Kenya Revenue Authority

PAYE Salary Calculator

Finance Act 2023 rates · Finance Act 2025 amendments

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Finance Act 2025 updates applied (effective 1 July 2025): Tax-free per diem raised from KES 2,000 → KES 10,000/day • All gratuity payments (public & private) now fully exempt from tax • Post-Retirement Medical Fund (PRMF) deduction up to KES 15,000/month • Employers mandated to apply all reliefs automatically. PAYE bands, SHIF (2.75%), Housing Levy (1.5%) and personal relief (KES 2,400/month) are unchanged.
Income
Only amount above KES 5,000 is taxable
Tax-free up to KES 10,000/day FA 2025
Excess above KES 10,000/day is taxable
Optional Allowable Deductions
Max KES 30,000/month
Max KES 30,000/month
Max KES 15,000/month
Monthly Salary Breakdown All figures in KES
Gross Salary
Taxable Non-Cash Benefits
Taxable Per Diem Excess
Total Taxable Income (pre-deductions)
Less: SHIF (2.75%)
Less: NSSF (Tiered)
Less: Housing Levy (1.5%)
Less: Pension / Provident Fund
Less: Mortgage Interest
Less: PRMF Contribution
Chargeable Income
Tax Before Relief
Less: Personal Relief
PAYE Payable
SHIF
NSSF
Housing Levy
Net Take-Home Pay
Income
Only amount above KES 60,000/year is taxable
Tax-free up to KES 10,000/day FA 2025
Excess above KES 10,000/day is taxable
Optional Allowable Deductions
Max KES 360,000/year
Max KES 360,000/year
Max KES 180,000/year
Annual Salary Breakdown All figures in KES
Gross Annual Salary
Taxable Non-Cash Benefits
Taxable Per Diem Excess
Total Taxable Income (pre-deductions)
Less: SHIF (2.75%)
Less: NSSF (Tiered)
Less: Housing Levy (1.5%)
Less: Pension / Provident Fund
Less: Mortgage Interest
Less: PRMF Contribution
Annual Chargeable Income
Annual Tax Before Relief
Less: Personal Relief (KES 28,800)
Annual PAYE Payable
Annual SHIF
Annual NSSF
Annual Housing Levy
Net Annual Take-Home

This calculator provides estimates only and should not be considered financial or legal advice.
Tax rules may change — consult a qualified tax professional for advice specific to your situation.
Rates current as of Finance Act 2025 (effective 1 July 2025).

Kenya Statutory Deductions Calculator (2026) – Accurate Net Salary & PAYE Estimator

This Kenya statutory deductions calculator (2026) helps employees, HR teams, job seekers, and employers instantly calculate monthly salary deductions, PAYE tax, SHIF contributions, NSSF pension, and Affordable Housing Levy to determine accurate net take-home pay under the latest Kenya tax framework.

Whether you’re:

  • Comparing job offers in Kenya

  • Preparing payroll for employees

  • Budgeting your monthly income

  • Negotiating compensation

  • Ensuring payroll tax compliance

This updated 2026 salary calculator provides a clear, structured breakdown of all mandatory statutory deductions in Kenya.

What This 2026 Salary Calculator Covers

1️⃣ PAYE (Pay As You Earn) – Kenya Income Tax 2026

The tool applies the current progressive PAYE tax bands in Kenya, where tax rates range from 10% to 35% depending on income level.

  • Automatically factors in the monthly personal tax relief (KES 2,400)

  • Provides precise monthly income tax computation

  • Suitable for payroll processing and employee salary verification

This makes it a reliable Kenya PAYE calculator 2026 for both employees and employers.

2️⃣ NSSF Contributions (National Social Security Fund)

The calculator includes:

  • Tier I and Tier II pension contributions

  • Employee contribution of 6% of pensionable earnings

  • Maximum employee cap of KES 4,320

  • Employer matching contribution (for payroll reference)

It works as a practical NSSF deduction calculator Kenya for payroll accuracy.

3️⃣ SHIF (Social Health Insurance Fund)

Under Kenya’s current health financing structure:

  • SHIF replaces the former NHIF system

  • Deduction rate is 2.75% of gross monthly salary

  • Minimum monthly contribution of KES 300

The tool automatically computes SHIF contributions based on gross income, making it a dependable SHIF contribution calculator Kenya 2026.

4️⃣ Affordable Housing Levy

As per existing housing levy regulations:

  • Employee contributes 1.5% of gross salary

  • Employer matches an additional 1.5%

  • Calculator reflects the employee’s statutory portion

This functions as a practical Kenya housing levy calculator for monthly payroll projections.

All-In-One Kenya Salary & Net Pay Calculator (2026)

Beyond basic tax computation, this tool serves multiple high-intent salary calculation searches:

Kenya PAYE Calculator 2026 – Calculate income tax instantly
Net Salary Calculator Kenya – Determine your take-home pay
Gross to Net Salary Calculator – Full deduction breakdown
Kenya Payroll Calculator – Ideal for HR and finance teams
Statutory Deductions Calculator Kenya – All mandatory deductions in one place
Work Pay Calculator Kenya – Estimate monthly earnings
Free Salary Calculator Kenya – No login required
Income Tax Calculator Kenya 2026 – Updated for current tax bands
Take-Home Pay Calculator – Transparent payslip preview
Kenya Compensation Calculator – Compare job offers accurately

Who Should Use This Calculator?

Employees

  • Verify payslip accuracy

  • Understand PAYE deductions

  • Plan monthly budgets

Job Seekers

  • Compare gross vs net salary offers

  • Negotiate compensation confidently

Employers & HR Professionals

  • Prepare compliant payroll

  • Estimate total employee cost

  • Validate statutory remittances

Freelancers & Consultants

  • Project tax obligations

  • Estimate contract income deductions

Why This Kenya Salary Calculator Matters in 2026

With evolving tax regulations, rising living costs, and payroll compliance requirements, understanding statutory deductions in Kenya is no longer optional.

Using a reliable Kenya net pay and tax calculator helps you:

  • Avoid unexpected salary shortfalls

  • Improve financial planning

  • Ensure payroll compliance

  • Make informed employment decisions

Accurate salary projections create transparency between employers and employees while supporting smarter financial decisions.

Disclaimer:
This Kenya statutory deductions calculator reflects regulations applicable in 2026. Any future tax amendments, payroll reforms, or contribution changes will be updated to maintain compliance and accuracy.

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