a few results with the PAYE calculator on this site.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
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What the paye with reliefs and deductions calculator does
PAYE is more than a rate on pay. Enter each employee's gross pay, their pension contribution, insurance premiums and mortgage interest, and the workbook takes off the statutory deductions, applies the deduction limits, works out the tax in bands, applies personal and insurance relief and shows the PAYE and the take-home pay, using rates you can check and edit.
Who it is for
Payroll officers, accountants and employees who want to see exactly how reliefs and deductions change the tax.
How to use the workbook
- Check the Rates sheet against the current KRA figures.
- Enter each employee's gross pay and monthly pension, premiums and mortgage interest.
- Read the taxable pay, the relief and the PAYE.
- Compare a few results with the PAYE calculator on this site.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Statutory deductions worked out from gross pay
- Pension and mortgage interest within their limits
- Tax in bands, personal relief and insurance relief
- PAYE and take-home pay for each employee
- Rates and limits you can edit
The workbook has these sheets: Instructions, PAYE, Rates. The main table has the columns Employee; Gross pay; Pension contribution; Insurance premiums; Mortgage interest; Statutory deductions; Taxable pay; Tax before relief. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- Reliefs need proof; keep the certificates.
- The limits change; check them each year.
- Run the same figures through the PAYE calculator.
- Record the date of the rates you used.
Why keep this record
Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.
Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Paye calculator, Tax reliefs calculator. See more tax templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: PAYE Calculator
- Free calculator: Tax Reliefs Calculator
- Guide: How to prepare for a performance review and a salary talk
- Guide: Caretakers and property managers: roles, pay and oversight
- Guide: How KRA uses data matching and what it means for you
- Another template: Tax reliefs and exemptions claim tracker
- Another template: Annual income tax estimator
- Another template: Annual income tax return filing checklist
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