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Kenya PAYE Tax & Net Salary Calculator 2026

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Monthly Gross Salary

KES 100,000
Pension, Reliefs & Deductions (Voluntary)
*Reduces KRA taxable income up to KES 20,000/mo
*Eligible owner-occupier mortgage interest deductible up to KES 30,000/mo
*Qualifies for 15% relief up to KES 5,000/mo
Net Salary (Take Home)
KES 69,167
69.2% of gross salary
PAYE (KRA Tax)
KES 20,583
Total Deductions
KES 30,833

Statutory Breakdowns

NSSF Pension KES 6,000
SHIF Health Cover KES 2,750
Affordable Housing Levy KES 1,500

Interactive Breakdown

Annual Salary Projections

Metric Monthly Amount Annual Projections
Gross Salary KES 100,000 KES 1,200,000
NSSF Contributions KES 6,000 KES 72,000
SHIF Deductions KES 2,750 KES 33,000
Affordable Housing Levy KES 1,500 KES 18,000
KRA PAYE Tax KES 20,583 KES 247,000
Net Take Home KES 69,167 KES 830,000

2026 KRA Tax Bands & Deductions explained

Income tax (PAYE) in Kenya is calculated progressively. Your salary is taxed in different bands ranging from 10% for the first KES 24,000, up to 35% for amounts exceeding KES 800,000. Additionally, a monthly personal relief of KES 2,400 is deducted to reduce your final tax liability.

Income Band (Monthly KES) Tax Rate
Up to KES 24,000 10%
KES 24,001 to KES 32,333 25%
KES 32,334 to KES 500,000 30%
KES 500,001 to KES 800,000 32.5%
Above KES 800,000 35%

What are the statutory deductions?

  • NSSF (Social Security): 6% of your gross pay, capped at KES 6,480 per month (applicable up to a gross salary ceiling of KES 108,000).
  • SHIF (Social Health Insurance): Replaced NHIF at a flat rate of 2.75% of your total gross income, with no upper cap.
  • Affordable Housing Levy: A statutory levy of 1.5% of your gross monthly salary, which is matched by another 1.5% from your employer.

How PAYE is Calculated in Kenya (2026)

PAYE (Pay As You Earn) is calculated by the employer each month and remitted to the Kenya Revenue Authority (KRA) on or before the 9th of the following month. The calculation follows these steps:

  1. Determine gross monthly salary — all employment income including basic pay, allowances, benefits in kind.
  2. Deduct NSSF contributions — under the NSSF Act 2013 Year 4 schedule (effective Feb 2026), employee contributes 6% up to KES 9,000 (Tier I, max KES 540) plus 6% on earnings between KES 9,001 and KES 108,000 (Tier II, max KES 5,940). Maximum employee NSSF = KES 6,480/month.
  3. Deduct registered pension and mortgage interest — if applicable, contributions to a registered pension fund (up to KES 20,000/month) and owner-occupier mortgage interest (up to KES 30,000/month) reduce taxable income.
  4. Apply 2026 KRA progressive tax bands — tax is computed at increasing marginal rates on each portion of taxable income.
  5. Subtract personal relief — every resident employee is entitled to KES 2,400/month (KES 28,800/year) personal relief, deducted directly from gross PAYE tax.
  6. Deduct SHIF — Social Health Insurance Fund at 2.75% of gross salary is remitted separately.
  7. Deduct Affordable Housing Levy — 1.5% of gross salary, with an equal 1.5% employer contribution.

2026 Kenya PAYE Tax Bands (Monthly)

The KRA uses the following progressive monthly tax bands for 2026. These apply to taxable income after NSSF and any qualifying deductions:

Monthly Taxable Income (KES) Tax Rate Max Tax on Band
KES 0 – 24,00010%KES 2,400
KES 24,001 – 32,33325%KES 2,083
KES 32,334 – 500,00030%KES 140,300
KES 500,001 – 800,00032.5%KES 97,500
Above KES 800,00035%No cap

Note: Personal relief of KES 2,400/month is subtracted from gross tax after bands are applied. This effectively makes the first KES 24,000 of monthly income tax-free for every resident employee.

Frequently Asked Questions — PAYE Calculator Kenya 2026

How is PAYE calculated in Kenya?

PAYE in Kenya is calculated by first deducting NSSF contributions from gross salary to arrive at taxable income. Progressive KRA tax bands are then applied: 10% on the first KES 24,000, 25% on KES 24,001–32,333, 30% on KES 32,334–500,000, 32.5% on KES 500,001–800,000, and 35% above KES 800,000. The monthly personal relief of KES 2,400 is subtracted from the resulting gross tax to give net PAYE.

What is the PAYE tax rate in Kenya 2026?

Kenya uses a progressive PAYE rate structure in 2026: 10% on income up to KES 24,000, 25% on the next KES 8,333, 30% on income between KES 32,334 and KES 500,000, 32.5% on income between KES 500,001 and KES 800,000, and 35% on income above KES 800,000 per month.

How much PAYE is deducted from a KES 100,000 salary in Kenya?

On a gross monthly salary of KES 100,000 in Kenya (2026), NSSF of KES 6,000 (Tier I KES 540 + Tier II KES 5,460 under Year 4 rates) is deducted first. Taxable income is KES 94,000. After applying progressive tax bands and subtracting personal relief of KES 2,400, net PAYE is approximately KES 20,583. Total deductions including SHIF (KES 2,750) and Housing Levy (KES 1,500) bring take-home pay to approximately KES 69,167.

What is personal relief in Kenya PAYE?

Personal relief is a statutory tax credit of KES 2,400 per month (KES 28,800 per year) that every resident individual employee in Kenya is entitled to. It is deducted directly from gross PAYE tax before the final PAYE liability is determined, effectively making the first KES 24,000 of monthly income tax-free.

Is NSSF deducted before PAYE is calculated in Kenya?

Yes. NSSF contributions are deducted from gross salary before PAYE is calculated. The NSSF amount reduces your taxable income, which lowers the overall PAYE liability. Under the NSSF Act 2013 Year 4 schedule, the employee contribution is capped at KES 6,480/month for salaries above KES 108,000.

Is SHIF deducted before or after PAYE in Kenya?

SHIF (Social Health Insurance Fund) is calculated at 2.75% of gross salary and is a separate deduction. It does not reduce your taxable income for PAYE purposes, but eligible insurance relief may be claimed if premiums qualify under the Income Tax Act.

What is the Affordable Housing Levy in Kenya?

The Affordable Housing Levy is a 1.5% deduction from gross salary, matched by an equal 1.5% employer contribution. Introduced under the Finance Act 2023, it funds affordable housing development. It is deducted separately from PAYE and does not reduce taxable income.

Related Kenya Salary Calculators

Kenya Tax Calculator Hub → Net to Gross Salary Calculator → Kenya Payslip Calculator → NSSF Calculator Kenya → Bonus Tax Calculator Kenya → Salary Raise Calculator Kenya → Employer Cost Calculator Kenya → Mortgage Relief Calculator →

Disclaimer: These calculations are estimates based on 2026 KRA guidelines and are provided for informational purposes only. CenterBoard is not affiliated with KRA or any government body. Consult a qualified tax professional or KRA iTax for official PAYE computation.